Location matters even when outsourcing. Philippines over the years has become one of the most sought-after destinations for outsourcing. It has a combination of many suitable factors which are ideal for businesses who are looking to build offshore teams. Here are several reasons many companies choose to outsource to the Philippines and why you should too.
Strong Government Support
As one of the economic pillars and main revenue generators of the country, the government has taken up an active role in clearing the way for the growth of the outsourcing industry in the Philippines.
This has resulted in government spending on IT infrastructures, passing of favorable regulations and tax incentives for foreign investors, partnerships to promote training programs specific to the industry, and establishment of economic zones in key locations around the country.
Cultural Compatibility and No Language Barrier
A former colony of Spain and USA in various points of history, the Philippines is one of the very few Asian countries that has Western culture entrenched in its people’s everyday lives. Most Filipinos also grew up watching Western media and pop culture—making them highly adaptable to foreign cultures.
To top it off, around 70% of Filipinos are fluent in English. The Philippines is the third largest English-speaking country in the world, second only to the US and UK. Most children learn the language even before they start going to school. Their English proficiency is further reinforced once they start getting a formal education.
Top Talent with Excellent Work Ethics
Companies can hire a skilled, ready, and willing workforce much faster in the Philippines. Annually, more than 450,000 students graduate from universities and institutes –many of whom grew up in a world with technology and has an innate understanding of how technology can be leveraged for better business solutions. Most often, they already possess the skill sets and service-oriented mindset relevant to the outsourcing industry.
Quality and Cost-Effective Services
Labor cost in the Philippines is almost half of that in western countries. This is because of the low cost of living in the country. The daily salary of a Filipino professional for instance can amount to only the hourly salary of an employee in the US.
If you sign up with an outsourcing company, you also save on other tertiary costs such as paying for an office space, legal and HR costs, latest equipment, taxes, and more. In fact, business owners can save up to 60% in costs simply by outsourcing to the Philippines.
The good thing about outsourcing in the Philippines is that business owners pay less for more. Filipino talent is a low-cost alternative for businesses, but that does not mean quality is jeopardized. Filipinos strive to produce quality work. According to many independent research publishers, the outsourcing industry in the Philippines regularly ranks at the top of service delivery quality surveys conducted across the globe.
Choose Philippines as Your Next Outsourcing Destination
The success of the outsourcing industry in the Philippines can be attributed to the many advantages the country offers to investors. If you are still curious about the advantages of outsourcing to the Philippines, ask Maquiraya and Associates, Inc.