In May 2020, the New York Times reported that over 50% of Google’s employees were actually outsourced. Over 130,000 Google employees are contractors. Staffing solutions and Employment of Record companies like Adecco, Accenture and Cognizant recruit, manage and pay these employees.
A portion of these contractors work remotely from the Philippines and India. The remaining 123,000 employees work directly for Google.
Why Outsourcing Staffing Solutions are Good for Google
Google uses contractors from staffing agencies to fill gaps in talent for specialized projects. Contractors are also hired to fill in for permanent employees who are away on annual and maternity leave. A large portion of the workforce is delegated to staffing agencies just to lighten the workload in internal operations.
The Cost-Saving Benefits of Outsourcing
Google doesn’t have to pay their contractors as much as their permanent employees. In addition, health insurance and all other perks are taken care of by the staffing agency or by the contractors themselves. Google's partnership with staffing agencies also allows them more flexibility on contract duration.
Save Time On Training
Staffing agencies typically maintain long-term relationships with their clients. Their familiarity with Google's operations means contractors don’t require as much training and can start work immediately.
Why Big Companies Outsource to the Philippines
The Philippines produces half a million English speaking college graduates per year. The country has a high rating in the 2019 EF English Proficiency Index. In addition, the low GDP means that Western employers get the same level of experience at significantly lower salaries.
With that in mind, what kind of staffing solutions are best sourced in the Philippines?
Outsourcing Front-line Staff to the Philippines
Outsourcing Customer Service
The Philippines ranks as one of the top countries in the world to outsource Customer Service to.
American-style English is one of the two official languages. Numerous American companies choose the Philippines as their destination of choice for Knowledge Process Outsourcing (KPO). This area of function in businesses demands high levels of skill and expertise.
Customer and technical support staff salaries in the Philippines go up to USD500 a month. Australian support staff salaries average at USD3,000, while the US averages at USD2,300. A company can save over 430% on customer support if they outsource support to the Philippines.
Outsourcing Sales to the Philippines
Telesales positions are very popular to outsource in the Philippines for similar reasons. Besides the usual reasons of cost efficiency, English is also an official language of the country.
Culturally, Filipinos are known to be friendly and polite. They also have a good understanding of Western culture due to exposure to popular American media. Their familiarity with Western culture enables them to build rapport and relationships more easily on sales calls.
The education system in the Philippines is also structured like the American school system. As a result, qualifications are more easily understood by American employers.
Outsourcing Back-Office Staffing Solutions
Outsourcing accounting is one of the most beneficial and cost-effective staffing strategies a business can adopt. Fees paid to a staffing agency are significantly lower than the salary of a full-time accountant in most countries.
EOR staffing agencies or the contracting accountant, usually provides accounting software. Accountancy also remains one of the few departments that doesn’t require a physical office. This means a workspace and other equipment needn't be provided.
On top of this, when you outsource accounting, you will only pay for the services you need. You can add or remove services as your business needs change.
You may be reluctant to hire an individual for the sole purpose of calculating and distributing payroll. Outsourcing this particular task can be done on a monthly as-needed basis to experts in the Philippines.
Filipino payroll specialists can compute employee's wages, including holiday and night shift rates. Country-specific specialists are also available. So you can rest assured that your business remains compliant and legal in your own country. A payroll specialist is also less likely to make mistakes than an internal accountant, who will be focused on other other tasks.
Hiring a Virtual Assistant
Hiring virtual assistants in Asia is a common practice among business owners. VA’s are often delegated necessary but time-consuming tasks. This frees up your in-house employees to focus on more specialized tasks.
Virtual assistants in the Philippines are fluent in English. There is a great demand for them to perform administrative and communication-based tasks. These include but are not limited to customer service, social media management, and research.
Outsourcing IT and Software Development to the Philippines
As the tech industry grows on a global scale, so does the pool of software developers in the Philippines. More and more graduates flood the market with specialists in various areas of web, database and app development.
With so much choice, more and more businesses are outsourcing IT to the Philippines. The cost and operational benefits of outsourcing are huge. Many companies now outsource entire development and IT teams to the Philippines.
Outsourcing IT management to the Philippines is becoming increasingly popular in the US and Europe. Especially as more business owners become aware that IT staff don’t need a physical office to maintain a high standard of work.
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