Why outsourcing to Asia is highly advisable

OABPO Blog Team Published on February 20, 2014 Last updated on December 15, 2023

In order to remain competitive, innovative, and efficient, many companies are outsourcing to Asia as a viable solution.

Outsourcing offers numerous benefits, such as cost savings, access to specialized expertise, and the ability to focus on core business functions. When considering outsourcing options, one region that stands out as a highly advisable destination is Asia.

Asia has emerged as a leading outsourcing hub, attracting businesses from around the world seeking to harness the region’s advantages. Today, we will explore the compelling reasons why outsourcing to Asia is a wise decision for your company.

From cost-effectiveness to expertise to scalability, we will uncover the incredible value that outsourcing to Asia brings.

What Services do Asian BPO Firms Excel at?

But before we head into the different outsourcing benefits that Asian providers can bring, let’s first take a look at the different services they excel at. Asian BPO firms offer a wide range of services, leveraging their skilled workforce, technological expertise, and cost-effectiveness.

  • Customer Support: Asian BPO firms are renowned for providing excellent customer support services. With a strong command of English and other languages, they effectively handle customer inquiries, complaints, and provide solutions. Plus, they do all of this with customer satisfaction at heart.
  • Technical Support: Many Asian BPO firms specialize in providing technical support for various industries. Their skilled professionals are well-versed in troubleshooting technical issues and guiding customers through complex processes.
  • Back-Office Operations: Asian BPO firms excel in back-office functions, such as data entry, data processing, content moderation, and document management. They efficiently handle repetitive tasks, allowing businesses to focus on core operations.
  • IT Services: Asian BPO firms boast global talent acquisition for IT services as well. Some of the services they provide include software development, application maintenance, cybersecurity, and cloud computing solutions.
  • Finance and Accounting: Asian BPO firms have expertise in finance and accounting services. These include bookkeeping, payroll processing, tax preparation, and financial analysis.
  • Digital Marketing: Many Asian BPO firms specialize in digital marketing services. The most common ones include social media management, search engine optimization (SEO), content creation, and email marketing.
  • E-commerce Support: Asian BPO firms are well-equipped to handle e-commerce support services. They can assist with order processing, inventory management, and customer query resolution for online businesses.
  • Healthcare Services: Some Asian BPO firms have specialized healthcare services, such as medical transcription, medical billing, and telemedicine support.

With this variety of services, you can be sure your industry will always find a partner that will suit your needs. Now, let’s move on to the different advantages that Asian providers can give, starting with cost-effective outsourcing.

Cost Savings

One of the primary reasons why outsourcing to Asia is highly advisable is the significant cost savings it offers.

Asian countries, such as India, the Philippines, and Vietnam, boast a lower cost of living. This, of course, translates to more affordable labor rates. This cost advantage extends to skilled professionals, granting businesses global talent acquisition at competitive rates.

Through this cost-effective outsourcing, you can reduce overhead expenses related to infrastructure, recruitment, and training. This newfound cost-efficiency also empowers your company to allocate resources better and focus on core competencies.

Quality Services

Contrary to the misconception that lower costs equate to compromised quality, Asian outsourcing partners are renowned for delivering top-notch services.

The region has invested heavily in education and skills development, resulting in a highly educated and skilled workforce. Asian professionals often possess strong technical expertise and specialization in various industries.

When you outsource to Asia, you can expect the utmost dedication to quality and customer satisfaction. Many Asian companies prioritize continuous improvement, adhering to international best practices, and implementing robust quality assurance processes.

This commitment to excellence ensures a high quality of global talent acquisition. Consequently, outsourcing to Asia means your outsourced projects will be executed with precision and deliver outstanding results.

Expertise

Asia is home to a diverse talent pool with a broad range of expertise. This makes the region an ideal destination for businesses aiming for global talent acquisition. Whether you require IT development, customer service, creative design, or financial analysis, you can find experts in Asia.

Asian outsourcing partners often invest in skill development programs, keeping their workforce up-to-date with the latest industry trends and technologies. This expertise is a valuable asset for your business, as it allows you to access cutting-edge solutions within cost-effective outsourcing.

Time Savings

Cost-effective outsourcing doesn’t mean much if your business isn’t saving time alongside money. Good thing outsourcing to Asia also provides businesses with a remarkable time-saving advantage.

Specifically, the time zone difference can be harnessed to enable round-the-clock operations. When your day ends in one part of the world, your Asian outsourcing partner can continue working on critical tasks. Because of this, your projects progress seamlessly and efficiently.

