Fb Pixel Where To Outsource? Why The Philippines Is A No-Brainer

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

outsourcing destinations

outsourcing destinations

 

Are you facing the dilemma of deciding where to outsource some of your non-core business activities?

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 propeller of growth is cost optimization. An even more important propeller is the global quest for talent and excellence.

We live in a small world which becomes more interconnected through the widespread use of various gadgets, software applications, and high-powered internet connections.

Within a matter of seconds, Western companies can get insights from an expert who works at the other side of the world.

It’s also a no-brainer why the Philippines is rapidly becoming one of the largest outsourcing destinations around the globe.

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 preferred overseas site for voice-based services in outsourcing.

Since 2011, more and more US companies rely on Filipinos to do outsourcing work. The rapid multiplication 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

outsourcing destinations

Image source: World Economic Forum

 

The success of the Philippines in the outsourcing industry is mainly attributed to its high-skilled and well-educated workforce. A World Economic Forum article ranked the Philippines as the third proficient English-speaking country in Asia with a 60.33 literacy rate. Reputable universities and colleges provide a 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 the information technology sector. The country has a substantially lower cost of living compared to other countries. This is among the major reasons why the 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 ideas can be traced back to 400 years of shared culture with Spain and the US. This continues to shape the lifestyle of Filipinos, including the ability to communicate and build rapport easily with people from different races.

 

High-quality telecommunications

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 reliability 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.

 

Data privacy and cybersecurity

The BPO industry is among the most vulnerable or high-risk sectors in terms of data breaches and cybersecurity threats. It is a good thing that the majority of Philippine BPO companies comply with international data and information security standards. At the end of the day, it is not only about the quality of service being delivered to customers but also about the manner used to protect their data.

 

Industry upgrade

Around 2018, automation started threatening call center jobs in the country. Despite this, many still argue that artificial intelligence can’t provide the same level of service and empathy to irate customers — reassuring the stability of the industry.

Humans and automation aren’t supposed to clash anyway.

A World Economic Forum article puts it this way: “While machines will be increasingly powerful, humans will actually be more essential.”

In what way can humans take advantage of machines?

Skills upgrade.

The Philippine BPO industry has started to encourage their employees to level up their creative and technical skills to meet the demands of this technology-driven world because if they know how to manipulate AI, they wouldn’t end up as slaves of automation.

 

How to outsource in the Philippines

Looking for outsourcing destinations is easy. Choosing a BPO partner is quite a task. But maintaining a good business relationship is challenging.

When you are planning to outsource in the Philippines, there are certain steps that you need to consider to ensure a successful business relationship.

First, it should all begin inside. Determine the business functions that you need to outsource. Outline the elements needed for the task. What are your expectations and limitations? Only by knowing what you need on the inside will you be able to find the perfect BPO partner that can assist your business well.

Second, identify the tools that the function would need. Check if the BPO company had a similar software, or if it is willing to provide it. Aside from the tools, determine as well the number of staff that you need and the estimated time to complete a project. Is it a long-term partnership or a short one?

Third, identify your outsourcing budget. After this, you can get a quote from the short-listed companies that you have.

The Philippines is one of the perfect outsourcing destinations in the world because of the reasons listed above.

If you’re interested in this business activity, contact us now so we’ll know how to help you.

Magellan Solutions
Magellan Solutions
Magellan Solutions is a Filipino-owned outsourcing company. It provides inbound and outbound contact center services as well as other business process outsourcing (BPO) services that cover finance and accounting, healthcare, sales and marketing, engineering, architecture, design, data management, human resources, legal, and IT. Combining years of experience; unrivaled expertise; and capabilities across industries and business functions, Magellan Solutions bring optimum approaches to strategies of business operations by delivering customizable BPO and customer management solutions to any type and any size of business.