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Outsourcing benefits companies in a very number of ways, from cutting costs, increasing the standard of their products and services to helping them grow their bottom line. This can be a fact known to both multinational companies and SMEs based in developed countries who are outsourcing aspects of their businesses, particularly to developing countries, for years. But at the receiving end of the process, how does it help the people? How does outsourcing help developing countries?

The economic impact of outsourcing to third-world countries

For over 20 years, companies in developed nations have increasingly outsourced parts of their business processes to developing countries like India, the Philippines, Indonesia, and others. This phenomenon has given rise to what’s now called remote working or, in millennial speak, being a “digital nomad.” this is often because most outsourced or remote workers today can be seen lugging their laptops in cafés or wherever they’re going or typically have their own residence offices founded at their convenience.

Non-critical business functions are passed on to economies that have lower marketplace rates, the concept of outsourcing is easy and straightforward: customer service, bookkeeping, accounting, marketing, and human resources, among others, such functions include.

Outsourcing could be a welcome concept not only for companies looking to outsource, delegate or sub-contract business activities but also for third-world nations like India and therefore the Philippines—being tapped for outsourcing jobs are the two English-speaking Asian countries whose talent pools. Outsourcing has developed the labor forces of those countries for specific industries and positively addressed the growing pct in developing nations.

In the Philippines, what has become the economic lifeline for nearly the complete nation is the outsourcing industry. Together with interchange remittances, bringing in near US$ 20 million (PHP 1 billion) total revenue, over 500,000 Filipinos are employed by business process outsourcing (BPO) companies and BPO’s are now the highest interchange earner within the Philippines. As the country’s capital region alone, Metro Manila is now a growing hub for several outsourcing sub-industries just like the call center industry, and since of this, the Philippines is now referred to as the decision Center Capital of the planet, with 16% to 18% of the world market share.

As for India, many of whom are employed by US companies, Bangalore alone is home to over 100 thousand tech workers. Across the state, 1 million people are working for US-based companies like GE Capital and Microsoft. American technology companies are outsourced to India for years. In fact, which is already one-third of the country’s workforce, and is continuously shifting a number of its critical business operations to the South Asian nation, tech giant IBM is employing 130,000 people in India.


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Addressing the social Issues

But the underside line isn’t just what outsourcing companies are after. They’re also helping stabilize communities and transform societies in third-world nations. Recognizing the positive socio-economic impact of outsourcing businesses are many governments and non-government stakeholders in developing countries.

Promoting education among impoverished communities and providing food and shelter to the homeless, for instance, information management company Convergys has the Community Action Network (CAN). While Sykes’ Global Giveback effort supports local clinical health services and good conditions, BPO giant Teleperformance is specializing in providing learning opportunities. Likewise, distributing $100,000 each to local grassroots charity organizations are three community boards of telecom company Telus, which are located within the Philippines, Central American nation, and Guatemala.

At Outsourcing Angel, we do our part too, by reinvesting our profits into community projects within the Philippines. We’ve contributed to feeding programs for hillside tribes, conducted donation drives of essential medical supplies, and have supported the efforts of Tribu Ni Bro (TNB) in their efforts to supply alternative energy generation capabilities to remote tribes. Additionally, where our virtual assistants volunteer their time and knowledge to show disadvantaged kids computer literacy skills, we are involved in a very partnership with the Virlanie Foundation. To seek out out more about or to increase aid, please visit our OALoveProject website,

Important jobs

Outsourcing can provide people in developing countries with well-paid jobs that may not be available to them otherwise. These jobs don’t seem to be just low-end, low-skilled jobs that were created to support minor business functions. Outsourcing companies are seeking professional and skilled individuals who can support mission-critical aspects of the business, they aren’t merely searching for cheap labor.

Knowing that they need employment that may support their families, outsourcing also provides workers with a way of pride and fulfillment. As most of them are college graduates who feel that they might never get jobs that would pay them US$400 to US$500 a month—the starting salary for many call centers—without this sort of opportunity, outsourced jobs are important to the folks that get them. They’re not only given employment opportunities but also an opportunity to climb up the career ladder. Confident about themselves, dignified, and optimistic, this helps create young workers.

Helping them gain the time and freedom to be with their families for important milestones and have helped them gain much financial freedom additionally, the many job opportunities that Outsourcing Angel has given to our virtual assistants. This chance to figure from the house is much cherished and makes an immensely positive impact on the lives of our angels from building their dream homes, to spending quality time with their families, to having an internet career.

For outsourced workers in developing countries, what’s out there?

Thus, outsourcing, in general, presents a bright future for India, the Philippines, and other developing countries—enriching the general economies and strengthening the economic well-being of those who are employed by outsourcing companies. Does outsourcing help developing countries? Yes, it most certainly does!