This time-saving aspect applies to project delivery as well. After all, Asian outsourcing companies are known for their prompt and timely completion of projects. This enables your business to meet tight deadlines and quickly respond to market demands.

Scalability and Flexibility

Businesses often encounter fluctuations in demand, requiring them to scale their operations up or down accordingly. Fortunately, outsourcing to Asia offers the flexibility to adapt to these changes effectively.

Whether you need to ramp up during peak seasons or adjust during quieter periods, Asian providers help you do either. That means permanent staffing commitments will be the least of your concern.

The outsourcing benefits of scalability and flexibility are particularly advantageous for startups and small businesses that may experience variable workloads. Instead of investing in fixed overhead costs, outsourcing enables you to scale your operations in alignment with your business’ trajectory.

Communication

Effective communication is vital for the success of any outsourcing partnership. In this regard, Asia has made significant strides in developing strong communication capabilities.

English, for example, is widely spoken across the region, especially in countries like India and the Philippines. This linguistic proficiency ensures seamless communication and minimizes language barriers.

Furthermore, outsourcing to Asia means building effective communication channels and fostering open dialogue. Regular status updates, progress reports, and prompt responses to queries create a collaborative and transparent working relationship. These practices improve the overall outsourcing experience.

Navigating Cultural Differences

Navigating cultural differences is an essential aspect of successful outsourcing. Fortunately, Asian outsourcing partners are well-versed in working with clients from diverse cultural backgrounds. They invest in cultural training programs and foster cross-cultural awareness within their teams.

Taking advantage of the global talent acquisition in Asia grants you a smooth and respectful collaboration that bridges cultural gaps. This mutual understanding not only facilitates day-to-day interactions but also fosters a harmonious working relationship.

The Challenges Faced by Companies when Outsourcing to Asia

While Asian providers can offer numerous outsourcing benefits, some businesses may still hesitate to take this step. Understanding the potential obstacles and concerns can help address them effectively. Let’s explore some common factors that might be stopping brands from outsourcing to Asian BPO firms:

  1. Cultural Differences

    One of the main challenges businesses may face when outsourcing to Asia is navigating cultural differences. Effective communication and collaboration can sometimes be hindered by variations in language, work practices, and business norms.

    However, these challenges can be mitigated through cultural training, language support, and building strong relationships with the outsourcing partner.

  2. Data Security Concerns

    Data security is a top priority for businesses. Understandably, some companies may have reservations about sharing sensitive information with offshore BPO firms.

    It is crucial, therefore, to choose a reputable Asian outsourcing partner that adheres to international data security standards. Not only that, but the partner has to have robust security measures in place to safeguard sensitive information.

  3. Time Zone Differences

    Operating across different time zones can present logistical challenges for businesses that require real-time collaboration. However, many Asian BPO firms are well-versed in managing time zone differences. They can also adapt their operations to accommodate the needs of their clients.

  4. Quality and Expertise Concerns

    Some businesses may worry that outsourcing to Asian BPO firms could result in compromised quality and expertise. However, many Asian countries, such as India and the Philippines, have developed a reputation for global talent acquisition and have a pool of skilled professionals across various industries.

  5. Language Barriers

    Language barriers can impact effective communication and customer service. However, countries like India and the Philippines are known for their proficiency in English. This makes both countries popular outsourcing destinations for English-speaking markets.

  6. Regulatory Compliance

    Navigating different legal and regulatory landscapes in Asian countries can be complex, especially for industries with strict compliance requirements. Businesses should ensure their Asian outsourcing partner has a clear understanding of relevant regulations and industry standards.

  7. Fear of Losing Control

    Entrusting critical business functions to an external partner can sometimes evoke fears of losing control over operations. To address this concern, businesses should establish clear communication channels, set performance metrics, and regularly monitor the outsourcing partner’s progress.

  8. Initial Investment and Transition Period

    Setting up an outsourcing partnership may require an initial investment in infrastructure, technology, and training. Additionally, the transition period to onboard the outsourcing partner may require careful planning and coordination.

The Top 5 Asian Countries that Global Brands Outsource to

Despite the challenges mentioned above, outsourcing remains an excellent choice for many companies looking to streamline operations and increase efficiency. Asia, in particular, has become a top destination, offering outsourcing benefits that attract global brands across diverse industries.

Let’s take a look at the top five Asian countries that global brands turn to for their outsourcing requirements:

  • The Philippines

    The Philippines has emerged as a top destination for global outsourcing, particularly in the BPO industry. With a large and highly educated workforce, the Philippines offers excellent English proficiency and cultural affinity with Western countries.

