4 Reasons Outsourcing to the Philippines is so Popular

The Philippines was not the country that came to mind when outsourcing was suggested only ten years ago. Today, the Philippines is the go-to destination for outsourcing services provided offshore.

The Philippines is becoming a more popular outsourcing destination for businesses. In fact, since 2004, the nation’s BPO market share has increased by three times, from 4% to 12.3%.

Its anticipated yearly growth rate is between 7 and 9 percent, which is higher than the anticipated global growth due to the large number of established agencies that have relocated there. This makes the rapidly increasing supply and demand seem like a better option for overseas businesses.

The Philippines is regarded as a powerhouse in the BPO sector. When it comes to work ethics, the Filipinos are among the greatest, providing expert services that satisfy the requirements and standards of your business. Additionally, the general services are thought to be more reasonably priced than with other suppliers, which makes it even tougher to pass up the offer.

Why exactly is the Philippines such a hotbed for BPO, and what does that signify for businesses looking for flexible outsourcing solutions? Here are just a few of the factors that have made the Philippines a popular outsourcing destination for companies around the world:

1. There’s No Language Barrier

Previously, when it came to outsourcing, one of the most common concerns was that workers either didn’t understand English well or spoke it well but with an accent that can be challenging to understand.

Well, outsourcing to the Philippines almost completely allays concerns about a linguistic barrier. English is one of the two official languages in the Philippines. On the numerous islands that make up the Philippine nation, Filipino, or Tagalog, is the most widely used language. However, when we say that English is a close second, we really do mean it.

Filipinos write and speak English rather effortlessly, including linguistic intricacies like idioms and – when the situation calls for it – a little slang. A whole 92 percent of Filipinos are skilled in the language.

Non-standard accents can be difficult to detect because many Filipino houses are multilingual and kids start learning and speaking English at a very young age, and you or your clients could even forget you’re speaking to someone halfway around the world.

2. A tech-Savvy, Autodidactic Workforce

The majority of the business process outsourcing (BPO) workforce in the Philippines is made up of the newest generation of workers, who are autodidactic, tech-savvy, and right around 23 years old on average. Some of the youngest people entering the workforce today, members of Generation Z, explicitly represent that age group. These recent graduates are looking for jobs more and more often where they can feel like they are making a difference.

They have a strong sense of self-motivation, and as a group, they approach their work with authenticity and empathy. They also have a strong affinity for the technology that facilitates working remotely.

You can create an engaged and well-educated workforce by combining this ambitious and bright labor population with the outstanding and numerous colleges that surround big cities like Manila. Companies wishing to outsource a part of their finance and accounting department are frequently shocked to hear that bookkeeping experts also adhere to GAAP and that CPAs in the Philippines are certified using the same standards as those used in the United States.

3. Top Notch Technology and Security Infrastructure

The technology and security infrastructure in major cities like Manila is well-positioned and just as dependable as it is here at home. Data security is a high priority, and technology availability (such as WiFi signal and Internet connectivity, for example) are not at risk of failing.

You therefore don’t need to be concerned about your data falling into the wrong hands. In reality, the Philippines’ Data Privacy Act (DPA) of 2012 was passed to ensure that the nation maintains compliance with global security standards. In fact, the newly appointed chair of the 2020 privacy taskforce within the Global Privacy Assembly (GPA) in the wake of the novel coronavirus pandemic is The National Privacy Commission (NPC), the Philippine watchdog organization established to ensure the nation’s compliance with the DPA, making them a true global leader in data privacy and security.

4. Quality That Doesn’t Break the Bank

Filipinos strive to produce high-caliber work. This is seen from the excellent business outcomes generated by Philippine business process outsourcing organizations. In reality, with a GDP growth of 5.1 percent in 2021 and an estimated 6 percent growth in 2022, the Philippine economy is one of the fastest-growing in Southeast Asia.

Filipino talent is not necessarily a lower-quality option for corporations just because it is less expensive. The Philippines is a more desirable destination to outsource to and expand an offshore workforce due to the differences in employee prices, benefits, and operational effectiveness between nations.

The average salary is about 30% of what it would be in most Western nations. Accordingly, your business might easily achieve cost reductions of up to 70% on staff expenditures alone. Living expenses and business expenses are around 50% less expensive.

Additionally, the Philippines has far lower living expenses than the majority of Western nations. A lower level of life is not necessarily a result of a cheaper cost of living, though. In truth, a lot of outsourcing businesses in the Philippines give local Filipinos jobs so they may sustain themselves and their families.

Outsourcing Can Help You Scale

Make sure your objectives and justifications for outsourcing are clear before you start searching for a supplier. Your goals will act as a road map for the journey ahead.

Take the time to speak with several outsourcing service providers so you can evaluate them and choose the one that best suits your company.

The cheapest options aren’t always the best ones. At first, you might be able to save money, but it will end up being much more expensive if the outsourcing supplier can’t perform consistently. Look for a partner who has fair and clear pricing with flexible deal alternatives to ensure there are no hidden fees.

If you’re looking for a little guidance or simply need someone to answer your outsourcing questions, feel free to reach out. Our team is always standing by to help guide you in the right direction.