The outsourcing industry in the Philippines has been booming in recent years, and it’s no wonder why. Businesses of all sizes from all over the world are taking advantage of what this Southeast Asian country has to offer in terms of highly skilled workers and cost-effective services.
Suppose you’re on the fence about outsourcing some or all of your business processes to the Philippines. In that case, we will discuss 10 of these benefits you’ll get when you choose this Southeast Asian country as your outsourcing destination.
What is outsourcing? It is the process of getting a third-party contractor to work on the non-core functions of the business. The contractor will then hire dedicated developers who will work on the task allocation from a certain company abroad.
The Benefits of Outsourcing in the Philippines
The Philippines is considered one of the most outsourcing-friendly countries in the world. Here are some factors that make this country an attractive destination for BPO:
- Cost-effective services – One of the main reasons businesses outsource to the Philippines is that they can save a lot of money on operational costs and other offshore operations. This is because the labor force in the Philippines is relatively cheap compared to other countries. As a leading provider of outsourced services that business needs, the government offers cost-effective business solutions to help foreign companies achieve their business goals.
- Highly skilled workforce – The Philippines has a large pool of highly educated workers. The country produces around 400,000 college graduates every year. Additionally, many Filipino workers are proficient in English, which is the language of business. These high-quality talents can maximize your business growth and business continuity. Moreover, the Philippine government is constantly on guard to elevate the quality of their BPO partner.
- Easy access to innovative technologies – The Philippines has become a popular outsourcing destination because of its widespread use of cutting-edge technologies. If you’re a business owner, outsourcing to the Philippines can help you stay up-to-date on all of the latest technology trends, focusing more closely on what’s important: growing your business operations. By working with BPOs in the Philippines, you can easily stay on top of the latest technology trends in your industry and ensure that your business operations are secure and efficient.
- Versatile service offerings – BPO in the Philippines is not limited to a single industry or function; instead, it covers a wide range of services that other industries need, including IT services, customer support, finance, accounting, and remote staff. In turn, it allows them have reduced legal liabilities.
- Easy access to global markets – As an outsourcing destination in Southeast Asia, the Philippines offers unique opportunities to businesses seeking to expand their reach into markets in the region. With its location at the crossroads of major shipping routes, plus its well-developed infrastructure, the Philippines provides businesses with an excellent gateway to other Asian markets.
- Pro-industry environment – The Philippine government supports the outsourcing industry. It has created multiple incentives for foreign companies in the country, such as tax holidays, reduced red tape, and a one-stop shop for industry permits. Philippines BPO significantly improved the lives of many Filipinos and the Philippines economy in general.
- Robust telecommunications infrastructure – The Philippines has one of Asia’s most robust telecommunications infrastructures. The country has a wide variety of fixed and mobile telephone services that are reliable and efficient. This allows big and small companies to operate smoothly and with better access without interruption.
- Stable political environment – The Philippines has a stable political environment conducive to transactions and investment. The country is a multiparty democracy with a strict rule of law. Additionally, the Philippine constitution protects the rights of clients and foreign investors that outsource staff to the Philippines.
- Strategic location – The Philippines is located in Southeast Asia, making it ideal for businesses seeking to enter this rapidly growing market. The country is also close to other major markets, such as China, Japan, and India. Additionally, the Philippines is a member of the Association of Southeast Asian Nations (ASEAN), which provides companies with preferential access to this market.
- Favorable currency exchange rate – The Philippine peso is one of the most stable currencies in Asia. The country’s central bank in Metro Manila carefully manages the supply of Philippine currency in the market, which helps to stabilize the exchange rate. For companies, this means that they can get more value for their money when they outsource to the Philippines.
The future of the outsourcing industry in the Philippines
It looks bright. The country has a lot to offer enterprises seeking to reduce costs and improve efficiency. If you’re thinking about outsourcing, the Philippines should be at the top of your list.
In 2021 alone, the Philippines will generate $29 billion in revenue from the outsourcing industry. This figure is expected to grow to $41 billion by 2022.
The Philippine outsourcing industry will continue to grow in the years to come. This growth will be driven by the country’s strong economic fundamentals, skilled workforce, and pro-industry environment.
Moreover, the Philippines is strategically located in the heart of Southeast Asia, making it an ideal location for industries looking to tap into this rapidly growing market. With its strong focus on emerging technologies, such as artificial intelligence and automation, the future looks bright for outsourcing in the Philippines.
The BPO industry in the Philippines today
- Call center industry. The Philippines is a significant center for customer care services. With its skilled and multilingual workforce, the country has become a leading destination for call center outsourcing. The BPO industry is consists of the following services:
- IT-enabled services industry. Thanks to the country’s highly educated workforce, English proficiency, and cost-competitiveness, the Philippines is a top destination for IT-enabled services.
- Website design and development. In addition to IT-enabled services, the Philippines also has a functional website design and development industry. Many BPO companies outsource their website requirements to the Philippines thanks to its talented developers and affordable rates.
- Content creation. The Philippines is also home to many content creators, including writers, designers, and videographers. This talent allows BPO companies to outsource their content needs to the Philippines at a fraction of hiring in-house staff.
- Data entry. The Philippines is a significant contact center for data encoding services. With its large pool of skilled data specialist operators, the country is a top choice for companies looking to streamline and improve their data management processes.
Outsourcing to the Philippines will significantly improve the core business functions of their clients. Not to mention that clients need not pay health insurance, tax returns, or other HR costs.
What should you do to succeed in your business process outsourcing BPO strategy?
- First, you should clearly understand what services you need to outsource. Offshore staffing can be a tedious task, and it would be best to outsource non-core or non-revenue generating processes.
- Second, you need to find the right outsourcing provider to offer those services at a reasonable price. Offshore staffing is considered the back office of the business. Hiring a local talent requires task allocation to control management issues and data processing.
- Third, you need to create an efficient and effective communication system between you and your outsourcing partner. Keep in mind that you are dealing with non-western culture individuals as clients.
- Fourth, it would be best to establish clear metrics for measuring the outsourcing process. This will help you gauge your progress and ensure that your expectations are met.
- Lastly, you need to invest in training and capacity building for your employees and your outsourcing partner. By fostering a collaborative relationship and free consultation, you can ensure that your business processes are efficient and effective. With the right BPO strategy and approach, you can reap the many benefits of outsourcing in the Philippines.
Outsourcing in the Philippines has become one of the most popular business strategies for companies worldwide. Thanks to its cost-competitiveness, skilled workforce, and pro-industry environment, the Philippines is a top destination for outsourcing.
Globally, 64% of businesses say they outsource some part of their operations.
The Philippines is the top provider of Business Process Outsourcing BPO services globally.
BPO services in the Philippines contributed $25 billion to the country’s economy in 2016, accounting for almost 10% of GDP
1.4 million people are employed in the BPO sector in the Philippines, and this number is expected to grow over the next few years.
Several businesses in Australia have outsourced their non-core business services to the Philippines to focus on their core competencies.
The Australian Business Process outsourcing industry is worth $AUD40 billion.
Indeed, there are many benefits of outsourcing businesses to the Philippines. If you’re looking to take your business to the next level, consider working with a reliable outsourcing partner in the Philippines today.