Outsourcing to the Philippines: Everything You Need to Know
Outsourcing to the Philippines has grown to become a major industry and is one of the top-rated outsourcing destinations in the world. Let’s take a look at the reasons why:
Technology-driven Business Progress
With the technological advancements and proliferation of the internet usage in most households, the world has become a global village. Distances and boundaries have become less significant, changing the way business is done. With so many easier, faster, and more efficient modes of communication, staying competitive is becoming a greater challenge as companies seek cheaper and more effective ways to cut costs and perform better.
Outsourcing Is a Growing Best Practice
One popularly used strategy to cut operational expenses is business process outsourcing (BPO), which utilizes the more affordable resources and talent in other locations. According to business experts, the long-term future growth and economic stability of a company is dependent on its ability to sustain its income generation and develop new customers and products. Taking advantage of the global labor market helps companies create a profitable balance between product quality and reduced production costs. This is the major benefit that outsourcing.
The Philippines as an Outsourcing Hub
Businesses can find their outsourcing partner from a number of countries that are considered prime outsourcing hubs. Among these is the Philippines, listed as one of the 5 best locations that is home to some of the world’s best outsourcing service providers.
Strong Government Support
The Philippine government is very supportive of the outsourcing industry to encourage more investors. Some of the incentives given to investors and clients include tax holidays, tax exemptions, and simplified export and import procedures. Academe is pitching in by providing training programs for would-be BPO employees.
Selecting the Philippines for Outsourcing
Business process outsourcing to the Philippines has been growing at a fast rate in the past few years. Today there are a very large number of business organizations which have invested in this growing economy. But why is this destination chosen by so many international companies for their outsourcing needs? Let us look at some of the reasons that make the Philippines top rated for outsourcing business:
- The Philippines has one of the highest literacy rates – 95% – in the world.
- Most Filipinos are well versed in the English language. It is widely spoken across the country and is considered an official language in government, business, and academe. This is a major plus for those looking for voice services.
- While the colonization of the Philippines by Americans and Spanish was unfortunate then, the country has taken this to advantage in modern times, basking in a culture that is closer to that of the west than that of its neighbors. As a result, Filipino professionals are familiar with western businesses practices.
- Outsourcing to the Philippines has grown into a major industry because of the large workforce. According to estimates, more than 10 million workers are employed in Metro Manila alone. This densely populated country has the necessary, updated infrastructure as well as the technological requirement needed for modern business operations.
- Filipinos are considered to be friendly and hardworking, traits that are important for good employees.
- Because of the low cost of living, the cost of labor is also much more affordable in the Philippines than anywhere else in the region. Outsourcing to the Philippines helps businesses to reduce costs without compromising quality.