So, you’re starting to investigate an offshore team. You know what sort of roles you want to try and offshore, and maybe have some understanding of the costs involved.
These are all very important decisions that must be made, but without question, the most vital decision that you must make is where you should base your offshore team.
There are plenty of different options available to you including the Philippines, India, China, Malaysia, Thailand, Vietnam, and the list goes on.
All of these locations have their pros and cons, and it’s very important that when you begin to assess them as viable locations, you develop a framework of key attributes you need to fit with your business.
Some of the key questions we recommend asking include:
- Where are your clients located, and what time zones do they operate in?
- What type of roles are you seeking – do they need university education?
- What are the exchange rates and how volatile have they been?
- Will they be speaking with clients, and do they need to be proficient in English?
- How reliable is the tech infrastructure in the location you’re looking at?
- Are they culturally compatible?
We find these standard questions usually give you more clarity on what location best suits your business.
Here at GBSS, we work predominantly with Australian businesses, and we find that the above questions, when answered correctly, usually point to one location only – and that is the Philippines.
So, let’s breakdown why we feel the Philippines is the best location for your offshore team.
Labour rates in the Philippines are incredibly cost-effective, and with a very friendly exchange rate, you can access labour for 60-80% less than you would pay locally. Australia boasts some of the highest labour rates in the world, and this usually inhibits the ability of small to medium businesses to hire the people they need to grow their business. Adding some Filipino workers to your business can free you up to focus on your business more effectively. If you’d like more examples of the savings you can make on various roles, contact GBSS today.
- Cultural compatibility
Yes, cost savings are important, but ensuring your offshore team is a cultural fit for your business is important. Are your offshore team members going to fit within your organisation and are they going to get along/work well with your local team members? The Philippines was formerly colonised by the Spanish, Americans, and Japanese, and as such, have been heavily influenced by Western culture (and still are). They are also incredibly hospitable and family oriented, thus sharing the same values that we do here in Australia ensuring Filipinos are easy to socialise and work with. As a part of the GBSS service, our experienced team will work with you and your local team members on a change management program, ensuring your new team members are effectively embedded into your business for the long term.
- English proficiency
One of the major drawcards to selecting the Philippines as your offshore team’s destination is the fact that the country boasts an incredibly literacy rate of 70%. Additionally, many Filipinos further their education at a tertiary level, meaning their English proficiency only increases as they work towards graduation. By the end of their degree, they usually have a better technical understanding of the English language than many Western nations. Higher English literacy also means they are able to more effectively engage with your local team, and customers, if required.
- Highly skilled workforce
The Philippines has a incredibly large ‘younger’ population growing quicker than the country’s children and retired workforce, with the median age of this younger population being 23 years old. What’s incredible is that this large younger workforce is highly educated, boasting a literacy rate of 97.5%. Every single year, local universities are producing more than 500,000 graduates, all going into this large and talented talent pool – which you can access for your own business!
Imagine the type of talent you could find for your business in this pool? Highly skilled graduates that you can embed into your business (with our assistance) allowing you to focus on growing your business in a cost-effective way.
- Flexibility – from a time and management perspective
Imagine having a workforce that can work your local hours as needed due to the friendly time zone, or being able to have an offshore team working 24/7 meaning your customers never feel neglected?
That is the benefit of selecting a country with a similar time zone to Australia. The Philippines workforce is heavily geared towards working 24-hour days, and this offers unrivalled flexibility when compared to local labour limitations and hourly pay rates.
Another aspect that comes into account is the ability to shrink or increase your team due to demand/seasonality. You can just as easily shrink your team or increase it, without the burdensome paperwork or legislative requirements that might hinder you locally!
Have we convinced you yet?
These are just five of the key aspects of why we feel the Philippines should be the location for your offshore team. There are plenty more aspects that make it desirable including speed and infrastructure, data and security, and government support, but these are just the key ones from our perspective.
Importantly, and we wanted to save this until last, the people are just fantastic. They’re friendly, warm, intelligent, and caring. Once embedded into your team, they become long-term and value-adding members of your company, and if managed effectively, can deliver so much value to your business that you’ll regret not having done it sooner!
If you need more convincing, let us know and we’ll have one of our friendly GBSS team members contact you today for an obligation free discussion.