7 Reasons Why You Should Outsource to Philippines


reasons to outsource to philippines

If you want to maximize the benefits of outsourcing, you may want to outsource to Philippines. It has been the primary destination for global outsourcing since 2013 and its industry continues to grow at an annual rate of 20%. If you want to know “why”, here are 7 reasons you should outsource to the Philippines:

1. High Literacy Rate

At 98%, the Philippines has one of the highest literacy rates in the world. This is quite an achievement considering the Philippines is essentially a developing economy.

Recently, the Philippines adopted K-12 in their educational system. This is part of the country’s efforts to improve the standards of education and make it competitive with the rest of the world.

2.High Level of Proficiency in English

In 2012, software developer GlobalEnglish released the results of its survey which showed the Philippines as number one in the world in Business English.

In the survey, the Philippines came ahead of the United States and other predominantly English- speaking countries.

While Pilipino or Filipino is the national language of the Philippines, English is the medium of instruction in schools and communication in business.

3. Perfect Cultural Fit

The Philippines has been colonized by Spain, America and Japan. For centuries it has traded with neighboring Asian countries such as China, Malaysia and Thailand.

As a result, the culture of the Philippines has become a diverse melting pot of mores, practices and values handed down from one generation to the next.

Filipinos have been said to have taken in Western culture. But the truth is, its culture has been influenced by the Spaniards, Japanese, Chinese and the Dutch. Therefore, it is easy for Filipinos to adapt to any culture that does business with the country.

4. Great Work Attitude

Perhaps owing to its cultural influences, Filipinos have developed a great work attitude. They are very respectful, courteous and generally, a cheerful people.

Their attitude is one reason why the Philippines has become the preferred destination for companies that want to outsource customer support services. Filipinos have the temperament to manage the demands of irate customers.

Filipinos are also diligent when it comes to work. They will give their best to render top quality service to the client. For many, work is not just an opportunity to earn a livelihood but also to prove their abilities and build a career.

5. Comparative Cost Advantages

Of course, the number one reason why businesses outsource is to capitalize on comparative cost advantages foremost of which is labor.

Hourly wage rates in the Philippines average $2.50 for agents and $7 for those holding managerial positions. These rates are much lower in comparison to average wage rates in the United States, Australia, the United Kingdom and Canada which range from $16 to $20 per hour.

All told, cost of full- blown outsourced operations to the Philippines will range from $9 to $12 per hour which are still much lower than the average wage rate in developed economies.

6. Promising Infrastructure

Yes, the Philippines along with India, another top destination in outsourcing do not offer the best infrastructure for Internet services.

The problem of infrastructure is due to policy making not technological capabilities. The Philippines and India continue to support oligarchies in business which prevents industries such as telecommunications from opening up and encouraging competition.

There is however, a groundswell of support for the respective governments to act on dismantling the oligarchies by liberalizing key industries. Hopefully, these actions will bear fruit and bring in better services.

7. Presence of Regulating Agencies

The Business Processing Association of the Philippines (BPAP) and the Contact Center Association of the Philippines (CCAP) act as self- regulating agencies in the outsourcing industry.

If you want to outsource services to the Philippines and are looking for a delivery center, you can contact these 2 associations and request for recommendations.

They frequently monitor the conduct of member- centers and regularly institute laws to improve the service delivery of Philippine outsourcing companies.

Key Services to Outsource to Philippines

Before you decide to outsource to the Philippines, you should first determine which services you need to transfer. You should conduct a general audit of your operation and identify which services fall under the core functions of your business.

Those that do not qualify as core functions are the non- essentials; they are primarily supportive in function but nonetheless are crucial to the success of your business.

Outsourcing non- essential tasks is a good first step in outsourcing. The risks of making mistakes are minimal. It will give you time to develop trust and familiarity with your outsourcing services provider.

The Philippines however, is widely reputed for rendering world class work in the following services:

1. Virtual AssistanceFilipino virtual assistants are among the best in the world are in great demand. Proof of this is that 1/8 of Upwork’s virtual assistants or 1 Million members are from the Philippines.

2. Voice Campaigns – The Philippines became the number 1 outsourcing destination by virtue of acquiring the lion’s share of voice services. These services include telemarketing, appointment setting and after- sales surveys.

3. Customer Support Services – The Philippines is also well known for rendering excellent customer support services largely because of the Filipino’s even temperament, good nature and positive attitude.

4. Back Office Operations – More companies are transferring back office operations in the Philippines. 850,000 square meters of commercial property in a premium location in the Philippines was allocated for back office operations.

5. Animation Services – Many of the most beloved animated movies such as “Finding Nemo”, “Toy Story” were done by Filipino computer graphic artists. Film companies like Marvel, Hanna- Barbera and Disney have been outsourcing animation work to the Philippines for several years.

6. Medical Transcription – The Philippines is also a popular hub for medical transcription, coding and billing work. More investments in training centers have been undertaken to improve performance by Filipino transcribers and coders.

The Philippines has plenty to offer businesses that want to outsource. The country is rich with talented people who are intelligent, hard- working, proficient in English and who approach their job with passion. With its affordable wage rates and comparatively low cost of operations, the Philippines presents you with the best value proposition to cover all of your business needs.


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