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10 Reasons to Outsource to the Philippines

    Home Blog Digital marketing 10 Reasons to Outsource to the Philippines

    10 Reasons to Outsource to the Philippines

    Digital marketing, Online marketing, Outsourcing

    Today, BPOs are continuously growing in number around the world. So, businessmen’s success on this trade basically depends on the location of their businesses. One of the most popular outsourcing destinations for years is Philippines. To sum up the reasons why, below are a few factors that substantiate this claim:

    1. Cultural Compatibility

    The Philippines has a long history of colonisation. Initially, the Spaniards colonised the country in 1521 to 1898 and secondly the United States, from 1899 to 1946. Clearly, the effects are still embedded in the Filipino culture. This is evident from the education system to the country’s form of government.

    2. Cultural Adaptability

    Filipinos are highly adaptable. They can work with diverse group of people and requirements. Basically, they adapt to different cultures, situations and work environments. Employees, especially in the BPO industry, follow company schedule half the world away. SO, most staff work at night or at wee hours.

    3. Cost Savings

    There are significant cost savings in outsourcing tasks to the Philippines. The cost of living in the Philippines is about half the cost of living in Australia. Wages for white collar workers in the Philippines is around 20% of Australia. Hence, any cost savings extend to other business-related expenses such as office rental, utilities and third party services. For more information on the cost of outsourcing to Bureauserv, please get in touch with us.

    4. Highly Skilled and Available Workforce

    The 2015 UNESCO Institute for Statistics (UIS) estimates the Philippine literacy rate at 96.3%. According to Cushman and Wakefield, the Philippines graduates are English proficient. In fact, some public and private institutions offer special skills training for people who wish to work in the BPO industry.

    The growth of the BPO industry has changed the perception of most Filipinos. In the early days, people work in BPO companies because of lack of employment options. Today, a career in the BPO industry is a highly coveted option. This attracts educated and trained professionals to bring their diverse experiences and skills to the industry.

    5. Language

    The Philippines is one of the largest English-speaking countries in the world. It has a national English proficiency rating of 92.5% (Cushman and Wakefield, 2015). In fact, English is an official language in the Philippines. It is schools’s , from primary to post-graduate. Also, it is also the preferred language for textbooks, court decisions, business correspondence, and print and broadcast media. English movies and television shows are not subtitled. This proves that Filipinos values the English language for functional and practical reasons.

    6. Good Track Record

    The BPO industry in the Philippines grew exponentially in the past decades. The 2016 A.T. Kearney Global Services Location Index (GSLI) ranked the Philippines second to India in terms of global outsourcing activity. Consequently, the BPO operations to minor cities all over the country improved infrastructure, environment and tax collections in the country.

    7. Economic Growth and Stability

    The Philippines is among the emerging markets in Asia. The World Bank and Asian Development Bank both reported continuous strong economic growths in 2015. Overall, this projects a 6% growth in 2016.

    8. Government Support

    The Philippine government demonstrates support to the BPO industry. Deregulation of telecoms, improvement of power supply infrastructure, and establishment of Philippine Economic Zone Authority (PEZA) all helped. BOI accreditation grants fiscal and non-fiscal incentives such as income tax holiday to BPO players as well. Also, the Technical Education and Skills Development Authority (TESDA) extends aid with government-sponsored training programs.

    Further, in his state of the nation address, President Duterte pushes for foreign ownership expansion and reduction of taxes. Both initiatives further strengthen the business sector and foreign investments in the country.

    9. Infrastructure Development in the Philippines

    In 2014, the World Bank cited lack of infrastructure — transport, energy and communication — as the foremost development obstacle in the Philippines. Hence, government efforts to improve infrastructure in the past two years. In fact, these improvements will continue with the current administration. To conclude, President Duterte allocated up to 7 percent of the budget for small, medium and large-scale infrastructure projects.

    10. High Overall Attractiveness

    The Philippines continue to do well in terms of overall attractiveness as a BPO destination. In 2015, Cushman & Wakefield, the world’s largest privately held commercial real estate services firm in New York, came up with a comprehensive global report “Where in the World? Business Process Outsourcing (BPO) & Shared Service Location Index”. Based on their analysis of the risks, costs and conditions, the Philippines comes as a close second to Vietnam.

    In sum, A.T. Kearney, publisher of GSLI since 2004, reports that Philippines is seventh place of 55 BPO destinations. The metrics were financial attractiveness, business environment, and people skills and availability.

    Given these points, and to know more about outsourcing in the Philippines, explore some options for your business with us or call us on 08 6500 9777.

    Digital Marketing, Offshoring, Outsourcing, Outsourcing Philippines

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