This post provides the five reasons why you should outsource to the Philippines.
5 Reasons Why You Should Outsource to the Philippines
Introduction
When it comes to outsourcing, the Philippines is a popular option among American businesses. There are plenty of other countries to choose from but here are five reasons why the Philippines is known as the “BPO Capital of the World.”
1. Lower cost
It is cheaper to hire people in the Philippines compared to other countries because the cost of living in the Philippines is significantly lower than in other countries. This is one of the main factors that make outsourcing there an attractive option. While there are plenty of other servicing countries to choose from, you can’t go wrong with choosing the Philippines as your dollars can go a long way.
In fact, many recent graduates or even experienced applicants seek out jobs in business processing and outsourcing companies because they can expect premium wages.
Outsourcing is cheaper than opening your own office in the U.S. You can save on utilities, hardware and staff costs. If you are just starting out and want to save on expenses, a service provider can do the hard work of hiring, training, and managing a team of talented workers for you. In fact, outsourcing provides you with a solution that’s scalable as you grow and develop your company.
It’s no wonder many people living in developed countries are attracted to outsourcing work to countries like the Philippines because they can get high quality services at lower prices than if they were hiring locally.
2. Familiarity with American culture
Another factor to consider when outsourcing to the Philippines is the Filipinos’ familiarity with American culture. Filipinos are familiar with American business practices and values. Your employees can easily understand what you expect from them.
Another important factor is an appreciation for hard work on both sides of the ocean—Filipinos have a strong work ethic and are used to working long hours during busy seasons (such as Christmas), making them ideal employees who won’t need much supervision or oversight when handling projects that require multiple shifts per day over several months at a time.
3. An English literate workforce
Taking off from the previous point, you can expect Filipino business processing and outsourcing (BPO) employees to be literate in the English language. In fact, the English language is one of the official languages of the country.
When you find yourself visiting the country— street and establishment signs are in English, the major broadsheets are written in English, and the language of commerce is in English. Filipinos also speak in a neutral English accent that can easily be trained to adopt an American-sounding one.
4. Government support
The Philippine government has made a concerted effort to support the BPO industry, and as a result, it has been successful in creating a healthy environment for companies to operate. Here are some examples:
- Education system – Government support for the education system includes providing free schooling through high school and college (college costs are subsidized by the government).
- Healthcare system – There is universal coverage provided by the government through PhilHealth (a national health insurance program).
- Tax breaks – The Philippine government has laws in place that grant tax breaks to BPO companies who operate under the Philippine Economic Zone Authority (PEZA). All over the country, there are designated PEZA ecozones where companies who choose the location as their worksite enjoy financial privileges.
5. Great attitude and work ethic
One of the first things you should know about outsourcing to the Philippines is that Filipinos are known for their hospitality. Filipinos are well-known for being kind, friendly and helpful to anyone who comes into their country or culture. This means that your customers will be greeted with a great deal of kindness when they call or email your company—and they’ll be happy to do business with you as a result!
Another thing to admire about Filipinos is that they have excellent work ethic; they strive hard to reach their goals and are happy to put in extra hours just to complete a task or two.
This post provides the five reasons why you should outsource to the Philippines.
There are many reasons why you should outsource to the Philippines. First and foremost, it’s a low-cost destination. This means that your company will spend less money on salaries, which frees up resources for other important business functions like marketing or research and development (R&D).
In addition to its low cost of living, there is a diverse workforce in the Philippines with employees who can speak English fluently as well as other languages such as Tagalog, Ilocano, Hiligaynon, Waray, etc. In addition, there are also pockets of international communities in the country where you can find foreign nationals and their descendants living and working in the Philippines. What this translates to is that you will find yourself working with a highly-diverse workforce that hails from the different provinces of the Philippines and countries from around the world.
The Philippines also offers government support for foreign companies looking at outsourcing projects by providing tax incentives through various incentive programs offered by both national and local governments.
Conclusion
If you are thinking about hiring people overseas, the Philippines is a great place to start. Its diverse workforce, educated workforce and cultural similarities to the US make it an ideal country to outsource. In addition, the low cost of labor makes it an affordable option for any company looking to save money on outsourcing costs.
References
“BPO Philippines – The Future of Outsourcing | Philstar.Com.” Philstar.Com, Philstar.com, 10 Jan. 2022, https://www.philstar.com/business/2022/01/10/2152983/bpo-philippines-future-outsourcing.
Key, Justine. “Philippines: BPO Capital of the World | Magellan Solutions.” Magellan Solutions, https://www.facebook.com/MagellanCareers/, 14 Mar. 2022, https://www.magellan-solutions.com/blog/philippines-bpo-capital/.
Lagustan, Luigi. “Top 10 BPO Services and Outsourcing Companies in the Philippines – KDCI.” KDCI, 1 July 2020, https://www.kdci.co/blog/top-bpo-services-in-the-philippines/.
Raposas, Arius Lauren. “BPOs in PEZA: What Fiscal Incentives Do They Get?” Yugatech, 22 Apr. 2022, https://www.yugatech.com/business/bpo-peza-tax-incentives-philippines/.
“Why Outsource to the Philippines | Sourcefit Philippines.” Sourcefit BPO Philippines: Custom Offshore Staffing Solutions, https://sourcefit.com/why-sourcefit-bpo/why-outsource-to-the-philippines/.
