Why Outsource to The Philippines?

From small and medium-sized enterprises, to large Fortune 500 corporations, most businesses today have fully adopted global outsourcing as a strategic business practice. By outsourcing non-core functions, they save on costs and are able to focus on their core business and pursue strategic growth opportunities.

Where previously it was India that ruled the outsourcing industry, there are growing reasons why companies are now looking to the Philippines for their offshore outsourcing requirements.

Outsourcing in Philippines

The Philippines is in fact the one of the largest English speaking populations in the world. The country has replaced India as the top call center destination in the world. Voice services comprise 63% of the Philippine outsourcing industry; non-voice services, including IT and back office functions, are catching up fast. The Business Process Outsourcing Association of the Philippines (BPAP) reports that the industry grew by 22% to US$10.9 billion in 2011, and currently employs 640,000 people.

At present, over 600 IT-BPO companies are outsourcing to the Philippines, and this is expected to grow exponentially as more companies invest in IT outsourcing in the coming years. Given the country’s robust telecommunications infrastructure and steadily growing economy, the Philippines is well-poised to become one of the best offshore outsourcing destinations in the world.

Quick Facts About The Philippines

  • Awarded Offshoring Destination of the Year for the third time by the National Outsourcing Association in the United Kingdom
  • Approximately 3 million fresh graduates enter the job market each year
  • Has a simple literacy rate of 93.4% and a functional literacy rate of 84.1%

Has been dubbed as the “Social Networking Capital of the World” because of the sheer number of Filipino active users on social networks including Facebook and Twitter.

Cultural Affinity – Why We Speak Better English Than Our Neighbouring Countries

With any type of outsourcing, communication is critical. Compared to other non-Native English populations, Filipinos possess superior skills in written and spoken English. English is the primary language in most educational institutions. Western culture is also pervasive in all forms of media and pop culture, resulting in Filipinos able to speak English with a pleasant, neutral accent.

In addition, the dominant religions in the country are Roman Catholicism and Protestantism. Combined with our warm and hospitable disposition, this deep understanding of and affinity with Western Culture allow us to efficiently function as your offshore partner. We are able to emulate the culture and values of your onshore operations, effectively working together as a seamless component of your overall business.

Lower Costs, Bigger Savings

One of the most important factors that fuels the global outsourcing industry is the lower cost of doing business. With the low labor costs yet high quality of talent, the Philippines is the perfect outsourcing destination.

Minimum wage in the country is $8 per day, a fraction of what it would cost in Western countries. The starting pay for college graduates from respectable schools starts at around $300 per month.

What else is affordable in the Philippines?

  • Commercial and residential rentSEO
  • Utilities
  • Professional services
  • Taxes
  • Health care costs
  • Education
  • Office supplies
  • Food and Leisure

Overall, you can expect to save at least 30-40% on staffing costs by outsourcing to the Philippines.

Government Support

The Philippine government fully supports the outsourcing industry as it has become one of the main sources of revenue in the country.

Special economic zones have been established and are managed under the Philippine Economic Zone Authority. Fiscal and non-fiscal incentives such as a 4- to 8-year income tax holidays are granted to outsourcing companies.

Government agencies are also collaborating with outsourcing organizations to improve the education system and implement industry-specific training programs.

Highly-Educated, Highly-Skilled Resource Pool

The Philippines boasts a robust professional certification and continuing education system; certifications in Microsoft, Cisco, sales and customer service and other training programs are also available. We can provide staff with virtually any specialization in the Philippines.

Many of the world’s biggest companies have made large investments in their operations in the Philippines. As a result, we have a wide pool of talent that already have extensive experience at multinational corporations, producing work that meets the highest international standards.

If you have any questions or looking to outsource to the Philippines, CONTACT US today!

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