What Is Outsourcing? A Comprehensive Study of HR Outsourcing Services in the Philippines
Introduction
Businesses often look for ways to maximize efficiency and reduce costs, given that these two factors directly impact a company's success. In some cases, hiring more employees simply wouldn't cut it due to how expensive it can be. On the other hand, letting go of staff members isn't a viable option as it would affect productivity and profitability.
Outsourcing offers companies a solution to this dilemma by introducing an avenue to acquire services relevant to the business. Q2 HR Solutions, a trusted outsourcing company in the Philippines, has created this guide to explain how outsourcing works and why companies should consider it an alternative to traditional recruitment.
What Is Outsourcing?
The term outsourcing describes the practice of contracting an external provider to provide services or execute projects on behalf of a business. Some commonly outsourced responsibilities are customer service, data entry, payroll processing, bookkeeping and accounting, administrative tasks, and IT management.
Relying on outsourcing and HR services has become a popular business strategy in the Philippines and around the world, especially for smaller or newly established organizations that cannot hire additional full-time employees. If your company needs extra hands to help manage operations without going through the tedious recruitment and onboarding process, outsourcing is for you.
How outsourcing works is relatively simple: first, find an outsourcing company in the Philippines that can meet your company's needs. It would be best to look for a reputable organization with numerous clients that can vouch for its services. For instance, Q2 HR Solutions has established a reputation for providing reliable HR and recruitment solutions to companies in various industries.
Q2 HR Solutions is only one example, with other companies offering similar or unique services to their clients. The key is to set up a consultation with the outsourcing company and discuss your business needs. Doing so allows you to find the right service provider for your needs and develop a working relationship with them to get the most out of your resources.
Once you find an ideal partner, it's time to discuss the service agreement between both parties. The discussion should cover the scope of work, timeline expectations, payment terms, liabilities, and other related details.
Advantages of Working With an Outsourcing Company in the Philippines
If you look for a list of trusted outsourcing companies, you will find that many are in the Philippines. The country has established itself as an industry leader, known for its educated, highly skilled workforce, English-speaking professionals, and cost-effective services.
Outsourcing tasks that are not considered core business functions offers a host of benefits to your company, primarily if you work with a provider in the Philippines. For one, you can reduce overhead costs since you do not have to hire more staff members to complete specific tasks. The savings you build up can then be used on other expenses.
It's also worth noting that money is not the only thing you save if you rely on outsourcing. HR and outsourcing services in the Philippines can also help your business save time, effort, and resources. Since you and your team are not handling the recruitment process, you can focus on other aspects of the company that can lead you to success.
Another significant advantage of outsourcing is that you can access a world-class pool of talent. Outsourcing companies in the Philippines take the time to build a comprehensive database of professionals, assessing them thoroughly to ensure that they present only noteworthy individuals to their clients. In other words, your company can access the best and most capable professionals to complete any task.
In addition, outsourcing presents a convenient way for new companies to transition into their operations without worrying about hiring experienced staff members or dealing with onboarding processes. You can simply hire a service provider and delegate tasks as needed, giving you enough time to figure out your next steps.
Finally, outsourcing can help your business scale quickly. When your company grows, you find yourself in need of extra hands to meet the demand. Hiring permanent employees used to be the only solution, but these days you can turn to an outsourcing firm and ask them to provide the staffing you need. This makes it easier to accommodate increasing customer demands with minimal effort.
List of Services Offered by Outsourcing Companies
Like other service providers, outsourcing companies have varying specializations, so it pays to look at their offerings before committing. For example, Q2HR Solutions can perform headhunting and executive searches, workforce management, and background screenings.
Headhunting is the process of identifying, assessing, and recruiting individuals who meet the specifications of the job position. Unlike recruitment specialists, headhunters focus more on finding the right candidate for a specific role instead of combing through potential applicants. They may tap into their extensive network and contact professionals not actively looking for jobs.
