8 Reasons Why The Philippines is a Prime Destination for Outsourcing
Across the Philippines, an upsurge is occurring. Inside the sleek exteriors of modern office buildings or within the comforts of remote work setups, the BPO industry continues to flourish.
Competitive companies worldwide are increasingly seeking to optimize operations, improve efficiency, and reduce costs - and the Philippines' is continually successful in meeting those demands. Outsourcing has emerged as a strategic solution - specialized offshore providers from different sectors enable businesses to leverage external expertise and resources.
The Philippines' business process outsourcing (BPO) is now a multi-billion powerhouse continually growing in size and experience, attracting global interest, and reshaping the country's economy. Within the last ten years, it saw a growth rate of 30%. Today, it employs over 2 million people in different sectors; among the most popular include customer support, accounting and finance, and IT.
It is no question that the Philippines has become a prime destination for businesses worldwide - below are the top 8 reasons why:
1. The Philippines has an established outsourcing industry with an excellent track record
The BPO industry in the Philippines officially started in the early 1990s. Almost three decades later, many have grown to become top international service providers for various prestigious companies all over the globe. Apart from BPO facilities established in Manila, the industry has also widely expanded to other areas in the country.
And if longevity and experience aren't enough, let the results speak louder. In terms of total revenue, the BPO sector generated over $26.7 billion in 2020 alone.
2. The Philippines has an exceptional talent pool
One primary factor that makes the Philippines a top outsourcing choice is its high-caliber talents. Thousands of intelligent and highly skilled individuals study and graduate in the country. The country boasts an exceptionally high standard of education. More than 680,000 Filipinos finish university annually, and over 41 million highly trained people enter the workforce.
The talent pool is also rich and diverse - offering expertise and potential in every sector and service. Philippine BPOs cover not just administrative or back-office support or call centers. It's now common to see offshore services for marketing, healthcare, hospitality and tourism, finance, legal services, copy, and graphic design.
Also, communication with these qualified Filipino talents comes easily, leading me to the next one.
3. Filipinos are outstanding at writing and speaking English with no strong accents.
English is widely spoken in the country and is commonly used in daily life. Filipinos have been exposed to English from a young age learning the language in schools to watching English-speaking shows and movies, hearing it in broadcasts, and reading it in school books and local papers.
Educated Filipinos can easily switch between their local dialect and English, and even the less educated in the country often still know some English.
While English is also popular in other countries that offer BPO, spoken English by Filipinos is easier to understand because it is clear and does not have a strong accent or peculiar grammatical constructions.
4. Cultural Affinity and Adaptability
Cultural alignment is crucial in successful outsourcing engagements, and the Philippines excels in this aspect. Filipinos have been influenced and exposed to Western culture for centuries.
Businesses that need BPO services can save time and money by the decreased need to train employees on cross-cultural techniques and language skills.
5. Cost-Effectiveness and Competitive Advantage
Some of the top goals of outsourcing include strategic resource allocation, optimization of operational costs, and increasing return on investment. The Philippines offers a valuable competitive advantage in this regard.
The relatively low cost of living in the country and its favorable exchange rates contribute to promising pricing models without flunking on quality service. Also, the influx of BPO jobs means Filipinos enjoy a higher rate of employment, providing opportunity and security to more people.
6. Robust Infrastructure and Technological Advancements
Developing robust infrastructures and welcoming technological advancements help build a valuable environment for outsourcing companies. The country has reliable telecommunications networks, high-speed internet connectivity, and modern facilities.
The growth in infrastructure and technology is also on an upward scale - moving towards greater success in efficiency and connectivity.
7. Supportive Business Environment
The Philippines has established a supportive business environment that encourages and nurtures the growth of the BPO industry. The government recognizes the substantial contributions of outsourcing to the economy and has implemented policies and incentives to attract foreign investments.
8. Around-the-clock service means time zones are irrelevant
Imagine being able to have work done while you rest and wake up to a list of completed tasks. The outsourcing workforce in the Philippines makes this possible - by offering services 24/7. Many BPO companies in the country work multiple shifts relative to a client's time zone. Graveyard shifts, day shifts, or flexible schedules thrive in the BPO life - deciding on a working schedule that benefits businesses and employees alike is here to stay.
Offshore business processes outsourcing will continue to thrive, and the Philippines is set to remain a leading contender. This industry is ripening success and scalability for worldwide clients and businesses in ways that were once only for imagination.
The Philippines stands out as a prime outsourcing destination. However, like in any industry, some companies are not as effective and reputable as others. Always do your research and check both client and employee satisfaction reviews.
As a leading Filipino BPO company, GICF is well-positioned to provide tailored outsourcing solutions to businesses worldwide. Whether you want to optimize your customer service, technical support, back-office processes, or more, we at GICF invite you to explore the benefits of partnering with us.
Experience the ultimate power of the Philippines as an outsourcing hub by investing in GICF.