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Outsourcing is no longer an emerging trend in business. It has matured. It is now a potent tool to enhance business performance by allowing a business organization to focus on what it does best: its core competencies. More than the 20 ~ 60% savings that the business realizes, outsourcing allows the business organization to concentrate on activities that add value to the company, to spend more time and energy on the revenue stream. This is particularly true in outsourcing software development.
Other reasons to outsource software development includes access to world-class IT resource which otherwise will take time to build. Today’s IT revolution makes it hard for non-IT specialists to evaluate anew technologies. Outsourcing allows companies to evaluate new technologies faster without investing on a software product that may not be useful after all.
Why The Philippines?
Philippines as an outsourcing destination offers the following advantages.
Economic Advantage
Salaries of university graduates in the Philippines are just about a tenth of salaries in Japan and other leading countries, hence, from the point of view of the cost, Philippines offer a very big advantage.
Very high level of English proficiency of IT professionals
English is the second state language in the Philippines. The education and training of IT professionals are all in English such that, in the whole of Asia, IT professionals in the Philippines are recognized to have the highest level of English understanding and communicative power.
Geographical Advantage
The Philippines is conveniently located centrally in the Asia-Pacific rim. It is nearer to many northern hemisphere countries like Japan than other outsourcing companies further south. Daily flights to many countries are available just in case personal contact becomes necessary.
Cross-Cultural Advantages
Filipinos are very resilient and highly capable of working effectively in cross-cultural settings. Additionally, the Philippines is involved in many cooperative economic ventures with many countries. Filipinos are very much at ease working with people from different cultural backgrounds.
Political Stability
President Macapagal Arroyo receives strong support from the business sector. More than this short term continuity of the current administration is the proven stability of Philippine democracy that has overcome several coup attempts.
Why Cebu?
Cebu is centrally located in the Philippines and offers the following advantages:
Domestic Economic Advantage
Compared to Metro Manila, the National Capital Region, economic advantages of outsourcing to companies based in Cebu are much better. Cebu has lower cost of living and lower labor cost.
Flourishing IT Business and Opportunities for IT Education
The national government of the Philippines has been pushing the development of Cebu as a hub for IT business and education. Hence, Cebu provides good opportunities for securing highly proficient IT personnel and providing continuing IT education. Further, the region provides advantageous incentives to attract IT investors.
Superior Peace and Order Situation
Cebu is the Number 1 city in the Philippines outside the National Capital Region and, if not the safest then, for sure, it is one of the most peaceful places in the country. Besides IT industries, manufacturing industries, and tourism and travel industries are flourishing in Cebu such that not only the national government but private organizations as well are working hard to ensure that peace and order in the region remain peaceful as it is or even better.
Geographical Advantages
Cebu is blessed with a wonderful natural environment and is located centrally in the Philippines. Direct flights from many countries are available. Moreover, traffic jams and pollution that the National Capital Region suffers with are absent in Cebu.
Infrastructure and Climatic Advantages
Although the Philippines is frequently visited by typhoons, Cebu lies outside the main line of the typhoon path. Thus, stoppage of work due to typhoons and floods are very rare if not absent in Cebu. Add to this advantages brought about by efforts of the national government to develop the infrastructure of the region, including new electric power plant projects and high speed cyber-highways. Indeed, Cebu is the home of industrial parks or economic zones where many foreign company subsidiaries are located.
Why N-Pax?
Offshore Outsourcing has proved to be a deciding factor for companies that offer cost and quality edge in a competitive market. With years of experience in developing quality Software Applications for the Japanese market, our success in Offshore Outsourcing relies on the word “customer satisfaction”. Offshore Software Outsourcing is much about building relationships based on trust, and mutual respect. N-PAX provides reliable, quality, and value added services to focus on your core business needs so that you are assured that a dedicated offshore outsourcing team is working for you.
Labor is so expensive in many developed countries that it is only logical to think of outsourcing to cut down cost. The problem with outsourcing however, is communication, that entails especially when the setting is cross-cultural. Cross-cultural projects are often beset with miscommunications born out of the natural tendency of people to interpret things according to their mind-set and cultural-set. Languages and a people’s use of language contain nuances and hidden meanings. Understanding these means so much for the success of a project.
Furthermore, due to cost constraints in developed countries, it is almost always the case that software products are delivered lacking sufficient testing and support. This could result in implementation problems at the client’s system. At N-Pax, this problem does not apply. Lower labor costs enables N-Pax more than enough time for complete testing and support while the development is ongoing.
With these, we at N-Pax believe that we can deliver superior product quality and stability at considerably reduced prices.