No country in the world has embraced the concept of outsourcing back office support services like the US. Despite well-publicized concerns about the effects on the domestic employment market, US companies continue to outsource back-office functions to offshore providers. According to a recent study by IBM, among those US startups that choose to outsource back-office functions, 27% of them express the intention to save costs, while 73% of them see back-office outsourcing as an essential component in business development and optimization. This study reveals that US startups want to outsource back-office functions to develop their day-to-day operations and achieve business growth.
The Importance of Back-office Outsourcing
Back-office outsourcing is the business activity of transferring a company’s administrative functions to a back office support company. It helps enterprises and organizations in delegating administrative jobs such as data management, payroll and accounting, and marketing to ensure sustainable and efficient business operations. With this support, business owners can maximize the full potential of their resources which leads to business success. According to a recent study by a US-based firm, Jumpstart HR LLC, US companies can save 15-25% by outsourcing back-office tasks as opposed to having an in-house HR department. Moreover, SMEs in the US with less than 100 employees can enjoy cost-effectiveness, with an estimated 55% in savings by outsourcing back-office services.
Philippines Still a Favorite for Outsourcing Back-office Services
While some companies and organizations in the United States may be looking at the opportunities in domestic outsourcing, the attraction of offshore destinations is growing. The Philippines is one of the best countries that has a superb way of establishing and streamlining a customizable range of back-office support services. In fact, a full 75% of the $23 billion BPO industry in the Philippines comprises outsourcing firms serving US companies. For SMEs and startups in the USA wishing to embrace outsourcing back-office functions, the Philippines is still a superb choice for procuring back-office services.
Why US Companies Should Outsource Back-office Support Services in the Philippines?
Many companies in the US believe that the Philippines provides one of the best back-office support services in the world. In fact, doing it also offers a lot of benefits. Here are the top four reasons why US companies should outsource back-office support services in the Philippines:
- Cost Saving
Since the cost of living in the Philippines is lower than in most western countries, US companies can outsource back-office tasks for a fraction of the price it would cost to hire specialists locally. That’s why the Philippines is the best place to outsource back office support services for US companies wanting to save money and focus on
- Access to a Larger Pool of Filipino Talents
The Philippines has a huge talent pool of back-office support experts and professionals. For instance, a back office support company in the Philippines hires only the best and most efficient employees capable of handling intense back-office tasks. The Philippines’ BPO industry is also expected to experience a headcount growth of 5% and revenue growth of 5.5% from 2021 to 2022.
- Increase in Output Efficiency
Sending back-office tasks to a back office support company in the Philippines means your in-house team will have more time and project scope to take on various higher-value work. Doing this, you will notice a drastic increase in productivity levels within your in-house teams.
- Achieve Business Growth
When sending time-consuming tasks to an offshore back-office support team in the Philippines, your in-house team will have more time to focus on increasing profits, business growth, and even development opportunities. The additional capacity your in-house team gets from your offshore team’s support means you can grow your business sustainably.
Outsourcing back-office support services in the Philippines provides a lot of benefits. Many US companies are getting the right support from various back-office support teams in the Philippines and the result of their collaboration is off the charts. Other western countries such as Canada, the UK, and even France, as well as other countries such as Australia and New Zealand, are also looking for a back office support company in the Philippines to help them with their back-office needs.
Do you want to outsource back-office support services in the Philippines? We’ve got you covered. Markable Solutions have a well-trained team composed of Filipino professionals who are trained to support organizational and auxiliary processes. Let us help you with your administrative activities so that you can focus on the core operations of your company. Call us now!