The Philippines Among Top IT Offshoring Leaders Worldwide

 IT Offshoring has become in demand now more than ever as the market shifts towards an increasingly global and digital approach.

The world is rapidly becoming digital, even before the Covid-19 epidemic as well as the recognition that working from home settings can yield results. Today, the aim of any established business is to transition their operations over to digital platforms. Startups are also bypassing traditional methods and moving to remote from the beginning. Although each company has their own method of digitalization, each path will be converged in one key area to the final goal.

Every business requires an efficient IT division to support the digitalization. The IT professionals will integrate the tools and programs your operations require in an untested and technologically advanced environment. The problem is that creating an in-house IT department could cost a lot of time, money, and even disruptive, all unfavorable elements in a competitive business landscape. This is the reason IT offshoring turns into an appealing option for companies in any size or form.

Because of the demand in IT offshoring, the leading nations in Business Process Outsourcing (BPO) and offshoring are investing massively into expanding their IT-BPO division. The Philippines, called"the BPO headquarters of the globe and is among the leading countries in this area.

What makes IT valuable in today's business landscape

The high demand for IT infrastructure and processes is not a surprise as the world shifts towards digitalization. It's not easy to find people without smartphones or other electronic devices. All of us use laptops, smartphones tablets, computers and smartphones for practically everything since it's possible to do so in the modern times. The move to rely on electronic channels and devices has impacted companies. Digitalization provides a lot of convenience for companies and their operations. Employees can enjoy more manageable workloads due to the features of automation which digital tools and software provide. However, their internal operations are not the only ones benefitting from the digital revolution. As their tools, devices and software improve, so does their reach.

Digitalization has opened the door to globalization, allowing businesses to connect more with customers around the world. It's easier to reach out to customers due to digital channels like social media, eCommerce platforms, and even websites. Expanding globally is possible even if the company is still focusing on the local market.

The IT department of a firm is responsible for making sure that the digital infrastructure runs seamlessly, allowing for faster processing of information and data by computer software. Establishing an internal IT department becomes a critical step towards businesses operating with that in mind.

The advantages of IT offshoring are an attractive option because of the following aspects:

Cost-efficiency

Offshoring and outsourcing solutions are well-known for their advantages in terms of cost savings. Companies must be cost-effective to ensure that they have space in their finances to fund expansion and growth plans. Offshoring IT functions can help companies save money on nearly everything required by the division. Hiring and recruiting in-house IT specialists means massive cost of labor. The tools and equipment required for the IT division will also take up a lot of budget. IT offshoring allows corporations to save up to 70% on all IT-related costs including the professional income and compensation plan.

The ability to access Global Talent

If you're not having an issue with funding local IT experts, then the labor market may be the issue. IT specialists are in high demand all over the world particularly in countries that are business-friendly. This results in higher cost of labor, which puts a lot of small and medium-sized companies in a difficult spot. Furthermore, large corporations are boosting their IT departments, and bringing more workers to regional labor markets. The result is that the lack of skilled workers could be a serious threat for businesses. IT offshoring can allow businesses to broaden their recruitment efforts, reaching corners of the world in which talent is plentiful and the costs are less.

A Major Step in the Right Direction Digitalization and Globalization

IT offshoring affects both components in ways that internal IT divisions will not. The IT division's role is to help companies thrive by embracing technology, which allows them to be successful globally. Offshoring's primary purpose is to create an operational branch in a different country for your business, which implies that all communication and operations take place electronically. Furthermore, globalization is a more achievable goal with your offshore team establishing a presence in a foreign market.

These benefits make IT outsourcing as a more advantageous option than hiring employees in-house. Still, there remains the issue of where to create an IT offshore team. Among the many countries offering BPO products, the Philippines is increasing rapidly in the IT sector.

The Philippines' Steps to Strengthening the IT-BPO Industry


The Philippines is among the top countries globally in terms of offshoring solutions that are of high-quality. The massive BPO industry is one of the strongest economic pillars of the nation which provides over 1.3 million jobs for Philippine professionals and over $30 billion in economic output each year. There are many branches of the Philippines and the booming BPO industry, and one of them specializes in providing foreign clients with offshore teams working in IT.

The IT-BPM industry ranks the Philippines top in the world for voice-related services and holds 13 percent of the global market share. In the year 2020 the Philippine IT-BPM market was worth $26.7 billion in revenue. This was all achieved despite the difficulties of the pandemic that is sweeping the globe, with the Philippines taking a more significant loss than other nations.

However the Philippines made significant progress in March 2022. Stakeholders and businesses in the IT-BPM industry offer their support for the Philippine Economic Zone Authority (PEZA) to keep the disruption of economy zone growth in Metro Manila. Should the ban get removed, BPOs can set up offices in PEZA-accredited structures to speed up rural development giving more room for expansion and growth for BPO firms. In turn, foreign clients can benefit from setting up offices and infrastructures.

The Philippines is close to ending the threat of Covid-19 epidemic within its border areas. The national government recently placed Metro Manila and 38 other cities under Alert Level 1 which is the loosest restriction since the start of the pandemic. The federal government has always been vocal and active in its support of the BPO industry. BPO firms can ask for employees to return to offices, enhance services for clients and implement techniques and strategies employed in the event of a pandemic. These new developments are what make IT offshoring to the Philippines an excellent solution to ensure the future of clients.

Conclusion


It is believed that the Philippines' BPO industry is ready to take off following a long time under the tight pandemic lockdowns. IT-based BPM, for one, has already begun to climb the world rankings despite the limitations. It is important for customers to work with the right offshoring firm to ensure optimal results.

iSupport Worldwide is one of the leading offshoring companies in the Philippines. Its 17 years of exceptional service resulted in significant growth and success that enabled it to prosper despite the epidemic.

If you need IT offshoring services for your business, schedule a discovery call with usto discuss the ways you would like to create your offshore team in the Philippines. Do you need to set up an IT offshore team and office quick? We can build it in 30 days! Let's talk!


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