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Home | Blog | Outsourcing to the Philippines: a Good Place to Begin Your Startup

Outsourcing to the Philippines: a Good Place to Begin Your Startup

By Magellan Solutions

Updated on December 11, 2023

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The outsourcing industry loves the Philippines. There are a number of reasons why. Recently lauded as the world’s second-fastest-growing economy, the Philippines attracts more and more startups with its booming outsourcing industry. The country has been undertaking an important role in the efficient and sustainable expansion of startups by giving them access to offshore talent, according to an article recently published in Harvard Business Review.

As many startup founders and entrepreneurs turn to outsourcing, they find the Philippines in a good position to help them scale their portfolio of products, services, and engagement channels to a billion-dollar business. The economic climate attracts the startup scene that is recently popping up to capitalize on generous opportunities offered by the growing market. These are the country’s latest customers who are making their way to the forefront of the current market.


Benefits of Outsourcing to the Philippines

Philippine Outsourcing: More Than Cost Savings

Outsourcing to the Philippines is no longer just labor cost savings; the benefits go beyond simple cost-cutting and getting low-cost skilled work done. According to the recently published Philippine Startup Report written by Mr. Ron Hose, the Philippines has great potential in becoming a startup hub as indicated by its investment grade ratings, large English-speaking population, low operating costs, and growing cohort of entrepreneurs.

Carefully selecting the best location for your startup business is integral to success. In fact, some of the advantages of how your startup can benefit from the Philippines are not actually a secret:

• Filipinos have high-end skills

Given that startups don’t want to spend their resources worrying about simple tasks, filling the vacancies with highly flexible and diverse employees is one of your best interests for the business. Hiring the right people could either make or break your startup business.

With over 40 million active labor force and a 95 percent literacy rate, the Philippines offers a bounty of talented and skilled individuals who can handle a variety of diverse tasks—from data entry to customer support and everything in between.

As the BPO industry continues to flourish, the Philippines is becoming the perfect location for seeking high-quality personnel who are skilled in what you may be looking for mobile development, data analytics, video production, SEO writing, or accounting.

• Boost innovations and changes

In a growing startup company, innovation is difficult when you are within the box of an existing idea, or business strategy you have in mind. Sometimes the best way to drive innovation is for internal employees to wear multiple hats.

Outsourcing non-core competencies provides focus to your internal team’s skills and passion. In this case, you need to identify experts who have the potential to be co-creators in the innovation process. Having a Philippine-based offshore team means having fresh sets of eyes and new ideas. Your offshore team could provide unbiased feedback and inspire positive changes within your company. You will also develop new methods and standards that will improve your business.

• Time difference works to your advantage

The time difference between you and your offshore team works to your advantage. 24/7 cover is something many businesses would not be able to afford in-house but outsourcing can let you sleep soundly at night. Since your night is their day, your offshore team can take over and continue your work even after you go home. With effective system and good coordination, you can leverage different time zones to deliver necessary tasks round-the-clock.

• Cultural affinity with the West

The Philippines is the best choice when it comes to the cultural climate. Compared to other offshore destinations in Asia, Filipinos are far more attuned to Western culture because of the media, the education system, OFWs, and many more reasons. Filipinos also have a good knowledge of American English. The Philippines has Westernized professionals who can make communicating and conducting business transactions easier.

• Keep control of processes and costs

Ceding control remains one of the greatest fears for many entrepreneurs. For startups, knowing when to let go can be difficult but it is the only way to be successful in today’s modern connected world. You only need to learn how to balance the need between retaining control and cost savings. You take advantage of the lower costs while you allow the offshore team to create innovative solutions that will meet or exceed your expectations. The fewer obligations you have, the better control you gain especially in saving money. This leaves you with additional funding to make post-launch adjustments—cash that would have otherwise eaten up during the early stages of your startup.

• Achieve a work-life balance

As the startup owner, you require an extraordinary amount of time and effort which leaves you little time to spend on yourself, your family, and your friends. Running a startup is an exhausting process and is not conducive to creativity that can help propel a business forward. If you strategically outsource your startup, you benefit from work-life balance. Building an offshore team in the Philippines gives you more time to laser focus on what you enjoy and smell the roses once in a while increasing your earnings substantially.

Founding a startup is unbelievably hard, choosing to outsource takes off some tasks on your plate. The offshore team located in the Philippines will do all the menial tasks, while you focus on growing the business. As such, you work in your company, not in your company.


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    Outsourcing to the Philippines: a Good Place to Begin Your Startup

    Magellan Solutions

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