Growing a business means adapting to new solutions as fast as you can to survive and thrive in this ever-changing business environment. Outsourcing payroll to the Philippines is one aspect that can highly contribute to the growth of your business. Though a lot of business owners from specific market segments are aware of this outsourcing solution, many of them still have yet to explore and try to test the waters and see the results.
With payroll services in the Philippines have increasing demand from local and offshore locations, payroll service providers are proactively working with its partners, and payroll system providers to provide cost-effective solutions tailored-fit to the needs of the clients. Moreover, payroll companies in the Philippines provide streamlined payroll services that can address complex regulatory compliances to process employee payroll.
The strong position of the Philippine business process outsourcing industry in the global stage and impressive economic growth are the two main aspects that foreign companies do business in the Philippines, and local businesses are increasing in numbers. As business owners look into solutions to reduce costs, increase operational efficiency and free from all the hassles of managing HR and payroll administrative functions, they use payroll service providers in the Philippines.
In this article, we discuss the market segments that mostly require one or more payroll functions based on the client’s business location and chosen engagement model.
Offshore companies
In the BPO sector, the Philippines remains the ‘call center capital of the world’ for being the most excellent in the field of customer service and telemarketing. However, there are other outsourcing domains where we are also recognized such as the IT, knowledge process and back-office, including payroll outsourcing making waves in key outsourcing markets. Offshore companies use payroll services providers in the Philippines to contract one or more administrative functions of payroll management.
Though the job tackles payroll of the client’s employees in an offshore location, our Filipino payroll specialists are well adept with a specific edition of top payroll software patterned to the client’s business setup that meets regulatory compliance and requirements.
Foreign entities
There has been an influx of business people and entrepreneurs from overseas that do business in the Philippines as they want to take advantage of the growing economy, which is one of the highest performing countries in the world. From multinational corporations to small businesses, these companies use strategic outsourcing models and services such as payroll management offered by local service providers to establish their operations fast and visibly reduce their time-to-market.
Regional players
The regional economic integration established by the members of the ASEAN countries allows a more smooth-sailing trade agreement in the region. The rise of businesses from nearshore expanding its presence in the country is one of the indicators of ASEAN Vision 2025 that is a highly integrated community. A lot of these businesses use outsourced HR and payroll services, and some require provisional representation in the local market to operate fast.
Small & Medium-sized Businesses
Our local SMBs have also grown and to be competitive in the market, they need to outsource certain business functions including, managing payroll. Every business knows in the country that payroll processing is a complex tax and sometimes can be a headache if you are not familiar with the stringent government compliances, the worst-case scenario is when you fail to submit accurate reports. Another reason why small and medium-sized business owners outsource this non-core function is purchasing and maintaining payroll software can be expensive if the budget allocation is more allotted to expand and improve your operations.
Project contracting clients
This segment has been using payroll companies to help them with administrative and compliance functions within the duration of the project. Traditionally, clients that utilize outsourced payroll services under project contract-basis are more in-demand in heavy industries such as engineering and construction, telecom, and energy. Today, it has gained in light industry, IT, and business process outsourcing.
Industries that mostly utilize payroll processing for project contract basis are engineering, construction, telecom and energy, which are all in heavy industries.
Outsourcing payroll function is not a new thing in the business environment but it needs to be carefully studied and assessed based on the challenges you are currently facing and resources available.
Every business has unique processes and distinct organizational culture that is why business owners need to find a service provider that can easily align with their organization. In our previous article, we’ve enumerated some questions to ask before acquiring payroll services in the Philippines to help clients especially from these segments get started.