With the extra freedom and room for growth provided by outsourcing, it’s no wonder the outsourcing concept has seen tremendous growth these past years. And when it comes to the title of the world’s outsourcing hotspot, there’s one country running in the frontline – the Philippines.
Today, we take a look at the different factors and reasons that makes the Philippines the leading outsourcing destination in the world. Is it quality, the cost efficiency you can enjoy, or the country’s culture versatility?
Let’s find out.
1. High English proficiency and literacy rate
The Philippines stands as one of the frontrunners in English proficiency in Asia. According to the 2018 English Proficiency Index, the Philippines ranks second among 22 Asian countries who are fluent in English.
The Philippines takes the language seriously, declaring it as one of their official languages. When you visit the country, you can see and hear the English language everywhere – on street signs, in daily conversations, textbooks, and more.
Because of this, Filipinos have developed their English accents matching those of Westerners, particularly Americans. This has helped them adapt to the English fluency needs of international BPO companies, especially for voice support tasks.
If the English fluency’s not enough to amaze you, then let the country’s 95.6% literacy rate do the honor. Not to mention that 70% of this percentage are fluent English speakers.
2. Suitable for businesses of all types and sizes
Outsourcing has evolved from a multimillion-company exclusive to an open option for businesses from startups to established ones. The good news is, the Philippines has also adapted to this evolution in the industry.
Startups and medium-scale businesses are now outsourcing their needs to smaller virtual teams and outsourcing companies in the country. The variety of outsourced tasks to the country has expanded from the all-time favorite voice support tasks. Today, businesses also outsource their marketing, IT or web development, and administrative tasks, to name a few.
No matter the scale of your outsourcing needs, your budget, and your business, you’ll always find a rockstar talent in the country to handle your outsourcing needs.
3. Offers cost-efficient manpower for businesses
What most businesses love about outsourcing to the Philippines is its cost-efficient pricing. You can enjoy freedom from your repetitive tasks at a price that doesn’t break the bank. But, despite the low price, you won’t have to worry about impeding the overall performance of your business.
You won’t need to worry about making extra investments in extra office spaces, equipment, or electricity. Your chosen outsourcing company handles this for you, as well as management costs and other liabilities.
All you’ve really got to do is lay back and wait for the results to flood in.
4. Continuous support from the government
The outsourcing industry has become a huge contributor to the country’s growing economy over the years. To support this, the government has taken extra steps to nurture the BPO sector in the Philippines.
For instance, the government has offered tax incentives for foreign investors to encourage more companies to extend their operational grounds in the country.
The government has also partnered with several universities nationwide to develop BPO-specific curriculums. This is to produce more competent Filipinos to deliver their talents to the BPO workforce.
They have also established the Technical Education and Skills Development Authority (TESDA). The institute offers call center training to further polish the skills of Filipino adults who want to become a part of the BPO industry.
The Department of Information and Communications Technology is also offering free training to Filipinos who wish to become digital marketers and virtual assistants to businesses looking for help with these areas.
5. Cultural compatibility
The Philippines has been under the American colonization for 48 years. During this period, the adoration for Western culture and media has slowly integrated into the Filipinos’ way of life. The effect of this exposure is evident with the local’s familiarity with the English language and their adaptation of their behavior, attitude, and trends today.
Their exposure to Western media and culture has helped them adapt to international cultures effortlessly. This made it easy for businesses to get along with their Filipino employees, and for Filipinos to cater well to an international range of customers their employers serve.
6. High-skilled reliable pool of talents
The Commission on Higher Education (CHED) reported that there were 751,310 graduates last 2018. Most of these fresh graduates seek out a job in the BPO sector. In turn, the industry is enjoying fresh talents with dedication while training them to become adept with the needs of BPO companies.
Filipinos are also taught to read at a young age throughout their school days. The country believes teaching its citizens the universal language and cultivating their love for reading are important to develop a competent workforce in the country.