Top 3 Outsourcing Countries in 2019
Over the past years, business process outsourcing (BPO) to other countries has increasingly become a common enterprise practice. Not only has outsourcing helped businesses reduce costs, but it has also helped them become more competitive by allowing them to tap into the best human resources around the world. What countries serve as havens for companies that offer outsourcing services? Here is what our research found:
“The Philippines continues to be the largest location for delivery of contact services in the rest of the world. So as an outsourcing destination, it continues to dominate the No. 1 spot as a country,” according to Contact Center Association of the Philippines (CCAP) chairman Benedict Hernandez in the news site Philippine Star. Hernandez cited research by The Everest Group which revealed that the Philippines claimed 16 to 18 percent of all outsourced services worldwide in 2018.
Locally, the IT and Business Process Association of the Philippines reports that the outsourcing sector has grown to contribute 0.075% of gross domestic product in 2000 to 8-9% in 2017, with revenues of $24.5 billion that year. Furthermore, the sector has become the second most important income contributor to the economy, next to remittances from overseas workers.
Research by A.T. Kearney also touts India as vying for the top destination for outsourcing due to an affordable workforce and congenial business conditions. Being one of the largest populations in the world, India offers a huge pool of human capital at comparatively lower salaries. The country has a good infrastructure and is supportive of all kinds of business activities. It has mostly been popular for its software and computer programming industry. Several global players outsource their business processes especially the software-related activities to this country.
Poland has transformed itself to become a top outsourcing software development location in Central and Eastern Europe. This fast-growing economy offers high literacy rates, a multi-talented and culturally mature workforce that is ready to work in an international environment. Confidence in the economy has grown so that global companies have expanded business in this country, according to the same A.T. Kearney study in 2017.
What Makes the Philippines Among the Best Outsourcing Destinations?
Foremost, it is a highly educated nation with plenty of talented and skilled individuals willing to work with dedication. Its history of being colonized and strong ability to adapt has made it a top choice for businesses that want to set up production facilities or to hire skills. Fluency in the English language as well as an affordable but high-quality workforce makes it a lucrative destination. The Philippine government strongly supports the sector and provides the necessary framework and legal protection to create a beneficial. Below are other popular reasons that make the Philippines a sought-after outsourcing country in the world:
- Cultural Proximity
A look at the history of the Philippines would show that it has been under the Western influence for a very long time. It was a Spanish colony for 400 years, and a US colony for almost 40 years. While it is located in the Southeast Asian region, the country’s business, lifestyle and academic practices show marked and strong influences of English-speaking nations.
- High English Proficiency
A large percentage of Filipino professionals are well-versed in the English language, which is designated as an official language along with Filipino. This proficiency in the non-native language gives them the advantage of effective communication and understanding, which is important for Western companies that want to build outsourcing partnerships in this country. The government also promotes linguistic proficiency and ensures English is prominently spoken in academia, media and business activities.
- Literacy Rate
Filipinos are ranked among the topmost literate nations in the entire world. According to the latest surveys, approximately 96.5% of the population is literate and has undergone formal or informal study. Educational qualifications and professional studies enable them to master different business skills and processes.
- Economically Stable
According to various international and national studies, the country has strong economic potential for the future. Through its effective investments in the field of technology and infrastructure, the country has been able to create a favorable business environment for foreign investors as well. The country is promoting its talented population and making further progress in making it a business hub, which is positive for future generations.
- Reasonably Priced Human Capital
One of the key factors that places the Philippines rank among the best outsourcing countries in the world is affordable labor, compared to elsewhere in the world. Although the human resource pool is talented and educated, they strive to provide better services for more competitive salaries. This helps shrink functional and overhead costs for businesses, making outsourcing partnerships attractive. There are many professional companies ready to serve your needs.
One award-winning company that offers solutions in outsourcing is Yempo. To learn more about how Yempo can grow your business, email us.