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Telemarketers in the Philippines reveal the most common scams in the market

telemarketing in the Philippines

Telemarketing in the Philippines is undoubtedly a growing market. As with most industries, thieves abound as they try to mingle with telemarketers in an effort to mask their fraudulent activities. As expected, their dastardly acts smear the practice of telemarketing in the eyes of civilians.
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G’day Mate! Why Aussies should outsource to the Philippines

While the contemporary business landscape has evidently changed, the fact remains that corporations must outsource in a bid to compete with their contemporaries. Yet with many locations vying for business process outsourcing (BPO) supremacy, how will Australian companies determine which BPO provider will give them the best value for their money?

Outsource to the Philippines

Should Australia outsource to PH?

The declining Australian workforce

Evidence suggests that the $42 billion Australian Information and Communications Technology (ICT) industry is in dire need of fresh talent as there are a declining number of workers in this specific field. In line with this, the Australian Skilled Occupation List (SOL) mentioned several Information Technology (IT) positions, which included ICT Business Analyst and Software Engineer. While it would be a patriotic endeavor to capitalize on young talent to augment the nation’s needs, the fact remains that as Australia continues to compete globally, it has to procure the talent it needs right now. It would therefore be more prudent to bring in talent from countries that specialize in IT-Information Technology Enabled Services (IT-ITeS). Particularly, in the Philippines.

The Philippines as an IT-BPO Stronghold

The Philippine IT-BPO industry grew significantly in the last five years, with a remarkable improvement of 69%. Experts estimate that this figure could only grow as more graduates of the discipline are expected to join the BPO scene.

A recent study funded by the Commission on Information and Communications Technology (CICT) talks about how the local IT-BPO industry contributes 4-5% of the country’s annual GDP. Aside from this, it is the largest job creator in the private sector, tallying millions of indirect hires thanks to its innovations. The report also touted that the Philippines is a mature Tier-1 destination when it comes to IT outsourcing as the country recently led the race for voice BPO and came second for non-voice services.

Outsourcing to the Philippines

Outsourcing to the Philippines

Outsourcing to the Philippines

Outsourcing to the Philippines is beneficial for Australian companies as the Philippines is a university country. In fact, 95% of call center agents in the Philippines are college graduates with degrees from complex courses, such as B.S. Computer Science and B.S. Information Technology. With the consistent training given by BPO firms and continued practice, these workers are quickly becoming experts in the IT-ITeS industry.

Finally, it is a strategic advantage for Australian companies to collaborate with Philippine-based BPO providers as this will give them a foothold as they continue to expand operations on an international level. It is always advantageous to have a partner within the targeted region as the companies would know industry trends and the market needs.

Open Access BPO provides neo captive outsourcing solutions from its operations offices in Makati, Philippines. We offer numerous Web and Digital Marketing services including Web Design and Development, Web Content Management, and Rich Media Development, among others. Learn more about Telemarketing in the Philippines when you visit our website!

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Outsourcing school buses: Progressing or Regressing?

We have discussed some arguments surrounding the outsourcing industry in the preceding articles, such as the advantages of outsourcing, when should you outsource, and how outsourcing affects the employment rate. Now, let us delve into a new case: The result when you consider that outsourcing may not be favorable for your business growth in the long run.

With business process outsourcing (BPO) penetrating offices and taking over basic functions such as HR, finance, and customer service, most service providers believe they are safe from the business practice’s clutches. But are they? Just ask the school bus drivers.

Outsourcing school busesThe disheartened drivers of Saucon Valley

The Saucon Valley School District saw itself in the limelight when its school bus drivers rallied the community for support in a bid to stop the district from privatizing its transportation operations. The district’s in-house busing operation is comprised of 35 vans and 10 buses that functions at $2.1 million for the last four years. This led district officials to find ways to improve the annual budget on transportation. Superintendent Sandra Fellin points out that although drivers are performing exemplary services, the district needs to perform its “financial due diligence.”

This “due diligence” brought about a muddle of criticism from the locals as bus driver Noreen Resetar posted a letter asking the public to support the drivers. Resetar wrote that the bus drivers will be losing their livelihood if SV’s transportation services are outsourced. These would-be displaced drivers are neighbors and friends to the community; they “LIVE and PAY TAXES and VOTE in Hellertown and Lower Saucon Township.” Parents immediately rallied on the page as one user writes that these drivers often have their own children on board and are therefore more careful than any stranger behind the steering wheel could ever be.

Board member Edward Inghrim says that his responsibility is to ensure that the board runs a “financially responsible school district.” He further adds, “I did ask, what [would it] cost to outsource this? I wasn’t looking to fire anyone.”

