Posted by on Jun 15, 2014 in Employment | 0 comments

The use of online technology in building a workable business that is capable of being run from any part of the globe was one of the most significant changes entering the 21st century – this may practically be considered as how outsourcing, also called strategic outsourcing or offshoring, started.

Outsourcing, in business lingo, is the contracting out of a business process by one organization to another, which is otherwise known as a third-party. The third party may be located nationally or internationally (thus, the term offshoring). This type of business movement or thriving is usually resorted to due to lack of skilled or expert individuals needed to fit certain job descriptions. It can also be due to the fact that outsourcing certain company projects or services proves to be economically favorable to the both organizations (with the third party organization creating jobs besides earning profits, while the host company saving much from overhead/operating expenses as cost of employment in chosen countries is far cheaper than in theirs).

Through outsourcing, host companies get to enjoy greater control and flexibility in their budget. Rather than hiring the experts themselves, this task will be the concern of the third party company, which will also be responsible in training their hired personnel for the outsourced project. Additionally, this helps create often reliable in other nations.

One of the countries considered by many top companies around the globe, as well as by many Fortune 500 companies, as a good place where to outsource services and other concerns, is the Philippines. Besides being one of the top countries in the business process outsourcing (BPO) industry, where non- voice and, especially, call center services are concerned, the country is also an emerging top competitor in the area of IT services, which include application maintenance, software development and web design, and in many other types of services, like computer animation, medical transcription, legal services, research, blogging and content writing.

Awareness of the business culture in western countries, strong skills in the English language, high literacy and expertise in various areas, competitive labor rates, and a firmly established telecommunications infrastructure, are just some of the factors that make the Philippines the first choice of many famous firms.

Outsourcing Philippines started in the 1990s, and became more famous at the turn of the century. By 2004 outsourcing in the Philippines was a major industry, worth an estimated $1.5 billion. In 2009, after only five years, the industry’s worth has ballooned to about $9 billion.

One particular service that some companies have really been successful in is medical transcription. In 2008, 43 companies were registered as providing the service – a growth of more than 300% from the 9 companies registered in 2003. Medical transcription involves medical reports, clinic and hospital reports, chart notes, therapy/rehabilitation notes, operative reports, and discharge summaries.

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