Outsourcing to the Philippines has become a powerful strategy for New Zealand companies looking to enhance efficiency, reduce costs, and access highly skilled talent. As one engineering CEO’s journey reveals, successful outsourcing requires more than just tapping into a cost-effective workforce—it demands an understanding of cultural dynamics and a commitment to building genuine connections. Here, we’ll unpack actionable insights to help business leaders make the most of their offshore teams and drive long-term success.
The Philippines has long been recognised as a go offshore destination for outsourcing, particularly for businesses in New Zealand. With a robust pool of talented offshore staff, an offshoring-friendly environment, and a cultural affinity for Western business practices, the Philippines offers an ideal setup for growing teams and scaling operations. However, for companies to achieve sustained value from their offshore teams, they need a well-rounded approach that fosters cultural synergy and strengthens collaboration.
In this article, we delve into essential strategies that New Zealand firms can adopt when working with offshoring companies in the Philippines, with tips from a seasoned engineering CEO who has successfully navigated this terrain.
Bridging Cultures for Stronger Teams
Working with an offshoring company in the Philippines opens up opportunities not just for efficiency and growth but for cross-cultural learning. Our featured CEO has seen firsthand how diverse cultural perspectives can enrich project approaches and uncover innovative solutions. However, he emphasizes that success doesn’t come solely from cost savings or increased capacity; it also requires a commitment to bridging cultural differences.
In his experience, New Zealand companies benefit from taking a collaborative approach to their offshore partnerships, integrating training and transparent communication to avoid misunderstandings and foster a united team culture.
The Role of Cultural Awareness Training
For this CEO, cultural awareness training is a foundational step. He incorporates training as part of the onboarding process for all staff members who will interact with offshore team members, focusing on the communication styles, work ethics, and problem-solving preferences unique to the Filipino workforce.
The goal isn’t to become cultural experts but to understand fundamental differences, like direct versus indirect feedback. For example, where Kiwis may be accustomed to straightforward discussions, the CEO found that Filipino staff often value politeness and diplomacy in communication. Training helps to bridge these subtleties, avoiding potential misinterpretations and enhancing productivity.
Maintaining Open, Consistent Communication Channels
Open and regular communication is central to this CEO’s offshoring strategy. Whether through video calls, messaging apps, or emails, he ensures that offshore staff in the Philippines have access to clear, consistent communication channels. Frequent check-ins are part of his management approach, establishing both trust and alignment across teams.
But communication goes beyond setting up meetings. This CEO is mindful of the nuances in language and how instructions are conveyed. By confirming understanding and encouraging feedback, he ensures that all team members, regardless of location, are aligned on goals and project specifics.
Emphasising Collaboration Over Hierarchy
Another effective strategy this CEO uses is promoting a collaborative work environment, regardless of the hierarchical structures that might traditionally exist in either New Zealand or the Philippines. He encourages active participation from all offshore staff, making it clear that everyone’s input is valued.
By focusing on collaboration rather than hierarchy, his teams operate with greater innovation and involvement. He has found that this approach fosters a strong sense of ownership among his Filipino staff, making them more engaged and invested in the company’s success.
Adapting with Flexibility and Openness
An adaptable mindset has proven invaluable for this CEO, particularly given the time zone differences and varying local customs in the Philippines. He approaches scheduling and deadlines with flexibility, appreciating the importance of work-life balance and local observances for offshore staff.
He also remains open to learning from his team members’ cultural perspectives. In his view, cultural diversity isn’t just a challenge to navigate but an opportunity to learn. This approach has allowed his teams to introduce new ideas and refine workflows in ways that improve overall project outcomes.
Building Trust Through Transparency
Transparency is a pillar in this CEO’s approach to offshore outsourcing. By setting clear goals and being open about challenges or changes, he has built a foundation of trust with his team in the Philippines. When setbacks or delays occur, he addresses them candidly and collaborates on solutions, fostering a work environment built on mutual respect and openness.
He emphasises that trust-building is also about providing constructive feedback. His Filipino team appreciates knowing where they stand, and his willingness to offer both positive and constructive feedback has strengthened the relationship and ensured continuous improvement.
Recognising and Valuing Cultural Differences
One of the final pieces of advice this CEO shares is the importance of respecting and acknowledging cultural differences. Instead of downplaying them, he celebrates these differences by learning about important practices and traditions. By taking time to understand Filipino holidays and cultural observances, he has created an inclusive environment that promotes loyalty and dedication.
Over time, this approach has strengthened his team’s cohesion, allowing them to work more effectively across borders and contributing to the firm’s long-term success.
The offshore outsourcing journey is full of potential for New Zealand businesses, particularly with the vibrant talent pool available in the Philippines. By learning from leaders who have successfully navigated these waters, Kiwi firms can achieve outstanding results from their offshoring efforts in Clark or elsewhere in the Philippines. This CEO’s experience highlights that cultural alignment, open communication, and mutual respect are the building blocks of successful offshore partnerships.
For business leaders considering or currently engaged in outsourcing to the Philippines, these insights serve as a blueprint for building lasting, productive relationships with offshore teams.
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