Why the Philippines in one of the top outsourcing locations

Mark Engelmann
Mark Engelmann
    2 minute read

In 2013, Knowledgefaber, an India-based consulting and research firm released the results from a study ranking the highest performing BPO locations world-wide. Manila, the capital of the Philippines, was ranked number 1. The top 25 on the list are:

Top 25 cities

1. NCR (Metro Manila)
2. National Capital Region (NCR)
3. Mumbai
4. Bangalore
5. Chennai
6. Shanghai
7. São Paulo Brazil
8. Hyderabad
9. Guangzhou
10. Beijing
11. Moscow
12. Pune
13. Chengdu
14. Bangkok
15. Dublin, Ireland
16. Cork, Ireland
17. Rio de Janeiro
18. Jakarta, Indonesia
19. Kolkata
20. Brno (Czech Republic)
21. Colombo
22. Budapest Hungary
23. Prague (Czech)
24. Krakow, Poland
25. Dalian, China

So why is The Philippines considered to be the best global location to outsource your processes?

The two main reasons for this are:

  • Voice Talent
    English, along with Filipino, are the two official languages in The Philippines. Generally speaking the large majority of under-30s Filipinos are fluent in English. Both Filipino and English are used in government, education, print, broadcast media, and business.
  • Cultural Proximity
    Historically, The Philippines has been the subject of various foreign occupations. Including a US occupation that lasted close to 40 years in the first half of the 20th century. Partly due to this occupation, The Philippines has a close cultural proximity to western, English speaking countries such as Australia and the US. Cross-cultural expert and academic, Geert Hofstede, has conducted enormous amounts of peer-reviewed research into cultural proximity across all countries and supports the view that Australia, the U.S. and the Philippines have quite a lot in common in terms of doing business. .

In addition to these two main points, it should also be mentioned that Filipinos hold their BPO sector in high regard. And it is not surprising when you look at how it is revolutionising the country’s economy and assisting in improving living standards. Here are just a few extra points of interest:

  • Advanced HR conditions, high quality office space, and high pay (in relation to cost of living) makes the BPO sector a highly desirable sector for locals to work in.
  • Private consumption, which comprises over 70 percent of GDP, drove GDP growth in The Philippines. The sustained growth of the BPO sector has created a new middle class which is also starting to drive private consumption, notably the consumption of non-essential miscellaneous goods and services, and investment in housing and real estate.
  • Filipino Universities are graduating approximately 500 000 students a year; half of which take up employment in the BPO sector. The large numbers of well-trained, customer focused, English speaking graduates is good news for the BPO sector.

From my point of view, working in The Philippines is a no-brainer. If you want to learn more about our experiences and how we can help you outsource then Contact Us.

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