One of the best ways to take advantage of the global growth of remote work infrastructure is by utilizing the cost and time benefits of outsourcing. If you’re a business owner looking for growth avenues, or an employer seeking the most cost-efficient ways of securing talent, outsourcing to the Philippines can offer you significant competitive advantages. The country boasts a well-established reputation as a global leader in outsourcing, supported by its vast workforce that excels across various industries.
With over 1.3 million professionals employed in the outsourcing sector, the Philippines is home to a broad spectrum of outsourcing services, including information technology, customer support, hospitality, financial services, and more. These services are delivered by both prominent outsourcing firms and highly capable individual freelancers.
In today’s blog we’ve compiled a list of ten reasons why you should strongly consider outsourcing to the Philippines:
Outsourcing to the Philippines can reduce your operational costs substantially. Labor costs in the Philippines are considerably lower than in the U.S. and Europe. For example, an IT specialist in the Philippines might cost 50% less than one in the U.S., allowing you to budget more flexibly and allocate funds to other critical areas of your business. This cost effectiveness extends beyond salaries to include reduced expenditures on office space, utilities, and HR.
The educational system in the Philippines produces a pool of graduates every year who are not only proficient in English but also well-versed in technical and specialized fields. Whether you need expertise in legal services, digital marketing, or software development, you'll find professionals in the Philippines who match your requirements due to their rigorous education and training standards. This institutional investment has resulted in demonstrable dividends for the island nation, with the Philippines making up 13% of the global BPO market share.
The workforce in the Philippines is among the best English-speaking outside the native English-speaking world, ensuring seamless communication. This proficiency is critical in tasks that require interaction with your customers, such as call center operations, technical support, and content creation, ensuring that messages are delivered clearly and professionally.
The Philippines has a unique cultural affinity with the West, which is rooted in its history and exposure to Western media. This compatibility means Filipino workers can engage more naturally with Western business practices and customer interactions. For you, this results in fewer misunderstandings and a more cohesive working relationship. The high importance of the BPO sector to the Philippines' economy also makes working in this sector a point of pride, resulting in a more engaged workforce.
The strategic geographic location of the Philippines allows for 24/7 operations, catering to global customer bases. If your business is based in North America or Europe, outsourcing to the Philippines can provide you with the advantage of having operations continue even after your local office hours, thus enhancing productivity and customer service. This enhancement is even more pronounced if you’re engaging them for asynchronous tasks where the offshore team can build on your in-house team’s work and vice versa, effectively doubling your productivity.
Flexibility is a key advantage when outsourcing to the Philippines. Whether you need to ramp up your team quickly to handle a surge in customer service requests or scale down post-project completion, the infrastructure and workforce availability in the Philippines can accommodate your needs without the financial risks of a fixed employment contract. Compared to hiring new resources in-house, which is often a long-drawn and time intensive task, scaling outsourced operations is significantly easier and faster.
Over the years, the outsourcing industry in the Philippines has diversified into niche areas including healthcare management, creative design, and tech development. This specialization means that you can access expert services tailored to your specific industry needs, enhancing your business's efficiency and quality of output. The Philippines is particularly known for its hospitality and adjacent sectors, and also has plenty of expertise in IT fields.
7.5% of the Philippines’ GDP comes from their BPO industry, giving the government incentive to keep the wheels of the sector well-oiled and functional. Thus, the Philippine government offers various incentives to the outsourcing sector, such as tax breaks and simplified export procedures, creating a business-friendly environment that minimizes operational hassles for foreign companies. What all of this means for your day-to-day business is the near-guarantee of no sudden regulatory changes that could disrupt operations or upset your strategic partnerships.
Recent investments in infrastructure, particularly in telecoms and internet technology, have equipped the Philippines to handle high-volume, high-speed internet transactions and communications, ensuring reliability and continuity in services. The 2012 Data Privacy Act enforced international security standards across their BPO sector, building on their already strict regulations that keep sensitive information private and secure.
Many outsourcing providers in the Philippines focus on building long-term relationships, which means they invest time in understanding your business values and goals. This approach translates to customized service delivery that aligns closely with your long-term strategic objectives, leading to better integration and sustained business impact.
Choosing the Philippines as your outsourcing destination is not merely about cost savings—it's about enhancing your business's capability to innovate and compete in a global marketplace. The blend of a skilled, adaptable workforce, cultural compatibility, and strong governmental support makes the Philippines an ideal partner for businesses looking to optimize operations and drive growth. Whether you're a startup looking to scale or an established company seeking efficiency, the Philippines offers a comprehensive ecosystem to support your ambitions.
Founded by serial entrepreneurs, Leverage Assistants is a white-glove service that helps you find 1% assistants and then teaches you how to build leverage with them. If you're interested in a strategy session to learn how to use an assistant, click here.
Stephen is one of the founders of Lumiere and a Harvard College graduate. He founded Lumiere as a Ph.D. student at Harvard Business School. Lumiere is a selective research program where students work 1-1 with a research mentor to develop an independent research paper.
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