Outsourcing has been a growing and expanding alternative that is being employed by many companies to improve and optimize their business operations. For many companies, outsourcing has become a necessary alternative in order to adapt to the growing and expanding times, and to cope up with the high costs of operating and running a business.
Among the commonly outsourced jobs by these companies are the IT services being offered by many agencies and freelancers. Many companies resort to this option since outsourcing allows these businesses to save on operating costs and expenses as against hiring and training employees on their own. Moreover, getting their own employees would also mean that they have to spend on establishing and maintaining a company department within which those employees will be placed.
But with outsourcing, these companies are relieved from the burden of maintaining a regular workforce. Rather than looking after their employees, they could focus their efforts on the company’s main objectives while these outsourcing agencies and freelancers do the job for them.
With outsourcing, companies are able to reduce their operating costs; thus, expanding their resources to other business areas. Accordingly, businesses can re-focus their money and investments on higher-value opportunities, as well as simplify management.
Outsourcing is the best business leverage for these growing times because it dramatically improves the efficiency of the company. By hiring outsourcing professionals, companies are liberated from the burden of handling employees. It simplifies day-to-day management and reduces business risks. With outsourcing, companies can focus their efforts towards more important matters and other strategic business goals.
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In today’s IT-run world, a lot of companies are posting jobs that deal with web design and development. In addition, content writing is also in demand since this is also a vital aspect for website optimization. Apparently, by outsourcing their web development, content writing and other IT-related needs, they can increase their capacity and productivity. As a result, they are able to serve their customers and clients better.
The best thing there is about outsourcing is that it frees one’s hands from dabbling with the particular outsourced job. In addition, it frees up company resources by allowing it to minimize IT expenditures. Accordingly, there is no need to spend for equipment since one does not need to set up an in-house personnel or department for that matter.
By simply letting others do the job, one can redirect its resources into the core business of the company. It relieves the executive and administrative team from dealing with human-resource problems as well as issues that deal with manpower.
Among the best things about outsourcing is that one can save on expenses relating to training. In addition, outsourcing also allows companies to gain access to an unlimited pool of talented individuals that possess specialized IT skills.
Outsourcing is the intelligent choice for companies who seek to save on operating expenses, and focus on its core business. Through this medium, one can significantly improve the business by being able to focus on providing the best quality products and services.
Why drain your resources when you can use it on matters that really count? Relieve yourself from the burden of costly operational expenses by simply outsourcing your IT needs. Visit Outsourcing Truths for more information.
For employees in the Philippines, the 13th month pay typically received at the end of the year is indeed something to celebrate. After all, the stated purpose for the 13th Month Pay Law issued by President Ferdinand Marcos in 1975 was “so that they may properly celebrate Christmas and New Year.” That is why employees from different industries, be it food services or outsourcing, look forward to the coming of December.
Presidential Decree No. 851, or the 13th Month Pay Law, mandates all employers to pay all rank and file employees a 13th month pay on or before December 24 of each year. How is the 13th month pay in the Philippines computed? The 13th month pay is equivalent to one twelfth (1/12) of the basic salary within a calendar year. To be eligible for it, an employee must have worked for the employer for at least one month in that calendar year.
In the computation of the 13th month pay, the “basic salary” excludes overtime pay, earnings, sick leaves, vacation leaves, maternity leaves and other remunerations.
In cases where an employer withholds the 13th month pay, covered employees can direct their complaints to the Department of Labor and Employment (DOLE) or the National Labor Relations Commission (NLRC).
The 13th month pay is different from the Christmas bonus. The 13th month pay is mandated by law, whereas the Christmas bonus is paid at the sole discretion of the employer. The 13th month pay is taxable only for amounts that exceed Php 30,000.00 (Philippine pesos).
There are employers who are exempted from paying the 13th month pay, among which are government and government-owned corporations, employers of household helpers, and employers of those paid on commission or task basis. An outsourcer outside the Philippines can only be subject to the 13th month pay rule if the company has its own business units on Philippine grounds, duly registered with the appropriate government establishments. When the outsourcing arrangement is purely on a contractual freelance basis, the employer is not required to dole out the mandated bonus.
Indeed, the 13th month pay serves its purpose to lend extra financial aid to employees during the Christmas season, and at the same time boost employee morale.
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If one intends to outsource jobs here in the Philippines, be assured that electricity problems should be the least of the concerns. Like in most countries, power blackouts are not uncommon here in the Philippines. At certain times, there are scheduled as well as unscheduled power interruptions. However, the power supply here in the Philippines is stable. Ordinarily, power outages occur only when calamities, natural disasters or other mishaps strike.
Similarly, power interruptions also occur when repairs are being made. In the latter case, the public shall be notified of the scheduled power outage through newspapers and television. And in most instances, these blackouts only last up to an hour or two at the most. Thus, the production of most companies is not severely affected. Moreover, most businesses in the Philippines are already equipped with power generators that will supply ample electricity in the event of power outages.
With apprehension regarding electricity blackouts and power interruptions out of the way, Outsourcing in the Philippines is a viable option for businesses who seek to minimize their operational costs.
Why drain the company’s vital resources when you can divert it for other uses?
With outsourcing, companies no longer need to spend on equipment, or otherwise set up a department within the company. Instead, companies can get hold of the necessary manpower from specialized outsourcing agencies; thus, freeing up company resources for other important uses. In addition, companies no longer need to spend for training of their workforce. Through specialized agencies, companies can have access to skilled and talented individuals who are specially trained for the job. As a result, companies can enjoy greater profits since operational expenses are significantly reduced.
The Philippines is home to a lot of talented and skilled individuals who are well-versed in the field of website optimization, web design and software development. In addition, outsourcing jobs can be less expensive here as opposed to India.
For more on this, visit Outsourcing Truths to know more why outsourcing here in the Philippines is an intelligent choice for businesses and individuals alike.
The 13th month pay in the Philippines is one reason why every employee eagerly anticipates the coming of December. The last month of the year brings with it not only the joyous yuletide season but also a lot of bonuses.
Aside from company incentives, employers are required by law to shell out funds for their employees’ 13th month pay. The outsourcing industry in the Philippines is not exempted from this mandate. The only entities not required under this law are the government, employers of household helps and persons who hire people based on a commission-, boundary-, or task-basis.
This is mandatory under the provisions of Presidential Decree No. 851. Under such decree, all employers are required to dole out a 13th month pay to all their employees receiving basic monthly salaries, regardless of the nature of their employment and not later than the 24th of December annually. This covers all employers ranging from small- and medium-scale entrepreneurs to top-earning business processing outsourcing providers. Covered employees who do not receive their 13th month pay have the option of directing their complaints to the Department of Labor and Employment or to the National Labor Relations Commission.
To be entitled this bonus, which is equivalent to at least one month of an employee’s wage, the said employee must have rendered work for that company for at least a month during that calendar year. This payout is calculated based on the employee’s basic monthly pay divided by 12 and multiplied by the number of months the employee has worked for the company within the calendar year.
Outsourcing companies engaged in the provision of information and communications technology or information technology services are awarded incentives by the Philippine government. To qualify for these incentives, a foreign corporation may establish a local office or a wholly-owned unit in the Philippines. By doing so, these outsourcing companies become governed by the Philippine labor laws, which in turn requires employers to give rank-and-file employees a 13th month pay. So, now we know why our friends working for the biggest BPOs are happiest every December.
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