The Philippines is now the most well-known outsourcing destination worldwide.
The country’s business process outsourcing (BPO) industry began in the 1990s and has progressed significantly since then. Outsourcing Philippines is becoming increasingly popular. It is estimated that the Philippines has increased its global BPO market share up to 10-15%, and it is likely to grow much more in the coming decade. BPO has also benefited the Philippines,
with the industry currently accounting for the country’s prime source of employment and the second-largest contributor in the foreign exchange market.
So why is the Philippines a BPO powerhouse, and what could it signify for American businesses looking for flexible outsourcing options? In this article, you will learn why the Philippines has been a popular outsourcing option.
10 Reasons to Outsource to the Philippines
The Philippines’ outsourcing industry’s success may be due to the several benefits the country provides to businesses. Here are some of the reasons for outsourcing to the Philippines and the advantages of doing so.
In comparison to most nations, the Philippines has cheaper living costs. A single individual residing in the Philippines with no family, debt, or health-care demands may earn three times the yearly income of an individual living in the United States under the same circumstances.
How will this affect the cost-effectiveness of outsourcing the work to companies in the Philippines? When you outsource your work to the Philippines, the sum of money that outsourcing companies in the Philippines will deal with you is expected to be far less than the sum that outsourcing firms in the US or other countries will quote you.
It provides you the freedom and flexibility to direct your cash toward other essential operations that your organization wants to complete. Most significantly, you will receive high-quality results at a cheap but fair cost.
The Philippines is a top English-speaking country outside the Western, and it remains so today. The country retains its strong ranking in Asia in the 2019 EF EPI (EF English Proficiency Index), coming second to Singapore. It came in 20th position overall. Foreign companies seeking to outsource work to the Philippines should be encouraged by the second-ranking of the Philippines in Asia.
Foreign companies benefit from outsourcing Philippines because of Filipinos’ command of the English language, as well as other variables. It is especially true for BPO industries that rely significantly on chat support (outsource customer service) or virtual assistance (outsourcing call center).
The Philippines, a country that the Americans, Spanish, and Japenese have conquered, still retains the marks of its heritage. People’s daily lives are still infused with Western culture, and Filipinos continue to be very versatile to other cultures. In addition, hospitality is ingrained in Filipino cultural heritage. Because of these characteristics, Filipinos are easy to get along with and collaborate with.
Forming an offshore workforce in the Philippines enables you to expand rapidly and cost-effectively without capital or equipment. You can quickly and affordably increase your workforce. Similarly, if you experience seasonal employment or your firm starts to turn for something worse, you can reduce your workforce again. You may generally negotiate small contracts and relatively flexible agreements with outsourcing companies.
A huge youthful population exceeds the Philippines’ dependent children and retirees. This young population has an average age of twenty-three years. The numbers resulted in increased labor and a highly skilled workforce with a 97.5 % literacy rate.
Annually, local colleges and universities add more than 500,000 qualified and skilled employees to the workforce. According to analysts, the Philippines would continue to profit from this youthful and skilled workforce in the future years.
Management Issues and Reduced Regulatory Liabilities
One of the adverse consequences of operating a business is exposing your operations to legal liabilities or spurious lawsuits brought by your employees. By outsourcing Philippines, you can avoid these issues because these outsourcing companies are lawfully competent, ensuring that their customers are happy with their services like outsource customer service, outsourcing call center, and maintaining excellent professional relationships. They also assist you by providing contact to an experienced human resource and management staff that can help you
set up and assign training programs, work instructions, tax filings, etc. It allows you to stay focused on your company in all instances.
The Philippines government plays a critical role in guaranteeing that the BPO business in the Philippines grows and expands by enacting beneficial laws and policies. As outsourcing activities frequently entail disclosing personal data, the Philippines government-approved data privacy legislation in 2012 to guarantee that privacy standards meet up to global standards. As a result of this law, strict regulations are in effect to secure critical personal data from unwanted access, and industries like healthcare consider outsourcing Philippines as a good option.
The Philippines’ workforce is designed to provide coverage 24/7. So, the Philippines could fulfill your needs irrespective of your firm’s timezone or your customers’ timezone.
The United States is the Philippines’ largest customer country, with a twelve-hour time gap. As a result, around 60% or more of the outsourced labor in the Philippines works the night shift to match US hours. In outsourcing companies, alternating schedules and weekend coverage are relatively common and acceptable practices.
These characteristics are especially useful in outsourcing call center and outsource customer service, where it’s customary to need help 24/7.
According to Consumer Market Report by KPMG Philippines in 2017, the country’s growing economy has increased Filipinos purchasing power. Foreign companies will profit from the development and scalability-friendly corporate environment of outsourcing companies.
The Philippine government is a big proponent of offshoring and outsourcing Philippines. Graduates are keen to work in the BPO business since western nations are willing to pay much more than the minimum pay rate for outsourcing call center and outsource customer service. Offshoring companies can hire thousands of individuals. Because it is one of the largest working sectors in the Philippines, providing the majority of the country’s employment and earnings, the government strives to keep it functioning and make favorable decisions for its best interests.
Outsource to the Philippines with Staffing and Leasing
Over the decades, the Philippines has become one of the most popular outsourcing locations due to a mix of favorable elements that are excellent for businesses worldwide. You’ve come to the perfect place if you’re looking to outsource in the Philippines. At Staffing and Leasing, we are committed to delivering the best possible outcome.
We believe that our work quality reflects not just on us but also you and that both of us deserve the best possible representation. If you are interested in outsourcing to Staffing and Leasing, email us at [email protected] or submit the contact form on our page. We are excited to be working with you!