Today, a key component of modern company strategies is outsourcing, and there are common business process outsourcing services that you can start utilizing right away, which offers businesses the chance to reduce costs, gain specialized knowledge, and increase production. Because of the country’s skilled labor force, reasonable cost, and convenient time zone, the Philippines stands out as one of the top outsourcing locations. This article explores the benefits of the time zone difference between the Philippines and other countries for businesses looking to outsource their operations.
Understanding the Philippine Time Zone
Coordinated Universal Time (UTC+8) is eight hours behind Philippine Standard Time (PST), which is observed in the Philippines. For this specific time zone, the Philippines can effectively serve a variety of international markets, contributing to the key economic milestones of the Philippine business process outsourcing industry.
Let’s look at how businesses in different regions benefit from this time zone advantage.
- North America uses both the Eastern and Pacific Standard Time
- Asia-Pacific area uses the Eastern Standard Time
- Europe uses the Central European Time (CET)
Benefits for North American businesses
The time difference with the Philippines can be used by North American businesses, namely those in the US and Canada, to set up a continuous 24-hour business activity. Here’s how outsourcing to the Philippines can benefit North American businesses:
- Extended Operating Hours: While the workday concludes in North America, it is only starting in the Philippines. This enables business operations to continue nonstop, ensuring that tasks are being managed 24/7. For instance, customer service can be available around the clock, greatly improving customer satisfaction and retention.
- Overnight operations: Tasks like processing data, generating reports, and other back-office functions can be finished during the night. This indicates that North American firms can benefit from tasks being finished overnight, which can accelerate business operations and decision-making.
- Decreased Turnaround Time: The time zone difference can also lower the turnaround time for projects. Tasks given at the close of the working hours in North America can be finished by the beginning of the following day, offering a notable edge over competitors.
Benefits for European Firms
European businesses, specifically those operating on Central European Time (CET), also take advantage of the Philippines’ time zone. The time gap of 6-7 hours enables a beneficial overlap in the European afternoon and the Philippine evening for productive activities. This is how European businesses can benefit from this time zone difference:
- Real-time Teamwork: Working hours overlap allows for real-time collaboration and communication. This is especially advantageous for tasks like project management and IT support that involve needing instant feedback or coordination.
- Extended Operating Hours: Just like in North America, European businesses have the option to extend their service hours by utilizing the workforce in the Philippines. This is particularly beneficial for customer service and technical support, guaranteeing that clients obtain help outside of standard European business hours.
- Streamlined Workflow Coordination: European companies have the ability to delegate tasks at the close of their business hours, allowing the Philippine team to work on them during their own workday. This guarantees that work is constantly moving forward, resulting in quicker project finishing and enhanced productivity.
Advantages for Companies in the Asia-Pacific Region
Region
Companies in the Asia-Pacific region, especially in Australia and New Zealand, can benefit from the small time gap of only 2-3 hours with the Philippines.
- Working Hours in the Daytime: Filipino employees are able to work within the normal daytime schedule, which is similar to Australian and New Zealand business hours. This removes the necessity of working night shifts, encouraging improved work-life equilibrium and increased employee contentment.
- Cultural Similarity: The strong cultural connection shared by the Philippines and other Asia-Pacific nations improves communication and cooperation. Mutual beliefs and principles at work help create a pleasant work atmosphere, resulting in increased job fulfillment and efficiency.
- Immediate Assistance: Real-time support enables instant help and teamwork. This is especially advantageous for sectors like healthcare and construction, where timely communication and coordination are essential.
The Advantage of 24/7 Operations
Operating 24/7 is one of the biggest advantages of outsourcing to the Philippines. The willingness of the Filipino labor force to work shifts, including nights, makes this 24-hour operation viable. A 24/7 operation in the Philippines can help firms in the following ways:
- Offering round-the-clock customer service guarantees that customers get help whenever they need it, no matter what time zone they are in. As a result, there is higher client satisfaction and retention.
- A 24/7 operation minimizes downtime and disturbances by allowing issues to be swiftly addressed and rectified. This is especially crucial for technical services and IT support.
- Working around the clock guarantees that the project is continually moving forward, which accelerates project completion and boosts productivity. This ongoing process can provide businesses with a significant advantage.
Now that we’ve established the advantage of the Philippine Time zone for business planning to outsource nearshore and offshore, let’s also look at other top 5 Reasons that make the Philippines a top outsourcing destination:
1. Cost Savings: The Philippines offers a low cost of living and competitive wage rates. Businesses can hire highly skilled workers at a fraction of the cost compared to their home countries. Additionally, tax incentives and breaks further enhance cost-effectiveness.
2. English Proficiency: The country has a highly literate and proficient English-speaking population. This language fluency eliminates communication barriers between offshore workers and clients, making the Philippines an ideal choice for outsourcing.
3. Cultural Compatibility: Due to its history of colonization and influence, the Philippines shares strong cultural affinity with Western countries, especially the US. This compatibility fosters seamless collaboration and understanding.
4. Strategic Location: The Philippines’ strategic position in Southeast Asia provides global opportunities and easy access to key markets in North America and Europe. Real-time collaboration and efficient communication are facilitated by this geographical advantage.
5. Robust BPO Industry: With over 1,000 BPO companies and nearly 1.2 million employees, the Philippines has established itself as a premier outsourcing hub. Its favorable business environment and skilled workforce contribute to its prominence.
Businesses looking to outsourcing processes should seriously consider the Philippines for its cost-effectiveness, language proficiency, cultural alignment, and strategic advantages.
Conclusion
The strategic time zone of the Philippines offers several benefits for companies looking to outsource their operations. Whether it’s extending business hours, reducing turnaround times, or providing real-time support, the Philippines’ time zone provides a unique advantage that can enhance efficiency, productivity, and customer satisfaction.
Among the world’s attractive offshoring destinations, the Philippines stands out for several compelling reasons. Coupled with a skilled workforce, cost-effectiveness, and cultural compatibility, the Philippines remains a top choice for outsourcing across various industries.
By leveraging the time zone advantage, companies can ensure that their operations run smoothly and efficiently, providing them with the competitive edge needed to thrive in today’s global market.
Connext Global Solutions is a renowned offshoring provider in the Philippines that assists mid-sized companies in creating tailored, dedicated support teams. Learn more about working with Connext Global Solutions.
Source:
Konstantin Bikos, Anne Buckle, and Vigdis Hocken. How Many Time Zones Are There? Time and Date. https://www.timeanddate.com/time/current-number-time-zones.html. Accessed August 2024.
Top 5 Reasons the Philippines is a Premier Offshoring Destination. https://connextglobal.com/top-5-reasons-the-philippines-is-a-premier-offshoring-destination.
Photo by cottonbro studio