The grim situation is best summed up by Board Member Bryan Eichfled when he said “If we sell the fleet, we can’t go back.” Yet it remains that the future of Saucon Valley’s transportation is unclear.

More common than you think

However, it seems that Saucon Valley is not the only district looking into private bus companies to oversee their transportation operations. The school districts of Walled Lake, Bethel Park, and Palantine Community are facing the same scenario.

While the talks are still in progress, bus drivers who man these routes are worried that their jobs would be given to someone else who will not be as careful of the kids as they are. Most students are familiar with their bus drivers, and this makes younger students more willing to hop on a bus, provided it is being driven by someone they know.

How effective is it?

While the topic may ignite ire from the community, the fact remains that given the choice between savings and sentimental service, most businesses and school districts would rather choose savings over sentimentality. Though the displaced bus drivers may be put off by the decision, most of them would be absorbed by the private company, if applicable. Yet will outsourcing a district’s busing operations really result to substantial savings?

A study from think tank Keystone Research Center (KRC) revealed that privatizing a school district’s transportation could be a moot point. The data was gathered over two decades that left the study’s co-author and KRC Executive Director Stephen Herzenberg to pronounce “Handing the reins over to the private sector is not always a good bargain for taxpayers…school bus contracting is a poor bargain.”

The report points out that school districts are enticed with the idea of outsourcing as there is a lump sum at the beginning of the contract as the school’s fleet is sold. Also, contractors would initially offer low prices at the start of the bidding, only to increase the price by charging additional services and bargaining for more expensive contract renewal terms. At this point, schools would be double-guessing the merits of returning their transportation needs in-house as purchasing new school buses would be even more expensive.

Similarly, the study revealed that 29 districts that privatized their transportation needs from 1992 to 2001 experienced a 26% increase in expenditure in the last five years, in comparison with the 6% increase it incurred prior to outsourcing. This totals to an increase of about $223,861 per district per year. The state then reimburses the contracted transportation services, which equates to about $231,903 per district. This means more expenditure for the state which it takes from the taxes. And this increase in expenditure would then fall on the taxpayers’ shoulders.

In a nutshell, privatizing a school district’s transportation needs might bring more harm than good since the study reveals that it would only incur more expenses in the future. While outsourcing is typically considered as a cost reduction method that would help organizations focus on core competencies, it seems that schools would be able to save more if they just effectively plot how to utilize their fleet.

Does this mean that outsourcing is ineffective?

The answer to this question is a resounding no. Outsourcing has many merits, but like most business practices, there are instances when outsourcing is not always applicable. In this case, it is more prudent to effectively maintain the buses than to outsource the entire fleet to the private sector.

Outsourcing is an effective business practice that has benefitted countless companies over the years. Yet it can only be effective if the returns derived from outsourcing would complement a company’s savings and improved bottom line. If the expenses would be more than what would be saved, then outsourcing is definitely not the answer. Rather, organizations must look at other solutions in order to cut expenses and improve savings.

Outsourcing can lead you to great potentials should you only learn how to harness it properly. Visit us  for more information.

 

Photo credit: KB35 on Flickr.

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Premise: Outsourcing Exploits People in Developing Countries

The battle about outsourcing continues at full blast. While one of the more popular reasons why organizations outsource their business processes is to save on labor costs, it goes to follow the claim that outsourcing exploits people from developing countries. After all, these workers will accept work from the U.S. for a fraction of what organizations would normally pay Americans.

The important thing to remember is that the standard of living is different in developing countries. For example, a call center team leader in the Philippines may charge 35,000 pesos per month. This equates to $848.27/month or $4/hour. This salary is obviously lower than the $24/hour normally charged by American call center agents who earns about $4,263/month. Considering that the quality of service is the same, which would you choose?

outsourcing exploits peopleRemember that with 35,000 pesos, the Filipino team leader can pay his rent and utilities, have money for luxuries, and still have enough for savings. An example that will give you a better idea how affordable goods and services are in a developing country is when you pay $50-60/hour to get a full-body massage in the U.S. while Filipinos only pay 300 pesos or $7/hour for the same service.

Furthermore, employees in developing countries are given impressive benefits. For one, they are given health care insurance with substantial pay and frequent bonuses. They also get opportunities for promotions and incentives for showing up on time. Employees are given constant training on how to improve their skill set as well.

All these benefits and substantial pay indicate that outsourcing does not exploit workers in developing countries. It’s a matter of these workers being satisfied with a smaller pay scale than their Western counterparts, seeing as their standards of living are different. If these workers would demand higher pay, then the companies that patronize outsourcing could weigh the difference between outsourcing and having the jobs performed in-house.

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