Outsourcing to the Philippines has played a vital role in its economic growth since the industry’s first establishment in 1992. At present, the business process outsourcing industry continues to be the leading industry in the Philippines. Many foreign companies and businesses continue to establish satellite offices in the country and seek skilled Filipino talent to outsource their work.
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Why Outsource Your Staff in the Philippines?
Outsourced Filipino staff have helped foreign companies elevate the quality of their services and save labor costs, among others. Furthermore, Filipinos speak and write in English fluently as well as function in flexible environments, even the remote setup.
The Philippine government has also favored these outsourcing companies, giving them incentives because of the industry’s large contribution to the country’s economy.
Factors Why Companies Outsource to PH
Reduced Labor Costs
In the Philippines, foreign companies pay 75% less labor costs than when they outsource their operations to other countries. This is top-par cost efficiency for foreign companies because Filipinos are highly committed to providing quality output and being business process outsourcing professionals as a long-term career.
Western culture is still highly prevalent in the Philippines through entertainment and technology. Thus, Filipinos quickly adopt the foreign culture and get along well with their Western bosses.
Skilled Filipino Worker
Most Filipinos have high educational attainment, and the outsourcing business industry benefits significantly from this. With 3 million new graduates every year, the market has a no shortage of talented and skilled workers who are enthusiastic about starting their careers right. Also, this abundant supply of workforce has a guaranteed 97.5 % literacy rate, according to statistics.
Filipinos are committed to providing service anytime, anywhere ~ 24/7. The difference in time zones is no problem there. Working night shifts is somewhat typical in the Philippines, given that the outsourcing industry has been in the country for decades.
The Philippine government has passed regulations and provided incentives to foreign companies who outsource their operations to the Philippines. Among these are the 4-year and 8-year income tax holiday and the establishment of the Philippine Economic Zone Authority (PEZA) and special economic zones (SEZ).
English is the Philippines’ second official language, and so Filipinos are excellent verbal and written English communicators. The country also consistently ranks among the Asian countries with the highest English language proficiency.
Outsource and Build Your Dedicated Team with KMC
The Philippines has long been regarded as the top outsourcing capital of the world, beating out steady competition such as India and Eastern Europe. Although India’s own outsourcing industry has been around for more than 30 years and is three times bigger than the Philippines’, the Philippines has proven to still hold the upper hand. It has a better balance of reducing costs, ease of doing business, cultural alignment, English language proficiency, and broad capability that most companies looking for offshore teams search for.
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