by inArticles onJanuary 23, 2017 0 comment

Why the Philippines Is the Best Destination to Outsource Your Business

Over the years, the Philippines has emerged to become one of the top outsourcing destinations in the world. Since 2004, the revenue and employment based on the Business Process Outsourcing (BPO) industry has expanded tenfold. The country capitalizes on the availability of high skilled work force, combined with cost advantages, economic stability and the expansion of government support, it’s quite clear how the industry was able to sustain a double digit growth for the past 10 years.

Source: CLSA Asia-Pasific markets, BSP, Business Processing Association of the Philippines (BPAP)

Big names choose the Philippines

Most of the major companies in Australia, UK and the US choose to outsource to the Philippines. Companies such as Jetstar, Hewlett Packard, Virgin, J.P. Morgan, Telstra etc. would definitely not settle for anything less than the best for their customers. The Filipino BPO companies have gained a proven track record of delivering superior service to their clients.

Reduced costs

One of the main advantages of outsourcing to the Philippines is the cost-effective rate of services. The cost differentiation between salaries, benefits, and operational overheads make it very appealing to most businesses. It is estimated that western companies can reach 75%-85% savings in salaries alone.


Availability of highly skilled workforce

In 2013, according to a GlobalEnglish study, the Philippines was announced the world’s no. 1 country in Business English among non-native English speakers. At 7.95 Business English Index (BEI), the Philippines has overtaken 77 countries all over the world including native English speaking countries such as UK, Australia and the US. The educational standard in the Philippines is comparatively high when compared with other developing countries, which makes it easier for businesses to get employees who have competitive skills in their respective fields. Aside from the familiarity of Filipinos with the western business practices, they are also known to take pride in their work and go the extra mile in order to exceed the level of service expected of them.


Availability of high end facilities and tools for Business Process Outsourcing

Technological advancements in the Philippines have enabled Business Process Outsourcing (BPO) companies to save a substantial amount of money, provide enhanced customer care, and give a higher return on investment. These technological advancements have increasingly boosted the spatial fragmentation of service production and goods, which drastically simplifies offshoring to operational units in foreign lands, and significantly improves the business sector. Taking these factors into consideration, it can be said that the availability of technological tools, low labor costs, a pool of well-educated as well as English-proficient workforce, and a vastly improved international telecommunication sector, make the Philippines the perfect location for establishing BPO operations.

Government support

The BPO industry has continuously provided a steady boost for the economy during the last decade. Such positive impact has not come unnoticed by the local government. Over these recent years, the government’s support for BPOs has been stronger than ever. It has set up special economic zones, established a Philippine Economic Zone Authority, and grants fiscal and non-fiscal incentives such as a 4-year or 8-year income tax holiday to BPO players. The Filipino government has also slowly integrated BPO specific training and courses to improve the competitive skills of Filipino workers, in order to make them suitable for the industry. It’s no wonder the Philippines has gained a new reputation as the preferred BPO destination, a source of highly skilled labor, and home to some of the warmest and friendliest people in Southeast Asia.