Outsourcing in the Philippines
Over the years, outsourcing in the Philippines has been widely recognized as a world leader and a global outsourcing powerhouse due to its continuous growth in the outsourcing industry. When the Philippines ventured into IT-BPO (Information Technology and Business Process Outsourcing) way back in the 1990s, the Philippine government started to implement policies to attract foreign companies. From then on, the outsourcing industry is rapidly expanding, and the number of foreign businesses is increasing year over year.
Doing business in the Philippines is not only affordable compared to other countries, but it also represents a range of additional benefits that make it an incredibly attractive option for outsourcing. Apart from the competitive labour rates and favourable economic environment, the country’s lower costs can be attributed to factors such as lower operational expenses, reduced taxes, and government incentives. Thus, the Philippines leads the world in voice-related services and holds a 13% market share in the worldwide BPO industry. These prove how beneficial outsourcing is to the country.
24/7 Operations
Full availability of operations is one factor to consider when it comes to outsourcing since the partnered businesses are mostly foreign with different time zones. The time difference between two countries may affect the operations of both parties; thus, Philippine outsourcing companies provide or offer 24/7 availability to serve customers better and resolve issues on time.
High Quality Education
The Philippines is known for its high-quality education system, which is renowned for its close alignment with western standards. Given the natural skills and English- proficiency of its workforce, the Philippines has established itself as a leading provider of outsourcing services. As a result, businesses are confidently relying on the Philippines as a strategic partner in delivering exceptional customer experiences and driving operational efficiency in outsourcing.
Diverse talents
There is a vast pool of talent worldwide, and most of it is in the Philippines. Filipino professionals who possess the necessary knowledge and excel in their skills meet the evolving demands of the global marketplace. The country’s diverse population and highly trained and skilled workers make it ideal for companies to undergo their business operations.
Long term support from Philippine Government
Due to outsourcing playing a significant role in the country’s growing success in the economy, the national government gives its support by implementing laws that make the lives of outsourcing companies and Filipino workers easier and better. Some of the laws are:
- Republic Act No. 11165 or known as Telecommuting Act
- Republic Act 10844 (The Department of Information and communications technology Act of 2015)
- Republic Act 10173 (The Data Privacy Act of 2012)
- Republic Act No. 7916 (Special Economic Zone Act)
Proven success of outsouring in the Philippines
Today, Philippines has over hundreds of outsourcing companies nationwide and constantly evolves through time. The IBPAP (IT and Business Process Association of the Philippines) expects that the market share will reach $35.9 billion in revenue in 2023 from 1.57 million in 2022 reflecting an increase. Additionally, outsourcing companies here in the Philippines also shift to a high-value services such as customer service, analytics and insights, and digital marketing, being able to provide more value and increase revenue to their clients. According to Unitycommunications, the sectors that will become the primary sources of BPO investments in the Southeast Asia countries are: Contact and call center, healthcare, Internet service, IT assistance, cybersecurity, financial technology and shared service. This make the Philippines as reliable and cost effective solution for foreign partners. Moreover, given to its continued expansion, the Philippine outsourcing industry looks promising, making it the perfect outsourcing destination.
