Don’t Know Where to Outsource? Why Philippines is a No-Brainer

Don’t Know Where to Outsource? Why Philippines is a No-Brainer

manila sunset

It’s a small world after all. The technological revolution that has been taking place allows for the growth of industries around the world. It’s a no-brainer that most businesses, especially in the western part of the globe, have been outsourcing their work. It’s now commonly acknowledged that the main propellers of growth is cost optimization. An even more important propeller is the global quest for talent and excellence.

It’s also a no-brainer why the Philippines is rapidly becoming the largest outsourcing destination around the globe. The country made up of 7,107 islands is put on the map for this very reason.

Already serving companies in North America, Asia Pacific and Europe, the Philippines established itself as an important offshoring service destination and international industry leader in voice-related work. The United States, for example, makes the Philippines its top overseas site for voice-based services in outsourcing. Since 2011, more and more US companies rely on Filipinos to do outsourcing work. The rapid increase of different countries who invest in the Philippines clearly proves that the country should be the best choice for your outsourcing needs.

Still not convinced? Here are five really good reasons why the Philippines is the perfect environment to outsource your business:

Specialized and available workforce

The success of Philippines in outsourcing is industry is mainly attributed to its high-skilled and well-educated workforce. The country is the third largest English speaking population in the world and has a very high literacy rate of about 92%. Reputable universities and colleges provide large number of candidates to meet the demands of the rapidly growing outsourcing industry. More than talent, Filipinos are naturally friendly and hardworking—values suited for the service-oriented nature of outsourcing.

Cost-efficient advantage

The Philippines is consistently ranked as one of the most cost-competitive outsourcing destinations particularly in IT industries. The country has a substantially lower cost of living compared to other countries. This is among the major reasons why salary in the Philippines are at a small percentage of those in Western countries. Beyond labor costs, the operational expenditures are undeniably cheaper such as office space, utilities and equipment. These significantly affordable costs allow business owners and investors to save more and earn higher profits at the same time.

Cultural Adaptability

The Philippines has a rich historical culture. Its receptiveness to Western culture and ideals
can be traced back to 400 years of shared culture with Spain and US. This continues to shape the lifestlye of Filipinos, including the ability to communicate and build rapport easily with people from different races.

High quality telecommunications

The country has been known to have a well-developed telecommunications infrastructure relative to other countries in Asia Pacific region. This makes the Philippines ideal for outsourcing operations. The country’s fast expanding and rapidly improving telecommunications and IT infrastructures are notably adequate to support corporate transactions of outsourcing companies. Digital connectivity is strong and consistent which enables reliabiity and convenience for an outsourcing environment.

Government support

The strong support of the Philippine government has enabled the outsourcing industry’s continued growth. The government has actively encouraged investment through fiscal and non-fiscal incentives. Depending on the nature of the business, incentive packages include income tax holidays and duty-free importation of specific equipment. The industry has become one of the main revenue drivers of the country which is why outsourced companies are entitled to special privileges from the government. On top of these benefits, the government also focused on developing human capital through education and training to produce more talents for the outsourcing sector.


image courtesy of Nengkoy



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