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PH Outsourcing Remains Strong

Philippines Outsourcing Industry Remains Strong

Data from the International Labor Organization shows that working hours throughout the world declined by 14 percent in the second quarter of 2020 – a loss equivalent to 400 million full-time jobs – as a result of the pandemic. While the Philippines has not escaped its own share of employment losses in these harsh of times, the business process outsourcing (BPO) continues to thrive.

Despite connection issues, many BPOs such as Yempo were able to operate at 100 percent capacity as employees were allowed to work from home once the quarantine was announced.

Outsourcing Industry Shows Resilience

While many countries like India and China have been contending against the Philippines in this business, there are some factors that keep the Philippines outsourcing industry afloat, giving them an edge over other locations:

  1. Culture – The Philippine culture and business practices closely resemble that of the west. This makes the country almost a natural choice and prime market for global companies from the US and Europe to seek outsourcing services.
  2. Language – In other countries, the language of business can be a barrier. However, English is widely spoken in Philippine academe, business, and government. This enables clearer communication between clients and local service providers.
  3. Education – Philippines has one of the highest literacy rates in the world at around 95 percent. This allows for the Filipino workforce to higher skills sought by the Western market.
  4. Costs – Because the cost of living in the Philippines is much lower, labor costs are also more affordable, attracting more companies globally.
  5. Government – The Philippines government continues to be supportive of BPOs by providing significant incentives to encourage more foreign investment in the industry.

Government Support and Outsourcing Services

Among the incentives that make the Philippines appealing as a premier outsourcing hub are:

  • tax and duty-free importation of capital equipment, spare parts, and accessories
  • tax credits for exporters using local materials (as provided under RA 7844)
  • exemption from expanded withholding tax
  • additional deduction for labor expenses
  • employment of foreign nationals in supervisory, technical, or advisory positions

As a result, outsourcing providers can succeed in offering these services and more:

  1. Administration – To help you with your administrative tasks and duties, Philippine third-party service providers offer personal assistants or general administrative assistants to deliver ongoing or ad hoc admin needs such as organising events, functions, travel, or just day-to-day schedules. Researchers, data entry clerks, and reporting analysts can remove time-consuming tasks from your senior staff, enabling them to focus on the higher value work.
  2. Engineering – The talent pool in the Philippines is quite large and covers a wide range of technical skills and software knowledge. Supplementing or transitioning work with an offshore team can have the additional benefit of increasing focus and discipline around project requirements and deadlines.
  3. Information Technology – There is an abundant supply in the Philippines of developers and testers with experience in all current technologies, as well as technical support analysts, infrastructure engineers and service desk support staff.
  4. Startup Business – Startups have unique and time-sensitive requirements. Outsourcing companies such as Yempo have the capability to analyse your requirements to provide the best possible resources in the shortest time at a considerably lower cost.

Regardless of the type or the size of your business, Yempo has the capability to offer offshoring solutions tailored to your business needs. We specialise in assisting clients who are new to offshoring. Contact us today to discuss how we can help you.

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