    The country is renowned for its customer service and technical support capabilities. This makes the Philippines an ideal choice for businesses seeking global talent acquisition at competitive costs. All in all, the Filipino workforce’s strong work ethic, adaptability, and friendliness have made the country a preferred outsourcing hub.

  • India

    India has been a dominant player in the outsourcing industry for decades, particularly in IT services and software development. The country boasts a vast pool of skilled IT professionals and engineers. This makes India a go-to destination for businesses seeking cost-effective outsourcing and high-quality technical solutions.

    However, India’s outsourcing industry has also expanded to include customer support, finance and accounting, and other back-office functions.

  • China

    China’s outsourcing industry has seen significant growth in recent years, fueled by its large talent pool and competitive labor costs. The country is a prominent destination for manufacturing outsourcing, with many global brands leveraging China’s manufacturing capabilities.

    Additionally, China is becoming increasingly popular for IT services and call centers due to its language diversity and technical expertise.

  • Malaysia

    Malaysia has gained traction as an outsourcing destination due to its skilled workforce, language proficiency, and location in Southeast Asia. The country offers services in IT, finance, human resources, and back-office operations.

    In addition, Malaysia’s stable political environment and supportive government policies have made it an attractive choice for global businesses.

  • Vietnam

    Vietnam has emerged as a rising star in the outsourcing industry, driven by its young and tech-savvy workforce. The country offers competitive labor costs and a growing number of IT professionals. Therefore, just like India, Vietnam is an appealing destination for software development and IT-related services.

    Vietnam’s favorable business environment and improving infrastructure have contributed to its growing popularity as an outsourcing hub.

Summary

In conclusion, outsourcing to Asia is highly advisable for businesses for numerous reasons. With strong communication capabilities and an understanding of cultural nuances, Asian outsourcing partners offer a seamless and rewarding collaboration.

As you contemplate outsourcing benefits, consider the exceptional value that Asia brings to your business. Partner with skilled professionals, and unlock a world of possibilities to drive your business to new heights of success.

Open Access BPO is a premier provider of outsourcing services with campuses in the Philippines, Taiwan, China, and the US. Get in touch with us to learn more about multilingual services offered from our Asia locations. We also provide onshore solutions from our Las Vegas, Nevada hub.

With many of its cities consistent making it to the TholonsTop Super Cities rankings, Asia is undeniably the business process outsourcing (BPO) capital of the world.

In spite of this fact, however, some businesses still have qualms about sending work there.

What keeps them from farming out to Asia?

Various factors pull companies away from signing an offshoring deal with an Asian BPO firm.

 

smiling Asian outsourcing call center business team

 

For many companies, it’s the fear of losing control of critical operational aspects. Others doubt the vendor’s capacity to meet their expected results or produce work quality that is above or at least at par with what their in-house staff produces.

There are also emerging trends that promise of expertise and cost efficiency without the need to send operations overseas. Onshoring, for one, promotes outsourcing contracts between two local companies, thus canceling frequent travels just to check how your subcontracted tasks are being done. And since you, your customers, and your outsourced team live in the same country, you could be assured that operations would go unhampered by cultural, linguistic, and schedule differences.

Why Asia is still a good choice

Partnering with a local firm does have advantages, but these benefits are usually limited and small compared with what you can gain from a contract with an Asian business partner.

For instance, labor costs in the Philippines and other BPO capitals are significantly lower than the Western rates. Contracting a local firm may help you save on travel and communication expenses, but the savings may not be enough to make up for their workers’ high wages.

 

excited outsourcing business team in meeting

 

In terms of work quality and managerial control, Asian businesses can deliver these according to your set standards. This is the exact reason Asia became the best outsourcing destination in the first place.

Each BPO capital excels in a certain area and provides expertise where your company lacks. China, being the continent’s manpower heavyweight, is an ideal place to take manufacturing processes. India still has the throne for IT needs, but other Asian countries are also making a name in the field.

The Philippines, aside from being the leader of English-based voice services, proves to be an all-around choice by branching out geographically and focus-wise. There, call centers are no longer concentrated in top business districts, as provincial hubs are being put up to accommodate new markets, particularly healthcare, gaming, and tourism.

Conclusion

Outsourcing to an Asian country makes good business sense because of its advantage over Western locations. Choosing a specific site, however, still depends on your priorities and weaknesses you need aid in.

Open Access BPO is a premier provider of outsourcing services with campuses in the Philippines, Taiwan, China, and the US. Get in touch with us to learn more about multilingual services offered from our Asia locations. We also provide onshore solutions from our Las Vegas, Nevada hub.

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