Remote working has been the norm in today’s digital day and age. With the advent of digital communication, online project management tools, and the like, the technological landscape has made it possible for people from all over the world to communicate and collaborate with ease.
Because of this, the Philippine outsourcing industry has grown exponentially. According to the latest reports, the country’s BPO market has been growing - even experiencing an 8.4% increase in manpower from 2021 to 2022.
But why do businesses opt to outsource their operations to the Philippines exactly? To give you a better idea, here are 5 key reasons to outsource to the Philippines.
English language proficiency
One of the biggest advantages of outsourcing to the Philippines is that Filipinos are known for their high proficiency in the English language. This is because English is one of the official languages of the country and is taught extensively in their educational system. This training allows Filipinos to not only be fluent in English but also possess the technical and professional skills required in various industries.
A strong foundation in English also bolsters their ability to comprehend and understand the nuances of the language. This makes it easier for employees outsourced from the Philippines to communicate clearly and effectively, as well as converse with potential customers and clients naturally.
For even more proof, the Philippines has ranked consistently in global English proficiency indices. In fact, it is among the top non-native English-speaking countries in the English Proficiency Index, making them globally compatible and competitive.
Lower cost of living and labor
Another notable incentive for outsourcing to the Philippines is the significant cost savings associated with the country's lower cost of living and labor. Compared to Western countries, the cost of living and labor in the Philippines is substantially lower, which affects the salary rates and overall compensation for local employees. The wage disparity between Western and Filipino workers enables companies to access a highly skilled workforce at a reduced cost.
Aside from direct labor costs, businesses can also benefit from the lower operational expenses that come with the Philippines' outsourcing industry. The overall costs of utilities, office space, and other overheads are also cheaper in the Philippines, even if it is in major cities such as Manila or Cebu.
The cost-efficiency and effectiveness of outsourcing to the Philippines also open the possibility of expanding operations. This scalability is highly valuable for businesses that want to grow quickly, even with limited funds.
Cultural compatibility with Western countries
When it comes to business, factors such as cultural compatibility can make a huge difference. In the context of outsourcing, the cultural compatibility between the Philippines and a wide range of Western countries makes it extremely easy for them to work together.
Because of the country’s history, Western cultural elements have been ingrained into Filipino culture and society. It is also highly likely that they share similar practices and beliefs, allowing for smoother integration and communication with Western clients and customers.
While an often overlooked factor in networking and client-relationship building, the strong affinity that Filipinos have for Western media and pop culture allows them to understand their preferences and relate these in their interactions. This can significantly enhance customer experience and connect with their clientele better.
Insider insight into Asian culture and markets
Outsourcing to the Philippines offers Western businesses a strategic advantage in gaining insights into Asian culture and markets. The country's strategic location, cultural bridging capabilities, deep regional knowledge, and strong business networks provide a valuable platform for companies looking to expand their presence and succeed in the diverse and rapidly growing Asian region. By leveraging these insights, businesses can tailor their strategies to meet the needs of Asian consumers better and achieve greater success in the global marketplace.
Strong government support
The Philippine government plays a crucial role in the growth and sustainability of the outsourcing industry. Throughout the years, they have conducted a variety of initiatives and established policies designed to encourage and support foreign investment. This has built a suitable environment for global businesses to outsource their operations in the Philippines.
First and foremost, the Philippine government offers a range of incentives and tax benefits to companies in the outsourcing sector through the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI). The incentives include the likes of income tax holidays, exemptions from local taxes and duties, and simplified import-export procedures.
Tasks to Outsource to the Philippines
(Source: pexels)
With the country's well-educated and high-skilled workforce, businesses can outsource a wide range of operations - from general administrative tasks to more technical and specialized jobs. Here are some key tasks that businesses commonly outsource to the Philippines:
Customer Support and Call Centers - Renowned for their exceptional customer support services, Philippine call centers provide high-quality customer service, technical support, and help desk services through their excellent communication skills and computer literacy.
Digital Marketing - The Philippines is filled with skilled professionals specializing in SEO, SEM, content creation, social media management, and email marketing. Businesses can leverage the expertise of Filipino digital marketers to enhance their online presence, drive traffic, and increase conversions.
Back-Office Support - Outsourcing back-office functions such as data entry, data processing, transcription, and administrative support can reduce operational costs while maintaining a key element in business success.
Technical Support - Businesses can outsource their IT helpdesk and technical support services to Filipino professionals who are well-trained in troubleshooting, software support, network management, and other IT-related tasks. This allows companies to provide 24/7 technical assistance to their clients at a fraction of the cost.
Accounting and Finance - Outsourcing tasks such as bookkeeping, payroll processing, financial analysis, and auditing can help businesses streamline their financial operations.
Research and Development - With the country’s growing number of graduates from recognized universities in various fields of science, engineering, and technology, research and development tasks such as product development and market research could be outsourced to boost progress and productivity.
Businesses all over the world can benefit greatly from outsourcing to the Philippines. From gaining highly skilled employees to enjoying substantial cost savings and local government support, businesses can experience great outcomes with the high possibility of scaling their operations faster.