Why Companies should consider Staff Leasing

Business process outsourcing has grown to become one of the most vital industries in the world. The back office support provided by offshoring and outsourcing companies in the Philippines and other countries has helped even the largest multinationals, such as Google, Sony, and Alibaba to grow significantly.

Multinationals that require BPO services will always look for a good offshoring company, but what companies are largely unaware of are the different methods of outsourcing. There’s full outsourcing, and there’s Staff Leasing in the Philippines, which industry players argue is the more cost-efficient and effective option.

What is Staff Leasing?

Staff Leasing is an offshoring arrangement where clients work with professional employer organizations to source, recruit, and manage a virtual team of offshore leased staff working from the country of the chosen Staff Leasing provider.

What differentiates Staff Leasing from traditional outsourcing methods is the inclusivity it provides the client during the sourcing and selection process. IT Outsourcing firms, for example, usually provide the client with their own in-house talent. Alternatively, Staff Leasing allows clients to handpick candidates through interviews set up by the PEO after an initial screening process. Leased staff are then provided with everything they need to ensure that they produce quality output. Workstations, office supplies, modern hardware and software, etc.

Massive Cost-savings

The main appeal of Staff Leasing (and outsourcing in general) has always been the lower salaries of offshore teams compared to internal employees. Salaries in countries like China and India, for example, are marginally lower than those in the U.S. and Australia.

A Web Developer with two years’ experience makes $58,400+ annually in the United States. In China, however, the same employee makes just $24,792. Across the board, offshore salaries in Asia are far more affordable than those that internal employees in U.S., Australia, and Europe.

Among the countries with lowest possible salaries is the Philippines, where labor costs are a quarter of those in China. For example, entry level talent in China makes $21,000 yearly whereas an employee with the same experience in the Philippines makes $5,300. Overall, the Philippines is among the best offshoring destinations for companies looking to save up on talent costs.

Well-educated Talent

Affordable manpower can be found anywhere in Asia, but there is always no guarantee that the output will be on-par with company expectations. This is offset through Staff Leasing in the Philippines as Filipino talent rates are not just competitive, but the talent themselves are well-educated with a wide range of soft skills.

First and foremost, Filipinos are some of the most fluent English speakers in the world, being ranked #2 in Asia and #14 worldwide by EF-EPI. The talent pool is also incredibly deep, with 700,000+ college graduates annually.

Additionally, Filipino talent is widely regarded as globally competitive. It is the best destination for IT-BPM activities, overtaking India as the top voice services provider. With a solidified position atop the IT-BPM outsourcing industry, leasing staff in the Philippines is a practical solution for many multinationals.

Competitive labor rates, the ability to choose candidates, and quality talent are what make Staff Leasing in the Philippines one of the best outsourcing methods available. KMC is a professional employer organization offering leased staff services to expanding multinationals. For companies that require offshore staff, click on the link below to get in touch with one of our Staff Leasing experts.