Why smart businesses are outsourcing to the Philippines

Why-Smart-Businesses-Are-Outsourcing-to-the-Philippines_1200x628-1-1The Philippine outsourcing sector is not just growing; it’s thriving. The global demand for outsourcing services is expected to reach a staggering USD 525.5 Billion by 2023, expanding at a compound annual growth rate from 2023 to 2030.

This dynamic Southeast Asian nation has become the go-to destination for businesses looking to leverage outsourcing for a multitude of reasons.

It’s no wonder companies worldwide are shifting their processes to the Philippines!

Check out our Sourcefit Blog to learn exactly why smart businesses are outsourcing to the Philippines, and why your business should be considering the same.

Compatible cultures: bridging the gap with ease

Effective communication and mutual understanding between outsourced staff, customers, and local employees are critical for success.

The Philippines excels in this area. English is pervasive across Philippine society, from television and movies to education and government. Students are taught in English, and Western culture heavily influences the country.

This cultural affinity results in Filipinos speaking English fluently, with a neutral accent and a deep understanding of Western culture. It’s easy to create an offshore team in the Philippines that mirrors the culture and values of your onshore operation, promoting seamless integration.

Low costs: the financial advantage

One of the primary drivers of outsourcing is cost savings, and the Philippines excels in this regard. Labor costs in the country are significantly lower than in developed countries.

With a minimum daily wage of around $8 and competitive salaries for skilled professionals, businesses can substantially reduce their staffing expenses. While Manila boasts the best English speakers, other regions offer even more cost-effective options.

Beyond labor, the Philippines offers affordable office rental, professional services, office supplies, and more. This means substantial savings across the board, allowing companies to focus their resources where they’re needed most.

Highly-educated, highly-skilled workforce: A wealth of talent

The Philippines produces around 3 million new graduates each year, equipped with high-end higher education skills and qualifications.

Manila also offers a robust professional certification and continuing education system, ensuring a steady stream of specialized talent. Many Filipinos have experience working for global tech giants like IBM, Dell, Samsung, and Texas Instruments, adhering to international standards.

The demand for skilled positions is high in the Philippines, creating a positive environment for businesses seeking specialized talent. This stands in contrast to other outsourcing centers where finding and retaining skilled employees is a major challenge.

Economic growth and stability: A bright outlook

Revenues in the Philippines’ business process outsourcing industry rose more than 10% to $32.5bn last year

The Philippines has emerged as a standout outsourcing destination due to its flourishing economy and unwavering commitment to the Business Process Outsourcing (BPO) industry. With a steady trajectory of economic growth, the Philippines has cemented its status as a stable and attractive hub for outsourcing ventures.

One key factor driving this growth is the unwavering support from the Philippine government. The government actively encourages the BPO sector by offering direct tax incentives to businesses operating in this industry.

These incentives not only reduce the tax burden on BPO companies and their partners, but also enhance their overall competitiveness. Furthermore, the government continues to make substantial investments in critical infrastructure, ensuring that the country remains technologically advanced and well-equipped to meet the evolving needs of the outsourcing industry.

Moreover, currency trends work in favor of businesses outsourcing to the Philippines. The Philippine peso offers a competitive advantage compared to other currencies, allowing companies to optimize their operational costs.

The Philippines’ flourishing economy, unwavering government support, a flexible labor market, and favorable currency trends collectively, render the country an excellent choice for businesses looking to tap into the benefits of outsourcing, while ensuring stability and cost-effectiveness.

Why outsource to the Philippines 6 Reasons -Ready to connect to growth?

Outsourcing to the Philippines offers a fast, cost-effective way to hire and retain hard-to-find talent and expand your business. Partnering with the right outsourcing provider can unlock business-positive results for your business, driving growth and success.

Consider the Philippines for your staff leasing needs and experience the numerous benefits firsthand.

Contact Sourcefit today to explore tailored solutions that drive your business forward.

banner-finalAbout Us

Sourcefit – your preferred accounting service provider –  is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth ChampionHR Asia Awards, among others.

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