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Inexpensive Outsourcing Services in Asia
October 26, 2006


Offshoring Ends Philippine Employment Dry Spell

Knowledge and talent or intangible wealth or assets is now more valuable than tangible assets such as land, factories, equipment and energy. A comparison of the tangible and intangible assets of corporations was made in several countries, including Japan, the US, and UK and it showed that in the US, over 60% or 65% of assets of American corporations are not the factories or equipment, but intellectual property. Other countries showed similar shifts over the past decade.

Another enlightening evidence shown about the economic growth and development of some developing countries, based on a 60 year timeline, is the dramatic increase in number of high quality outsourced services in Manila and other Asian countries that coincided with the sharpest rise in economic growth. This is a clear indicator of the importance of technology and intellectual property in shaping a nation’s economic development.

So fierce is the global competition in technology that there is a new arms race in the world, not of weapons; but of knowledge economy. The creative sector occupations - in science and technology, art and design, culture and entertainment – have grown since 1980 from 12 percent of the work force to between 30 and 40 percent in most advanced countries today. Meanwhile, developing countries and regions around the world, especially in Asia, can now continue to export more than half of their scientific and engineering talent to the advanced economies through inexpensive outsourcing services in Asia.

Offshoring describes the relocation of business processes from one country to another. This includes any business process such as production, manufacturing, or services. The economic logic is to reduce costs. If some people can use some of their skills more cheaply than others, then those people have the comparative advantage. The idea is that countries should freely trade the items that cost the least for them to produce.

Utilizing offshore services is the most efficient way that a business can cut development costs and promote growth. Inexpensive outsourcing services in Asia enables businesses to build a staff of highly trained professionals that will take on the time consuming yet very important leg work involved with development for a fraction of the usual price.

Utilizing offshoring services will promote the exponential growth the business requires. The business will have the ability to contract more projects in more diverse fields. Eliminating time consuming tasks propels the business’ ability to provide clients with quality products in a shorter period. Ultimately, offshoring services work hand-in-hand helping businesses to improve the quality of their product, increase profitability, and help them expand.

For the past years, outsourcing has expanded beyond call centers and IT into almost every conceivable business processes. The Philippines graduates approximately 385,000 young professionals a year, with English as the primary mode of instruction. The Filipino workforce is consistently ranked as among the very best in Asia, in terms of quality and cost effectivity, by such international authorities as the Economist Intelligence Unit and the Swiss International Institute for Management Development (IIMD). The Philippines is the leading country providing inexpensive outsourcing services in Asia.

The demand for both skilled labor and professional employment in the Philippines is high. If one considers the number of IT graduates in the Philippines and the demand for IT professionals, the numbers look good. To attain competitive advantage and survive the stiff labor market competition, the Philippines develops a work force of skilled, competent, highly productive Filipinos who are able to cope with any change in the environment.

With the changes brought about by the globalized economy, the Philippines also pursues innovativeness.  A way to do this is by undertaking a sincere and honest analysis of the needs of the community that they serve. They are sensitive enough to adjust to the demands of the times. They develop new courses in response to and aligned with the requirements of the private sector and civil society.

Below is a comparison of two similar applicants from the USA and the Philippines, along with their projected salaries. Their level of skills, education and experience are equal; however the salaries are vastly different.

The American and Filipino applicants are both web designers, only that the Filipino is also a web developer. They both have skills in Photoshop CS2, Dreamweaver 8, Flash 8, Swift 3D, 3D StudioMax, CSS, JavaScript, HTML, Php, MySQL, Frontpage, Illustrator, Corel Draw 12 and Freehand MX. They both have a four year degree and have five years of working experience. However, the American applicant expects a yearly salary of $ 48, 000 and a monthly salary of $ 4, 000; while the Filipino applicant asks for a yearly salary of $ 10, 800 and a monthly salary of $ 900.

Offshoring, Inc, the leading American owned and operated offshore outsourcing company based in the Philippines, attests to the aforementioned studies regarding the phenomenon of business process outsourcing. Formed in 2004 by a group of American IT executives with extensive outsourcing and offshoring experience, the company is proud to have a long record of successful collaborations that have brought tremendous benefits to businesses worldwide.

Offshoring, Inc is a staff leasing company providing high qualified professionals to various businesses across the globe. The company has a huge pool of motivated professionals ranging from well-trained and experienced writers, graphic designers, programmers, media managers, quality assurance representatives, data entry clerks to contact center agents all who underwent a rigorous process of search and recruitment. Offshoring, Inc can also customize a quote the client and recruit staff not included in the list.

Offshoring, Inc aims to help businesses eliminate routine tasks and focus instead on strategic core business undertakings that contribute directly to the ultimate success of the business. With significant cost benefits and efficient management of the without having to sacrifice high quality output, Offshoring, Inc brings better profit margins, thus allowing businesses to achieve remarkable economic and executive class gains.

The prospects for full employment in the Philippines may not be gleaned simply by looking at the supply and demand factors. The Philippines also examines how they fare in the global market.  Have they achieved a high enough level of competitiveness to ensure employment security and higher employment ratio?  How are their workers recognized in terms of competency in the labor market? Do they offer the lowest possible cost of production of goods and services with the highest quality or standards?  Are they pursuing efficiency, security, and equity?

The goal of full employment requires that there be no cyclical unemployment or underemployment.  Furthermore, unemployment and underemployment are painful and enduring consequences of failure to cope with environmental change.  The goal of full employment is a vital and legitimate objective the Philippine system can pursue or dream of and can be definitely achieved through outsourcing and offshoring.

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