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Labor Union


What is a Labor Union?

A labor union or trade union is a shared association of employees who meet together to create agreements on the conditions that affect their jobs. In history, the labor union has a difference in salaries to a higher-degree for low-skilled than for high-skilled jobs. As a result, the union is reducing income disparities.

Labor unions have a massive effect on the employment and daily lives of both unionized and non-unionized workers. Reports and studies have shown the impact of labor unions on wages, marginal gains, overall salaries, pay inequalities, and security in the workplace.

Importance of labor unions

Labor unions are vital because they tend to set requirements for education, skills, salaries, working conditions, and the quality of life of employees. Union-negotiated earnings and benefits are typically greater than those enjoyed by non-union employees. Here are other advantages of labor unions:

  • Labor unions aim to provide our country with economic justice for the workers and social justice. 
  • Labor union employees are getting better pension benefits. Not only are they more likely to get a fixed retirement payout. Their employers are also paying 28 percent more to their advantage.
  • The influence of labor unions on overall non-union employment is about as massive as the impact on total union wages.
  • Labor union workers are more likely to earn paid leave than non-unionized workers. 
  • Workers under the union labor have 18 to 28 percent more healthcare advantage and 23 to 54 percent more likely to provide employer-provided pension plans.


What is a Labor Union?
What is a Labor Union?
Outsourcing FAQ

What is Business Process Outsourcing (BPO)?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the engagement of services from a third-party provider. BPO uses various technology-enabled services to hasten the delivery of services. The business activities could be back-office such as, but not limited to, payroll, accounting, human resources, or front office jobs like customer service, sales, and marketing, etc. In the case of content providers, these business activities could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business activities use their time on core services and competencies. With this shift in focus, companies improve their current processes that may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies. Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so.

How does Business Process Outsourcing work?

When a business engages an external specialist to manage and operate some of its internal processes, it's referred to as business process outsourcing. Such ‘processes’ include customer service, accounting and finance, or sales. It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:

Cost savings: significant savings of up to 70%, leveraging the lower global salaries Global market: access to a bigger employment pool of talent Global presence: having operational across the globe increases trade opportunities Flexible workforce: reduces internal local labour and employment compliance obligations Leverage skill: leveraging the skills of other specialist companies Focus: enables the client company to focus on their core functions


Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing many millions of people worldwide. Some examples include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

It is common for small business owners to have a Virtual Assistant (VA) working for hem full time, remotely from the Philippines.

What are the different types of BPO?

The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalist, in that they offer a full range of professional services, although some specialise in certain verticals (ie accounting, or animation).


Business process outsourcing typically operates form developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting: operational, technical and specialist functions Healthcare: various functions of the backend of the healthcare and health-insurance industries Creative and content: everything from post-production of Hollywood movies to newspaper and website content Tech, IT and development: network management, web and app development and maintenance Sales & customer support: ongoing sales and customer operational support and delivery Marketing: ongoing marketing, communication and branding activities Talent and HR: externalising the management of company HR, recruitment and compliance Administration: general business administration and operational activities Top BPO companies in the world's top outsourcing hubs

A wide range of BPO companies in different parts of the world provide utmost services to their Western and local clients. Many of them have even earned awards and recognitions by award-giving bodies due to their performance on both the roles they take and on their way of taking care of the employees.

Check out the top BPO companies in several outsourcing destinations below:

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 4,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, business process outsourcing.

What is Full-time Equivalent (FTE)?

Full-time equivalent (FTE) definition

Full-time equivalent (FTE) refers to the unit of measurement used to indicate the workload of a call center agent. The employer uses FTE to track the agent’s involvement in a project or organization.

FTE can standardize wages by demonstrating the equivalent salary of part-time agents based on working full-time. For part-time workers, determining the pro-rata is by changing their working hours with the help of FTE.

Importance of full-time equivalent

Full-time equivalent is crucial for accounting purposes because it determines the wages and the calculation of company expenses to pay the employees. FTE helps the employer to develop an understanding of the performance and effectiveness of the part-time employee. 

It also plays a vital role in monitoring part-time employees since they are generally paid less and do not receive the same benefits as full-time workers.

How to calculate the full-time equivalent 

Many BPO companies are using the full-time equivalent (FTE) calculation for various purposes. The calculated data is useful for benchmarking revenues or earnings per employee. Converting the hourly wages by part-time employees into full-time equivalents may be beneficial in evaluating these metrics.

To calculate the full-time equivalent, determine the employee's scheduled hours and then divide it by the employer's hours for a full-time workweek.


What is Impact Sourcing?

What is impact sourcing?

Impact sourcing, also known as socially responsible outsourcing, is a BPO model that aims to employ people at the base of the pyramid. These are people who were previously unemployed for a long time or are living below the national poverty line. 

The main goal of impact sourcing is to improve the situation of people living in economically disadvantaged areas and at the same time provide high-quality services to both domestic and international clients. This model was originated by the Monitor Group and the Rockefeller Foundation back in 2010.

Impact sourcing companies

There are associations that help companies in different countries, such as Accenture, Alorica, and Teleperformance. Associations like the Global Impact Source Coalition and ImpactHub provide resources and assistance to companies and match the companies to developing countries according to the latter’s needs and resources.

Outsource Accelerator provides you the best outsourcing companies in the Philippines, where you can save up to 70% on staffing costs. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

What is a Freelancer?

What is a freelancer?

A freelancer is often hired for a particular job or fixed project who has the freedom to work flexible hours on these projects. Being self-employed, it is common for freelancers to handle multiple clients at any given time.

A freelancer can specialize in various project-based jobs, such as writing, graphic designing, web developing, digital marketing, and a lot more. Freelancers work remotely with usually flexible working hours, as long as they are able to meet client deadlines. One disadvantage of being a freelancer is having no certain mandatory benefits shouldered by an employer.

Freelancers can be a great addition to an existing workforce for businesses who look for cost-effective service and high-quality work. Freelancers are perfect for small to medium business owners who are looking for excellent outsource partners who can work independently and can be productive under minimum supervision.

Freelancing and outsourcing

Outsource Accelerator specializes in helping small & medium sized enterprises (SMEs), with 2-500 employees, typically based in the high-cost English-speaking world. We are the experts in transforming these businesses with outsourcing.

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.