What makes businesses want to outsource to the Philippines?

With lower costs of living and cheaper labor, many top executives choose to outsource to the Philippines. But minimizing company expenses is not the only thing you can do. There are many more reasons why the country is an excellent location to expand your business.

Saving money is often the first thing that attracts business owners to outsourcing, however, the high levels of education, English proficiency and cultural similarities are generally the reasons that businesses stay and often expand their outsourced operations. 

According to the 2019 A.T. Kearney Global Services Location Index, the Philippines holds the 10th spot for the top outsourcing destinations in the world. This is largely because of the business environment, people skills, availability and financial attractiveness. It is an ideal location for outsourcing back office and professional roles. Many customers also find the culture fits well with their businesses.

Filipino workers are known to be honest, loyal, hospitable, highly responsible and committed to what they do. They value their work and go about their day following the high standards set by their clients.

6 reasons why you should outsource to the Philippines

  • Workforce

One of the many advantages of outsourcing business in the Philippines is its workforce. With a current labor force of over 60%, productivity growth has been increasing year on year. This is ascribed to the skilled, adaptable and highly educated workforce population. The country also has a high literacy rate (about 98%) which is equal with Western countries like Canada, UK and USA.

Filipino people are also known for their employability. This is because of their hardworking nature. The younger demographic is also highly attuned to modern technology and digital trends. 

  • English Proficiency

Building a skilled workforce is important, but effective communication is critical. The Philippines is the third-largest English-speaking country in the world. English is one of two official national languages, and is the preferred language of the Philippine government. It is also the formal business language and the language of instruction in schools and universities. Likewise, English is the primary language for public signage, newspapers and magazines.

The accent is often described as ‘neutral’ and is closest to the general American accent. While there are other global outsourcing destinations that offer cost savings, none of them can match the English proficiency levels seen in the Philippines. 

  • Culture

The Spanish and Americans ruled over the Philippines for hundreds of years and, as a result, have left behind a culture that is well suited to doing business with Western countries. 

Being empathetic, cheerful and hardworking are among the regular qualities of Filipinos. These qualities help them to interact with a wide array of customers across all cultures. 

  • Time zone

When business leaders outsource to the Philippines, they get to build a round-the-clock workforce. Many companies operate 24/7 for the entire year. Having that time zone difference will allow you to show how hard your company is working to provide a one-of-a-kind customer service.

For Australian companies especially, the Philippines is the ideal choice as it shares the same time zone with Western Australia and there is only a few hours difference with the east coast.  

No matter where you are in the world, your outsourced staff in the Philippines can work the hours that you need. Filipinos are willing to adjust to any given time zone so they can work on a specific schedule when needed.

  • Labor cost savings

Cost-effective business solutions are a driving factor for companies to expand their business in the Philippines. Generally, the labor cost is about 70% lower compared to the US. 

Large enterprises aren’t the only ones who can benefit from outsourcing. Startup companies and SMEs can also outsource, even with a smaller budget. On top of the staff salaries, overhead costs in the Philippines are also lower than in other Western countries.

  • Government

The BPO industry receives an ample amount of support from the Philippine Government. Foreign business owners enjoy a number of incentives and safeguards that are designed to facilitate business in the country. One of the most significant measures is the Data Privacy Act. It provides a guarantee for foreign companies that the country adheres to the International Data Privacy Standards. This is especially important for companies that share sensitive data with their service providers. Another key form of support is the Philippine Economic Zone Act or PEZA. It offers foreign investors tax exemptions, incentives, and other privileges. 

Choose your outsourcing location

For all of the aforementioned reasons, the Philippines is a great place to do business, but where in the Philippines should you set up your operations?  At Cloudstaff, we are all about giving our customers choice. We have eight offices in the Philippines to choose from that are situated throughout Clark, Manila and Cebu.

All Cloudstaff offices in the Philippines are carefully chosen to make them convenient for all employees. We want to be close to where the staff live and have ready access to public transport hubs. At the same time, Cloudstaff can carefully match and present the best candidates who suit our customers’ requirements.

Having offices across different locations also allows us to tap into the different talent pools which exist. Some areas may have better English speakers while other areas may have a higher concentration of a particular skill set. We make sure that we provide clients with the best and most competent staff to help them achieve their business goals.

As a trusted outsourcing company, Cloudstaff also offers you a valuable tool for your business continuity planning. Should you experience a major issue in one location, such as a natural disaster, we can help transition your staff to other locations so they could continue their work with minimal down time. 

Take your business to the next level with your own outsourced team of skilled experts. Drop us a message at info@cloudstaff.com.

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