Outsourcing is defined as acquiring or availing of services and/or goods from a third-party source instead of leveraging an internal source. In simpler terms, it’s like asking someone else to do part of your job for you. In today’s world, outsourcing is important as it lets companies find talented people not just from a single locale but from all over the world to help them out with a bevy of things including accounting, IT, customer service, virtual assistant, and advertising.
In the Philippines, innumerable companies help with digital marketing, the industry of promoting products and services online. This industry has been growing for more than 20 years and rakes in enormous amounts of revenue (a staggering $32.5 billion in 2022!) and provides jobs for around 1.57 million people. But before we talk more about why it’s good to outsource to the Philippines, let’s learn how the digital marketing industry started in this country.
Brief History of Digital Marketing in the Philippines
Digital marketing in the Philippines has evolved substantially over time. At first, it was simple, like ads on websites and sending emails. But as the internet got larger and became more accessible, things started to grow. Social media platforms like Facebook, Twitter, and Instagram became popular, and businesses saw them as great places to connect with customers.
A widespread practice in the Philippines is that many companies hire third parties to do their digital marketing for them, hiring companies that specialize in the industry or veteran freelancers. This way, they can save money and avail themselves of the services of experts.
The Advantages of Outsourcing to the Philippines
Many companies are choosing to outsource their work to save money. But why do so many pick the Philippines? Below are 5 reasons why companies outsource to the Southeast Asian archipelago and like working with Filipino professionals for their offshore outsourcing needs.
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Skilled and Talented Workforce
Outsourcing to the Philippines can give companies an edge because the country is replete with smart and skilled people. Many of the 110 million Filipinos have good education and skills.
In the Philippines, there are professionals like digital marketing experts who can help with different tasks, like managing emails or social media. They’re dependable and hardworking, making them an excellent choice for businesses.
The Philippine government also focuses on helping people learn and grow. They invest in education and training, making sure workers have the skills needed. Plus, many Filipinos speak English well, which makes it easy to communicate with businesses from other countries.
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Cost Savings
Besides hiring skilled workers, companies outsource to the Philippines because it saves money. Living costs are lower there, so worker salaries are too. This means companies can get good workers for less money compared to hiring locally.
A survey by Deloitte found that most companies outsource to save money. They do this by getting extra staff when they need them. This helps them keep their business running smoothly and save money. Andy Schachtel, who runs Sourcefit, says this method works well.
But saving money isn’t the only reason. Outsourcing also helps companies expand into new markets without spending a lot. They can use the resources of a local provider without investing in new buildings or equipment.
The Philippines offers competitive wages and salary levels, making it an excellent choice for outsourcing. The country also has tax breaks and government incentives, which save businesses even more money.
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Cultural Compatibility
Another reason the Philippines is a good place for outsourcing is that its culture is similar to Western countries like the United States and the United Kingdom. The Philippines has a history with these countries, like being ruled by Spain and the United States. Now, it shares many things with the US, such as language, education, work habits, and how businesses operate.
Also, lots of big Western companies have set up shop in the Philippines. This means businesses can easily work with Filipino workers because they already understand Western culture.
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Technologically Advanced
One surprising reason companies outsource to the Philippines is because of its tech advancements. Former President Duterte saw the benefits of improving tech for Filipinos and businesses. He made it easier to do business and allowed more foreign ownership in services like telecoms.
The Philippines has lots of IT and engineering graduates, and many universities offer tech courses. Website development is big here. Filipino developers are great with languages like PHP and frameworks like Laravel. They can make websites from scratch or tweak existing ones to work better.
As SEO becomes more important, companies are looking to the Philippines for help generating leads. There’s an immense talent pool here, including SEO experts who know how to boost website visibility.
The Philippines has fast internet, one of the best in Southeast Asia. In January 2023, it ranked 82nd in mobile internet speed and 41st in fixed broadband speed. Starlink is also available, adding to the speed advantage. So, companies outsourcing to the Philippines can expect top-notch services like those in developed countries.
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Strategic Location
The Philippines is an excellent choice for outsourcing because of its location. It’s in Southeast Asia, an area that’s becoming important for global trade. Companies that outsource to the Philippines can use its location to grow and reach new markets in the region.
The Philippines also has good infrastructure, like modern phones and a strong transportation system. This makes it easy for businesses to talk to their outsourced teams and move stuff around. The Philippines is also close to other big markets like China and India, making it a hub for businesses looking to get into these places.
Conclusion
The Philippines is a top spot for outsourcing, offering lots of benefits for companies worldwide. From saving money to finding great talent, its location, time zone, government support, and culture make it a smart choice. As outsourcing keeps growing, the Philippines will become even more important globally. Don’t hesitate, to outsource your staff to the Philippines and join the success stories!
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