6 Reasons For Outsourcing To The Philippines

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6 Reasons For Outsourcing To The Philippines

While researching the best outsourcing destinations in the world, you might have come across a few articles recommending the Philippines for their low-price yet quality performance.

But there’s more to outsourcing in the country than quality outputs and friendly pricing. Today, we take a look at 6 more reasons why you need to outsource in the Philippines now.

1. There’s little to no chance of experiencing a communication barrier

Filipinos are well-versed in English, which happens to be the universal language. This high proficiency in English is backed up by these rankings and statistics:

  • The Philippines ranked 14th out of 88 countries in the 2018 English Proficiency Index. The same index ranked the country 2nd among 21 Asian countries, next to Singapore. 
  • The Philippines’ literacy rate stands at 95.6%. 70% of this number speaks and reads English fluently. 

six reasons for outsourcing to the philippines

The Philippines’ high English proficiency rate stays strong thanks to the ongoing teaching and implementation of the English speaking policy in schools and universities nationwide. Filipinos are taught how to read and converse in English as soon as they start schooling.

Filipinos deem the language as an important skill to enter the workforce easily. And with the growing outsourcing industry, more Filipinos are prioritizing the polishing of their English skills.

2. They’re the frontrunners in the outsourcing industry

The Philippines is no beginner in the outsourcing industry. In fact, the first BPO company in the country, Accenture, was established in 1992. Ever since more BPO companies have risen in the country. 

Not only that, but more outsourcing marketing companies have also established grounds in the country. Through the years, the country has been keeping up with the growing marketing needs of businesses around the world.

All these have contributed to the tremendous growth of the outsourcing industry. This is why the Philippines now outranks India as the world’s top outsourcing destination. 

3. All sorts of businesses can outsource to the country

Contact centers and other multi-billion companies are choosing to outsource to the country due to their cost-efficient benefits. These companies enjoy quality output and a continuous stream of income without making more huge investments in their manpower. 

six reasons for outsourcing to the philippines

But outsourcing to the country isn’t limited to just megalomaniac companies these days. Startups and medium-sized businesses can also enjoy the fruits of outsourcing at a low-cost investment, thanks to the country’s budget-friendly pricing.

But don’t let the low price fool you. You can still enjoy outputs from these Filipino employees that exude premium quality. Most businesses that have outsourced to the country had also found opportunities to expand and grow their products and services. 

4. You’ll have no problems when it comes to cultural compatibility

Filipinos are huge fans of Western media. With the 55.5% internet penetration in the country, more Filipinos are unconsciously being exposed to different cultures portrayed in books, movies, music, and other media products from the US and other countries. 

With this, you won’t encounter such problems with migrating your business processes. Your offshore outsourced staff can get a grasp of how things work in your business as fast as possible.

For businesses outsourcing their customer service needs, especially those that cater to a worldwide audience, this culture compatibility is extremely helpful. Your outsourced employees can attend to the needs and concerns of your business without the risk of offending someone due to a lack of cultural knowledge. 

5. The government supports more foreign businesses to invest in the country

The Philippine government has continuously recognized foreign businesses and the outsourcing industry as huge contributors to the country’s growing economy. This is why the government has made it simpler and easier for foreign businesses to invest in the country. 

six reasons for outsourcing to the philippines

For one, there exists the Foreign Investment Act of 1991 in the country. The law has liberalized foreign businesses and investors to invest 100% equity in companies of any type of business activities, as long as they abide by the restrictions indicated in the Foreign Investments Negative List.

Aside from the law, the government has also implemented tax and non-tax incentives for foreign businesses in the country. They’re currently working on laws and regulations to make the country’s outsourcing industry systematized for all parties. 

6. The Philippines is rich with versatile, high-skilled employees

Businesses across the globe love to outsource in the Philippines because of the high population of skilled employees in the country. No matter what task you need to outsource, there are Filipino superstars willing to help you out. From marketing tasks to IT-related needs, there’s a Filipino employee fit for the task.

To produce more capable Filipino employees, the government has also partnered with universities nationwide to implement curriculums teaching students necessary work skills, particularly for the BPO industry. 

They’ve also established TESDA, a training institute for Filipino adults who wish to learn or polish their workforce skills. The institute offers free call center training for Filipinos who wish to join the BPO industry.

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Roann Tubig