An Introduction to the New World
The New Day Reality and Outsourcing
The virtual world was becoming an overwhelming reality before the Covid-19 virus and with the virus, it has become everyone’s reality. There is no turning back. GoToMeeting and using many technological platforms for offices and business have become the norm. For the younger population now, the more they are glued to their smartphones and technology in general which means this new world is normal for them.
So where do we go from here? We must be in acceptance or we cannot survive especially for the small to medium-sized businesses in our new day world. Large companies have been in the world of outsourcing for many years now, and we will give the history of overseas outsourcing which is huge and has been that way for quite some time.
What is Outsouring?
So you may be wondering, what is outsourcing? Outsourcing is a practice wherein companies hire overseas companies who provide human resource to perform specific tasks such as customer care services, telemarketing, data gathering and any kind of tasking needed. Technical support has been one of the bigger fields that sometimes includes dispatching tasks which in simple terms involve taking care of tracing workers and their activities in the field. Connecting field employees with customers is a big role - an example is being in the technical repair industry.
To help align an offshore team and home office (usually US based), Management Teams are provided depending on the size of the project.
Often, a Virtual Secretary (Virtual Assistant) will fulfill all tasks needed by an employer. And to be clear with the theme of this writing, the direction nowadays is outsourcing overseas. India was the first big wave as they are highly intelligent workers and are excellent with technical support type of tasking. The second wave and the world leader now, in my opinion, would be the Philippines with an English speaking population and general immersion and long history with the US, there is a natural advantage with less language barriers. Also, the nature of the workforce there is very pleasant with great attitude. Mostly, those who are employed in the BPO are often college graduates.
The term "Outsourcing" has had a negative connotation, however, it has grown immensely popular over the past decade since many companies have grown to have specific needs with rank and file positions which are transients in the American market with huge turnover rates. Often, these are young adults in America. An example would be a customer service representative in the US makes between $12 to $15 an hour and they stay at these jobs short-term.
In the Philippines, at $7 to $10 an hour, depending on position and skill level, is a net net cost to a company. No Social Security and health insurance cost and other cost to the American client. And these are desired positions as well in outsourced countries with room to move from rank and file positions to management.
The cost of living being much less in the Philippines and India, outsourcing can create very good income for BPO workforce.
My family owns a company in the Philippines and in all fairness, there are many countries other than India and Philippines - such as China, Romania, and Costa Rica for Spanish speakers. But to repeat, the Philippines has become the world leader in outsourcing.
Large US companies outsource other types of work as well such as legal related tasks, human resources, and financial functions such as bookkeeping and payroll. Companies can even outsource an entire division such as an entire IT department or particular parts of a department to fulfill the necessary roles.
So to sum up some of my key points, Outsourcing: