Outsourcing has become a popular business strategy for companies of all sizes to save on costs, increase efficiency and access a global talent pool. The Philippines has emerged as one of the top outsourcing destinations, offering a range of benefits to businesses that are hard to match. From time difference not being an issue to modern infrastructure and access to new markets, the country offers a unique combination of advantages. In this blog post, we will discuss ten reasons why outsourcing to the Philippines makes business sense.
1. Time difference is not an issue
Filipino employees are willing to work shifts even if it means working at night, on holidays and in different timezones to accommodate clients regardless of where they are located in the world. In Australia, the Philippines actually has the same time zone as Perth and is two hours behind Brisbane, Sydney and Melbourne. Flexible schedules also allow for increased operating hours, particularly in areas like customer service. Need a 24/7 contact centre or interested in having part of your team or certain team members work opposite hours to your onshore team? Filipinos are happy to help.
2. English language proficiency
The Philippines ranks 59th out of 112 countries in Education First's 2021 English Proficiency Index (EPI)(1), with a score of 592. The country's English competency is ranked 18th out of 122 nations and is second only to Singapore in Asia, with a score of 635. As English is one of the Philippines' official languages and is used across its educational systems, its large overseas workforce often returns with foreign language skills beyond English. The EPI study measures global workers' English competency, and the Philippines' high ranking suggests it's a prime destination for outsourcing and a favourable location for businesses seeking English-speaking professionals.
3. Highly skilled talent
Despite popular belief, business process outsourcing in the Philippines offers more than just call centres. Providers offer talent in various fields, including human resources, finance, eCommerce, web development, and digital marketing. The country boasts excellent universities and a young population, resulting in highly motivated graduates with international education standards. The Philippines' legal, financial and government systems are based on the US, making it easy for Western companies to work with Filipino professionals. Filipino employees are resourceful, fast learners who easily adapt to new systems, processes and workplace situations, requiring minimal supervision when given clear instructions. These attributes make the Philippines an attractive outsourcing destination for businesses seeking highly skilled and adaptable talent.
4. Excellent work ethic
Filipino teams are highly sought after by business owners for their excellent work ethic, integrity, loyalty and service-oriented mindset. They foster a friendly working atmosphere and value both time and integrity while showing respect for individuals within and outside of work. Filipinos have a strong sense of responsibility and professionalism, while still knowing how to have fun. They work well under pressure, thanks to their patient and calm demeanours. Their respectful nature is evident in their interactions with managers, colleagues and clients, generating success for outsourcing teams in the Philippines. The positive attitude and values of Filipino workers make them an ideal choice for businesses seeking talented and reliable professionals.
5. Quality yet cost-effective
Filipino talent is highly valued for their commitment to producing quality work, as evidenced by the outstanding business results of outsourcing companies in the Philippines. Despite being a low-cost alternative for businesses, the country's workers are known for their ability to deliver quality work. The difference in staff costs, benefits and operational effectiveness makes the Philippines an attractive location for outsourcing and growing an offshore team. The cost of living and doing business is roughly 50% lower than in most Western countries, providing significant cost savings of up to 70% on employee costs alone. Furthermore, many outsourcing companies in the Philippines provide employment opportunities to support local Filipinos and their families, contributing to their overall standard of living.
6. Strong government support
The Philippine government recognises the outsourcing industry's significance and role as a major revenue generator in the country. It provides strong support and infrastructure for outsourcing companies and businesses who want to set up their outsourced team in the country. To maintain its position as one of the top outsourcing destinations, the government has partnered with universities to create business process outsourcing (BPO) specific curricula to prepare the future workforce. They also provide funding support for call centre training through a voucher system from the Technical Education and Skills Development Authority (TESDA). Tax and non-tax incentives are also available to encourage foreign investment. Additionally, a national Information and Communications Technology council has been created to oversee and promote the growth of the industry.
7. Cultural compatibility
The Philippines' rich history of being colonised by foreign powers such as Spain, the United States, Japan and Portugal has shaped its culture and character. Filipinos have adopted western cultural traditions and lifestyles, making it easy for them to communicate and build relationships with their foreign partners in the business process outsourcing industry. This adaptability has given them an edge over other nationalities in providing excellent BPO services.
Filipinos are known for their warmth, hospitality and generosity of spirit, making them easy to work with. The country's cultural diversity has created a society that is social, friendly, motivated, hardworking and customer-focused. These traits make the Philippines an attractive destination for businesses looking to set up an outsourced team.
8. Access to new markets
Outsourcing to the Philippines offers businesses access to new markets and customer bases. With strong cultural and linguistic ties to neighbouring countries like China, Japan and South Korea, the Philippines provides an excellent opportunity for businesses to expand their operations and tap into new markets. Additionally, the Philippines boasts a large and growing middle class, making it a significant consumer market in its own right. By outsourcing to the Philippines, businesses can leverage the expertise and experience of local professionals to navigate the complexities of the local market and gain a competitive edge. With a strong focus on customer satisfaction and service, Filipino outsourcing providers are well-equipped to help businesses grow and succeed in new markets.
9. Modern infrastructure and technology
The Philippine government has made significant investments in infrastructure and technology to support the growth of the outsourcing industry, including high-speed internet connectivity, special economic zones and IT parks. These investments have created a hub for business process outsourcing (BPO) and knowledge process outsourcing (KPO) services, providing state-of-the-art facilities and cutting-edge technology to support these industries. The country's robust telecommunications infrastructure ensures reliable communication channels for businesses, and the availability of high-speed internet in urban areas facilitates efficient collaboration between outsourced teams and their clients. These modern facilities and advanced technologies enable outsourcing companies in the Philippines to provide top-notch services to clients, making it an ideal destination for businesses looking to outsource their operations.
10. Flexible operations
Outsourcing to the Philippines allows businesses to operate 24/7, taking advantage of the time difference. With a workforce that is proficient in English and highly skilled, businesses can assign tasks to their offshore team in the Philippines during their own working hours and receive completed work the following day. This allows businesses to increase productivity and efficiency while keeping costs low, as they can maintain a smaller team locally and outsource the rest of the work to the Philippines. The flexibility of operations also allows businesses to quickly scale up or down as needed without the challenges of recruitment, training and infrastructure setup, which can be time-consuming and costly.
Where to start?
Whether you are diving into the outsourcing pool for the first time or keen to make changes to your current business arrangements, discover our top tips to consider when developing your outsourcing strategy in our blog: ‘How to get outsourcing right’.