The Philippines has been the world’s top outsourcing destination for many international companies. Companies that outsource to the Philippines reap benefits that include cost savings, access to a large and talented pool of workers, time zone advantages, cultural compatibility, and government support.

If you want to learn how to outsource successfully to the Philippines, this article is made for you. We listed here everything you need to know about outsourcing and how you can start hiring Filipino workers to increase your resource flexibility: 

What are the 4 types of outsourcing?

There are many different ways in which companies can outsource work, but some common types of business process outsourcing include: 

1. Offshore outsourcing

This is when a company hires a third-party service provider located in a different country to perform certain business processes. This can be done to take advantage of lower labor costs or to access a pool of specialized talent. 

2. Nearshore outsourcing

This is similar to offshore outsourcing, but the third-party service provider is located in a nearby country. This can be done to reduce communication and transportation costs, or to take advantage of cultural or linguistic similarities.

3. Onshore outsourcing

This is when a company hires a third-party service provider located within the same country to perform certain business functions. This can be done to access specialized skills or to improve efficiency. 

4. Insourcing

This is when a company brings certain core business functions that were previously performed by a third-party service provider back in-house. This can be done to gain more control over the work, to improve quality, or to reduce costs.

What are the 5 different types of outsourcing strategies?

There are many different outsourcing strategies that companies can use, depending on their specific needs and goals. Some common types of outsourcing strategies include: 

1. Functional outsourcing

This is when a company hires a third-party service provider to perform specific business functions, such as manufacturing, logistics, or social media customer service. This can be done to access specialized skills or to improve efficiency.

2. Process outsourcing

This is when a company hires a third-party service provider to manage an entire business process, such as payroll or supply chain management. This can be done to reduce complexity and improve quality. 

3. Project outsourcing

This is when a company hires a third-party service provider to complete a specific project, such as the development of a new product or the implementation of a new IT system. This can be done to access specialized expertise or to meet a tight deadline. 

4. Strategic outsourcing

This is a successful outsourcing strategy that businesses use to achieve long-term business objectives, such as cost savings or innovation. This can be done to gain a competitive advantage or to access new markets. 

5. Knowledge outsourcing

This is when a company hires a third-party service provider to provide specialized knowledge or expertise, such as market research or technical support. This can be done to access valuable skills or to reduce the need for in-house training.

What are the most common reasons why outsourcing fails?

There are several reasons why outsourcing can fail, some of the most common ones include:

  • Poor communication and collaboration between the outsourcing partner and the client.
  • Lack of clear business goals and objectives. 
  • Insufficient planning and preparation.
  • Cultural and language barriers. 
  • Problems with different time zones and work schedules. 
  • Inadequate management and oversight. 
  • Poor quality of work or lack of expertise on the part of the outsourcing company. 
  • Failure to properly manage data security and handle sensitive information.

How to hire Filipino workers directly?

To directly hire Filipino workers, you will need to follow these steps: 

  • Identify your business needs and requirements, including the type of work that needs to be done and the skills and qualifications required for the job. 
  • Research and evaluate different job candidates in the Philippines who have the necessary skills and experience. This can be done through online job boards, recruiting agencies, or other means. 
  • Contact the potential candidates and request resumes, references, and any other relevant information. 
  • Review the candidates and their qualifications, and select the ones that you feel are the best fit for your business. 
  • Conduct interviews with the selected candidates either in person or remotely to further assess their skills and suitability for the job. 
  • Offer a job to the candidate you choose and negotiate the terms of employment, including salary, benefits, and other conditions. 
  • Work with the employee to develop a plan for how the work will be completed and provide any necessary training or support. 
  • Monitor the employee's performance and provide regular feedback and support to ensure that the work is being completed to your satisfaction. 
  • Establish clear communication channels and protocols for ongoing communication and collaboration between your business and the employee. 
  • Review and evaluate the employee's performance regularly and make any necessary adjustments to the arrangement to ensure that it continues to meet your business needs.

Where can I hire Filipino workers directly?

There are several ways to directly hire Filipino workers, including: 

Hire the best professionals in the Philippines

Need help on how to outsource successfully to the Philippines? ManilaPros is here to guide you every step of the way. 

We’ve helped hundreds of businesses start their outsourcing journey and build the best offshore team in the Philippines. As a result, they were able to save up to 70% on employment costs because of the Philippine’s low cost of living. 

At ManilaPros, we offer a full-service, five-star customer care for retailers. At a flat monthly fee, you will have a team of vetted and certified Pros who went through comprehensive on-brand training. We'll also provide you with a dedicated manager who can oversee your customer care operations.

Book a call with us today to learn more.