Small businesses, medium-sized companies, and large enterprises continue to benefit from outsourcing. This strategy allows organizations to focus on core business functions. At the same time, it helps them save on costs related to back-office operations, customer service, and data processing.
Outsourcing companies in the Philippines continue to improve their processes. They want to ensure businesses will maximize profit and revenue from this business strategy. As a result, the country has maintained its position as one of the best outsourcing destinations in the world.
In fact, Business Process Outsourcing (BPO) remains one of the top drivers of economic growth in the country. The sector is projected to grow by 9% every year. By 2018, it will outpace revenues from OFW remittances.
According to the roadmap of the IT-Business Processing Association of the Philippines (IT-BPAP), the total revenue of the BPO sector will reach $40 billion in 2022. It’s also forecasted to generate 7.6 million jobs. The sector is expected to take up 15% of the global BPO industry.
The BPO industry in the country is increasingly competitive. Given this, outsourcing companies are continuously looking for ways to innovate and improve processes. Whether it’s customer service outsourcing, creative services, or administrative processes, you can be sure your offshoring endeavor will be fruitful.
Cost-Effectiveness
Cost is the top reason businesses outsource part of their operations to the Philippines. Labor, for instance, costs only a fraction of what it normally does in western countries.
The cost of living is low. This trickles down to lower prices of goods and services, including office space rentals, infrastructure, recruitment, taxes, and legal services.
In fact, you don’t even need to worry about these costs. The BPO company will provide them for your offshore office. Outsourcing to the Philippines will allow you to save at least 60% on business costs and expenses.
Business Flexibility
Many businesses have fluctuating demands. Outsourcing enables companies to meet these demands as they occur. When you outsource to the Philippines, you’re freeing up resources for other business needs. You also get to save on costs.
More importantly, outsourcing and offshoring part of your business functions to the Philippines allows your company to expand its operations and reach new markets. When the need arises, you can efficiently scale down while your company re-evaluates business strategies.
Competitive Technology
When it comes to technological advancements, the Philippines is not far behind. Both the public and private sectors continuously push to attain the latest technology. This includes advancements in telecommunications, IT infrastructure, data security, and internet connectivity.
Hardware, software, and infrastructure available in developed countries are also available in the Philippines. So, no matter what technology you need for your business, it’s available in the country.
Even government regulations are aligned with the increasing demand for data security. The country’s Data Privacy Act of 2012 is on par with international industry standards.
Large Talent Pool And Highly Skilled Workforce
As of July 2017, the number of Filipinos in the workforce was reported at 42.5 million. The labor force participation rate was 60.6%. This means that there are 6 out of 10 Filipinos who can work for your company.
The Philippine population also has a median age of 23 years old. You have access to young professionals who have grown up with technology. They are also adaptable to any work environment.
More importantly, Filipinos place a premium on college education. The literacy rate in the Philippines is at 95%. In fact, the country churns out an average of 500,000 college graduates every year. In 2016, the number even rose to 700,000.
The government recognizes the BPO industry’s significant contribution to the country’s GDP. Because of this, the Department of Education has implemented strategies to produce more graduates. These graduates are specifically trained and skilled in BPO jobs like customer service, data processing, and IT.
English Proficiency
One of the best things about outsourcing is that your offshore leased staff in the Philippines are highly proficient and fluent in English.
English is the formal business language and the official language of instruction. The Philippines has the 3rd highest English proficiency score in Asia. Out of 80 countries around the world, the country ranks 15th in terms of English proficiency.
Tax Benefits
Government agencies such as the Bureau of Investments (BOI) and Philippine Economic Zone Authority (PEZA) are encouraging foreign investors to offshore their business functions in the country.
To make the country more attractive to foreign investors, these sectors have passed tax incentives and exemptions. These incentives include 50% tax deductions, income tax holidays, exemption from import duties, permanent resident status for investors, and more.
Reduced Legal Liability
When you partner up with an outsourcing company in the Philippines, you’re transferring legal liabilities to them. The BPO company is legally responsible for the company and its employees in the Philippines. This means your business is not.
Sharpened Focus On Core Business Function
Outsourcing to the Philippines will allow you to focus on developing and growing your business. You won’t have to worry about countless administrative tasks, data processing services, and customer service or support.
It increases your profit and revenue phenomenally. You don’t have to deal with issues in the office or operational problems that don’t contribute to your overall goals and objectives.
Better Work-Life Balance For In-House Employees
Work-life balance is crucial for the mental health and well-being of your employees. When your key employees are stressed or overworked, they become less productive. Their quality of work will also decline. This is detrimental to the success of your company.
When you outsource business operations to the Philippines, your outsourcing provider will make sure your key team members and stakeholders only need to focus on their core responsibilities. This will afford them the luxury of time and allow them to have a better work-life balance.
Bottom Line
Outsourcing companies in the Philippines offer businesses all over the world the opportunity to expand their business. They can widen their reach and grow their organization exponentially.
Choose an outsourcing destination that will allow you to seamlessly collaborate with your offshore team. This will help you more efficiently reach your bottom line.