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The Difference Between Outsourcing and Globalization

04 October 2021

Outsourcing? Globalization?

These are some words that have emerged in this generation when the Internet and the breakthrough of modern technology are unstoppable. And if the topic is about the economy and trading. Sometimes, people tend to interconnect these two words because of their roles. But in some ways, they have their functions.

Globalization is defined as the speed up of interdependence, movements, and exchanges of the world’s economy, technology, cultural practices, and services across the globe. Due to this, different countries have built economic relationships to facilitate these movements, and it started centuries ago. One of the results of globalization is, it promotes and increases interactions between different cities and demography around the world.

Outsourcing is a part of globalization. And outsourcing customer service is a result of this business strategy and arises due to the unceasing progress of the Internet. Outsourcing is a business process of hiring external staff who will perform tasks and jobs that are normally done internally. In truth, this process already existed decades ago. But it was only formally recognized as part of the business during the 80s. Through outsourcing, online customer service becomes accessible, not only for big companies. But it becomes beneficial to start-ups because of its cost-effectiveness. Start-ups and small companies can provide good outsourced customer service with the help of outsourcing. The outsourcing partner will provide almost everything–efficient and qualified staff, office and equipment, and even HR matters.

Through outsourcing customer service, businesses could earn more profits and revenues because they are only spending fewer expenses for labor and operational costs. Outsourcing in the Philippines is a booming industry because of the trust and credibility the country earned from many countries, such as the US and UK. Companies from these countries want Filipino customer service agents to handle and assist their customers around the world. The top reasons are Filipinos’ high English proficiency, flexibility, and hard work.

Outsourcing of customer service runs like this: companies in the United States agreed with the outsourcing firms in the Philippines. An outsourcing partner in the Philippines will handle tasks or services, such as online customer service. Companies in the US allow their partners to provide a customer service team to take and assist all the queries, complaints, and other concerns of the customers concerning the brands they purchased. With this, the Philippines belongs to the top countries in the Business Process Outsourcing industry. Many international companies decided to transfer their business tasks to the country. Other business functions that can be outsourced in the Philippines are Information Technology, virtual assistance, graphic designing, content management, influencer marketing, and many more.

Several factors to consider why globalization and outsourcing are interconnected to each other. One reason, they are the good results of the continuous development of the Internet and modern technology. Another reason, globalization and outsourcing of customer service are the main pillars of our economy and businesses to be more productive and accessible. They help the countries to be connected and do business that both parties will benefit from. It only proved that outsourcing helped the expansion of globalization.

Achieving global business goals is attainable, and they help each other’s countries be more competitive worldwide.

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