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7 Reasons Why The Philippines is the Ideal Outsourcing Destination.

The Philippines is among the top countries for global outsourcing companies to conduct business operations. Yet the Philippines hasn’t always been a known hotspot for the outsourcing industry, and its global success can be traced way back to 1992 when the first business processing outsourcing (BPO) call center was built. Seeing a promising opportunity for the local economy, the Special Economic Zone Act was passed in 1995 to boost outsourcing, opening the door for foreign investors to establish and expand their outsourcing enterprises in the nation.

According to a 2022 report by Outsource Accelerator, the world’s leading outsourcing marketplace and advisory, the Philippines continues to be one of the undisputed BPO capitals in Southeast Asia, being second to India in providing several business process outsourcing services. While India is well-known in information technology and software development, the Philippines excels in customer service and admin operations. The IT and Business Process Association of the Philippines (IBPAP) forecasts that by the end of 2022, the Philippine BPO industry's sales could soar up to $38.9 billion, surpassing the $29.49 billion threshold in 2021.


Here are seven more reasons why you should start outsourcing in the Philippines.


1. Reduced operational costs


This is probably the most attractive perk that comes with outsourcing in the Philippines, and the reason why business owners flock to start investing in the country. Compared to conducting business in Western countries such as the United States, United Kingdom, and Australia, you’d be seeing a significant cutback on your labor and operational costs when you choose to invest in the Philippines.


Labor costs are relatively low in the Philippines, and with highly skilled Filipino professionals, you’re certainly making the most out of your investment. Imagine saving up 60% to 80% of operational costs, you’d be able to invest more in other important areas of your company.


2. Western cultural affinity


Due to the Philippines being one of the most westernized nations in Southeast Asia, Filipino workers prove to be a cultural match to the needs of foreign clients. Hospitable, service-centered, and highly adaptable—Filipinos can easily adjust to any fast-paced environment.


Much like their Western neighbors, Filipinos are driven and determined to not only cut through the global competitive market but also have an affinity to serve a common cause.


3. Advanced English proficiency


Filipinos are also able to hold a conversation in English like natural speakers. Due to the commendable English proficiency among Filipinos, they are able to communicate in a neutral tone, giving them the edge in chat support, voice services, and virtual assistance.


English is also the mode of instruction in the Philippines. Since it is the primary dominant language for international business, English is highly encouraged by universities and colleges. This has led to the Philippines bagging the fifth spot for the largest English-speaking country in the world.


4. Massive global talent pool


Outsourcing in the Philippines allows you to tap into a skilled talent pool of competent, creative, and highly adaptable Filipino workers. You don’t have to invest double in labor costs and waste time in supervising and training them. Filipinos, in nature, are very resourceful and would often go beyond the call of duty just to get the job done.


The average age of BPO Filipino workers is 22 to 25. In the long run, this means good news for your business as long as you are paying and treating them well. Nowadays, young Filipino professionals tend to emphasize more on fulfilling a work-life balance but are also willing to put in the work to advance their career aspirations.


5. Secured data privacy


The Philippines has implemented a number of legislation to support the growth of the outsourcing sector. The Data Privacy Act of 2012 is one of these laws. It is modeled after Europe's General Data Protection Regulation, which is the most stringent privacy and security law on data collection.


The Data Privacy Act of the Philippines lays a strong emphasis on preventing unwanted access to all types of information. For more than 10 years, numerous of the biggest companies and huge corporations in the world—in the fields of healthcare, information technology, and finance—have trusted the Philippines' outsourcing sector to handle their sensitive data.


6. 24/7 staffing


All BPO business owners know that the key to success is being able to work out the needs of their customers regardless of different time zones. Especially in the BPO sector where customer support is 24/7, the hustle doesn’t stop for anyone, that’s why the Philippines is an ideal outsourcing destination because of the country’s neutral time zone.


Filipinos are quick to adjust to any time zone since most Filipinos are accustomed to working night shifts. Working the night shift usually entails a higher salary and compensation for low-income Filipino families. No matter what hour you call in the Philippines, there will always be someone on the clock who would be more than happy to assist you.


7. Government and educational support


The Special Economic Zone Act is not the only law in the Philippines that recognizes and protects the growth of outsourcing. Government agencies such as TESDA (Technical Education and Skills Development Authority) are tasked to provide policies and programs to support call center and technical skills training.


Philippine schools and universities also heed the call to back up the development of the outsourcing sector by integrating it into their curriculums. This is to ensure that the youth would be able to thrive on a global market scale once they graduate and start searching for jobs on their own.


Start outsourcing now


The Philippines is seeing a new era in outsourcing in the coming years due to the rise of automation and artificial intelligence (AI). For companies to continue being competitive in the industry, they must be able to transform their business processes and workforce to quickly adapt to the growing needs of the industry.

Just like how the Philippines is a great place when it comes to outsourcing, UpStaff is your dedicated offshore partner providing a wide range of outsourcing solutions in the field of human resources, accounting, auditing and administrative. Want to start outsourcing in the Philippines? Contact us now at info@upstaffremote.com to learn more about our services.

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