7 Reasons Why You Should Outsource in the Philippines

outsource in the Philippines

Why Should You Outsource at all?

In today’s uncertain economy, business process outsourcing (BPO) can be a powerful tool for companies to access talent, mitigate risk, improve quality, and reduce costs. If your company is in the process of expanding, then you should consider outsourcing.

The most common outsourced activities have always been customer support, accounting, back office and IT. However, since the capabilities of global providers have grown, so has the range of outsourced processes. Firms can now outsource virtually any process that can be handled remotely, including high-level application development, logistics support, healthcare, legal, marketing, e-commerce, community moderation, and more.

Leading Countries in the BPO Industry

Along with India, the Philippines is a leading outsourcing destination. While India is known for its IT and software development, the Philippines excels in customer service and back office services. Although the BPO industry in the Philippines was merely initiated in 1992, it soon became “the BPO capital of the world,” due to its outstanding English skills and cultural affinity with the West.

The country has continued to remain at the forefront of the industry as employers have invested heavily in training and new technologies, while tools for remote collaboration and the management of higher-level processes have improved over time. Revenue from the country’s BPO industry is expected to increase to $2.5 trillion in 2023. You should consider outsourcing in the Philippines because it can impact your business exponentially.

Why Should You Outsource in the Philippines?

The reasons why outsourcing in the Philippines can make your business thrive are as follows:

1. The Philippines is one of the top English-proficient countries for business

According to the EF English Proficiency Index 2021, the Philippines ranks 18th out of 112 countries. Although the national language in the Philippines is Tagalog, English is frequently used. Around 93% of the country is fluent in English, and the language is taught in schools. Because of this, Filipinos have a neutral accent that makes outsourcing in the Philippines easy and efficient.

2. The Philippines has strong cultural ties with the West

The Filipino culture has been heavily influenced by its past 48 years of American colonization. This foreign involvement impacted the country’s governmental, educational, and economic systems. In fact, the Hofstede’s framework —a tool used to understand differences across countries —established that the US and the Philippines are both driven by competition, achievement, and success. These similarities ensure a successful business partnership.

3. The Philippines has BPO support from the government

The Philippine government supports the outsourcing industry because the BPO sector is one of the top contributors to the country’s economy. Their support includes regulations and incentives that motivates international companies to outsource in the Philippines. For instance, the Philippine Economic Zone Authority (PEZA) promotes the establishment of economic zones in the Philippines for foreign companies. On that same token, the country has laws that provide tax and non-tax incentives for local and foreign businesses.

4. The Philippines has a wide global talent pool

With more than 680,000 college graduates  every year, the Philippines has a remarkably high standard of education. If you factor in their English proficiency, then you’ll have access to skills and talents at the same or even higher caliber of people back home. Universities even have BPO-specific curricula to prepare the future outsourcing workforce. This customized type of education can help your company gain valuable employees that know how to prosper in a BPO setting.

5. The Philippines gives you a time-zone advantage

Outsourcing in the Philippines

If you outsource in the Philippines, you’ll be able to adopt a “follow the sun” workflow. This means that while your “in-house” staff is done for the day your offshore team will be getting things done —you might even wake up to finalized projects the next morning. This strategic way of operating will speed up your delivery cycle which may translate into higher conversion rates.

6. The Philippines ensures data security and privacy

Since the BPO sector in the Philippines handles very sensitive data —such as US health insurance, personal financial data, and medical records— the county established the Data Privacy Act in 2012. This law protects all forms of information handled within companies in the country. This encompasses all private, personal and sensitive data, which raises the country’s policies up to international security standards.

7. Outsourcing in the Philippines is cost-efficient

Although you may find top notch services at home, there’s a peculiarity that makes the Philippine stand out —its cost efficiency. Due to differences in economy, wages in the Philippines are significantly lower than those in the USA. Additional cost reductions of outsourcing in the Philippines are: the exemption of investing on Medicare taxes, Social Security benefits, health insurance, workers’ compensation, and other costs associated with US-based employees.

In Summary…

You should outsource in the Philippines because its numerous beneficial reasons will bourgeon your business.

The Philippines offers a unique combination of low costs, mature processes, and ease of communication that cannot be found in other destinations. So if you’re considering distributing your workforce to leverage labor and cost challenges, then outsourcing in the Philippines might be your answer.

We invite you to follow us on social media and to visit our website to learn more about our services.

banner-finalAbout Us: Sourcefit 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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