Meanwhile, workforce management involves overseeing and leading existing staff to achieve the client's goals. This is usually handled by an HR expert, who designs a system to measure performance and ensure that the organization's human capital is utilized correctly.
Lastly, background screenings are conducted to verify the information provided by the applicant and ascertain whether they are qualified for a job. Outsourcing companies in the Philippines can provide background checks of candidates' education, criminal history, financial records, and other relevant data.
Types of Outsourcing Explained
HR and outsourcing services come in different forms, not including previously mentioned ones. Below is a list of the top service categories to familiarize yourself with.
Business Process Outsourcing
Professional Outsourcing
Project Outsourcing
Manufacturer Outsourcing
Process-Specific Outsourcing
Business process outsourcing (BPO) involves delegating non-core operations, such as customer service or telemarketing. This is the most common type of outsourcing. It provides enterprises access to trained professionals who can manage certain activities.
Professional services outsourcing is similar to BPO but with a touch of specialization in industries. It includes tasks related to marketing, accounting, engineering, and more. Companies needing assistance in a particular field can turn to this service as it allows them to hire qualified professionals without onboarding new employees.
Project outsourcing is a type of engagement that involves assigning one or several projects to an external provider. This is usually done when the task requires expertise and resources that your internal team may not possess.
On the other hand, manufacturing outsourcing refers to companies that outsource their production process for lower costs and greater efficiency. Businesses can either have their products manufactured by a third-party provider or look for an offshore factory that specializes in manufacturing specific products.
Finally, process-specific outsourcing involves entrusting processes essential to a company's operations. This includes bookkeeping, payroll services, and other critical functions that an organization needs to function correctly.
Finding a Reliable Outsourcing Company in the Philippines
HR and outsourcing services in the Philippines help businesses cut costs, save time, and increase productivity. However, one must work with a trustworthy service provider before experiencing these advantages.
When finding a reliable outsourcing company in the Philippines, you must look at their credentials and experiences. Some business owners make the mistake of basing their decisions solely on cost; however, this can lead to quality issues down the line. It is crucial to assess the value they can provide and compare competitive prices before making a commitment.
It is also essential to read reviews from former clients as these give an unbiased perspective of what it's like working with a particular provider. Another factor to consider is the company's organizational structure and how well-equipped its staff is in handling operations or tasks.
Keeping all of these in mind can lead you to a list of reliable outsourcing companies in the Philippines, which includes Q2 HR Solutions. We have an experienced team of professionals who understand the needs of businesses and can provide solutions based on their requirements. Reach out today for a consultation!
FAQs About HR Outsourcing Services Philippines
When Should I Outsource A Specific Task?
It is vital to outsource tasks that are either too time-consuming for your internal team or require expertise outside of the scope of what you have within the organization. By outsourcing, you can focus on critical activities and let experts handle the rest.
How Can I Avoid Pitfalls in Outsourcing and HR Services in the Philippines?
Assess the capabilities of an outsourcing company before engaging with them. In addition, ensure that all conditions are discussed beforehand, including data security protocols to protect confidential information. You may also want to constantly communicate with your service provider to ensure that all expectations are met.
Can I Interview the Outsourced Staff Before They Begin?
Yes, you can. In fact, doing so is encouraged as it helps to create a working relationship between the client and provider that fosters trust. Additionally, not all outsourcing companies are the same, so it's best to check with your provider to guarantee you can meet and interview the staff beforehand.
Conclusion
Outsourcing tasks can help businesses lower costs, streamline operations, and save valuable time. However, it's important to remember that specific steps must be taken before engaging in this practice.
By researching the various types of outsourced services available, understanding what to look for in a reliable provider, and reading reviews from former clients, business owners can find the right outsourcing company in the Philippines that meets their needs.
Q2 HR Solutions offers comprehensive HR and outsourcing services designed to help businesses in the Philippines achieve success. Contact us today to learn more about how we can assist you with your business's human resources and workforce productivity goals!
