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3 Key Benefits of Outsourcing to the Philippines

by: Mary Christine Galang

Monday, September 18, 2017 |

In 2011, The New York Times reported that the Philippines has overtaken India as the 'call center capital' of the world. Since then, the information technology-business process outsourcing (IT-BPO) sector has become the key economic driver in the Philippine and is projected to be worth $220 billion by 2022.

This continuous rise to the outsourcing industry in the country can be attributed to several factors, including the robust macroeconomic expansion seen in the five years under former president Benigno Aquino III, which the current administration pledged to see through.

Reasons to outsource to the Philippines

Foreign investors continue to express their interest and sustain partnerships with local outsourcing companies for three key reasons:

  1. Lower operational costs. Businesses can save as much as 75% in wages alone and as much as 60% in overhead costs. Your outsourcing partner will take care of the typical employee benefits mandated by their country of origin, office space, equipment, taxes, and other related costs such as HR and legal. Moreover, you are guaranteed with continuity of operations at lower costs.
  2. Access to global talent. The Philippines has a young, highly educated workforce with versatile skill sets and diversified backgrounds. Employees undergo the necessary skills training for efficient execution of tasks in multiple sub-sectors and higher value industries. In addition, the Filipinos' natural hospitality, English proficiency, accent neutrality, and exposure to and influence from Western culture are much more preferable to delivering clarity in customer communication and support.
  3. Government support. Aside from the two reasons cited above, a highly appealing factor of the Philippines to foreign investors is its strong government support to the industry. This means competitive advantages are offered in the form of generous investor incentives and tax holidays, which have been put in place since 2002. In order to cultivate the industry further, vocational training schools are provided with training grants and an expansion on technological training support to better improve business deliver solutions. Another highly important legislature is the Data Privacy Act, which requires Philippines businesses to adhere to international data privacy regulations, which ensure strict confidentiality of sensitive information for your business, including customers.

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