Over the past few years, the Philippines has become one of the most preferred business process outsourcing (BPO) destinations in the world.
But why are businesses choosing to outsource their business processes?
As the costs of business operations continue to rise, companies have been forced to operate more efficiently. Business process outsourcing is one of the most effective cost-cutting measures.
Outsourcing allows you to delegate certain tasks and administrative functions to offshore staff.
The BPO company will pursue cost-efficient operations. All the while maintaining a high level of service to your company and clients.
The following are some of the benefits of Philippine outsourcing.
1. Competitive Costs with High Level of Service
Still, a developing country, the costs of living in the Philippines are a lot less than those of first world countries and other mature economies.
As such, when you outsource to the Philippines, you can expect a high level of service but only at a fraction of the cost.
This is because the costs of infrastructure, office space, equipment, legal, and recruitment are not as expensive as those of a mature economy.
Compared to its neighbors, the Philippines has a much lower Consumer Price Index (CPI) for food, transport, and other utilities.
The minimum wage in the Philippines is about $9 or £6.45 per day. As such, for less than $500 a month, the Philippine outsourcing company can recruit a competent and qualified individual to work for your business.
The low costs of operation and CPI along with the competitive salary rate allows foreign companies to get stellar services while saving a lot by investing in the Philippines.
2. Operational Efficiency
The Filipinos have earned the trust of multinational corporations. One of the reasons is the low costs of doing business in the country.
Additionally, there is consistent delivery of top-notch services by a competitive workforce.
The 2010 National Census Report revealed that the Philippines has a literacy rate of 97.5 percent. Additionally, it generates about 450,000 university graduates every year.
This makes the quality of the Filipino workforce, one of the highest in the globe.
3. Immediate Labor Pool Availability
One of the biggest demographics in the Philippines is the new graduate and above age group. As such, there’s an abundance of talent looking for jobs.
This makes the Philippines the ideal place to outsource for a wide range of industries. Such as customer support services, legal and business support, information technology, and more.
Recruiting is also a hassle-free process. This is because Filipinos are always eager to discover new opportunities.
4. Communication Skills
The Philippines is one of the most English-proficient countries in Asia. This is what makes most companies consider the Philippines first due to the ease of communication.
English, in fact, is one of the Philippine’s official languages. It is used as the primary instruction medium in the country’s education system.
Additionally, Filipinos have been trained to speak with a neutral accent. That combined with a good command of the language not only enhances seamless communication between them and yourself but also with your clients.
This is especially relevant if you are in the customer service industry.
5. Flexibility and Diversity
The Philippines has a diverse culture. This is as a result of interactions with people from varied backgrounds. This has greatly influenced their ways of living and thinking. Filipinos are generally very open-minded people.
That open-mindedness a crucial element in the workforce. It allows you to have employees who are willing to learn different things. As such, they are more likely to serve you better.
Additionally, you will find that Filipinos are very flexible when it comes to time schedules. Many people are open to working odd hours to cater to your needs.
6. Innovative Technology
The continued adoption of new technology in the country has been one of the bigger contributory factors towards the success of the BPO industry in the Philippines.
Internet Service Providers, telecommunication companies, healthcare, and other industries are pushing the limits to obtain the latest technology in the market that aligns with the needs of investors.
From office leases in high-end buildings to seat-rentals in central business areas, all the infrastructure needed to facilitate your business processes is readily available.
Offices that are highly accessible throughout the metro can be found around every corner.
As an investor, you have the freedom to choose where you want your business to be set up due to the wealth of sites available.
Filipinos have not only adopted the Western Culture but also its lifestyle as well. As such, Filipinos are adept at effectively communicating with their industry partners since they tend to share similar interests.
Whether it is pop-culture, politics, or sports, the tastes of Filipinos are very similar to those of westerners.
This preference to the Western way of life has seen to Filipinos being especially effective in the customer service field. The ability to relate and build a rapport with customers is what allows for effective business transactions.
9. Robust Government Support and Business Incentives
The influx of business process outsourcing firms provides mutual benefit for both the country and foreign companies. As such, the Philippine government has taken on a number of measures to support it.
The Philippines’ legal regulatory framework, as well as financial reporting policies, are all based on the American guidelines.
In 1995, the Special Economic Zone for local and foreign enterprises was established to ensure transactions were conducted seamlessly.
Other business incentives that foreign businesses can enjoy in the Philippines include exemptions on local permits and taxes, duty-free import of capital equipment, and is exempted from corporate income tax for a number of years.
Philippine Outsourcing: Is it Worth It?
As a business, your aim is to make as much profit as possible. That will not be possible if you are spending top dollar on tasks and functions that would be less costly if they were outsourced.
When you enlist Philippine outsourcing services, you will enjoy top-tier quality at just a fraction of the cost, allowing you to grow your business.
Be sure to scope out our blog for insights that could help your enterprise become more profitable.