The Philippines: A leader in the outsourcing industry

The Philippines continues to rise in the outsourcing ladder in the Asia Pacific. When it comes to outsourcing or offshore outsourcing, India is the go-to country for many businesses. However, several recent reports suggest the Philippines as an outsourcing powerhouse in the region. The country’s BPO industry is still on an upward trajectory just like it was in 2016. In 2020, the industry’s projected income range is 40 to 50 billion US dollars. Outsourcing in the country also includes senior roles like web development, engineering, equity research and so much more.

There are several reasons why the Philippines is one of the best outsourcing or offshoring destination not only in the Asia Pacific but across the entire globe.

Strong English verbal skills and comprehension

One of the biggest concerns in outsourcing is the English-language skills of employees. This is referred to as the communication barrier that may result in poor customer support and efficiency. The English-language in the Philippines is thought to students as early as pre-school for both private and public schools. English is also a primary language for the country’s media (print, broadcast and online, entertainment, government, etc.) English proficiency is observed among entry-level employees. The Philippine workforce is also quick when it comes to learning and using different slangs used in other countries.

Cost-effective outsourcing destination

Outsourcing should be cost-effective, not cheap, there is a difference. Most outsourcing employers and clients in the country are from Australia and the US. The average salary in Australia for entry-level employees is over $40,000 USD and $42,000 USD in the US. While in the Philippines, entry-level is more than $5,300 USD, supervisory at $6,700 USD and managerial at $13,000 USD. Salary reduction is not the only advantage in the Philippines, internet services, office space, computers and other necessary resources are also more affordable. Businesses and companies all over the globe are taking advantage of these cost differentials without sacrificing the quality of their business. That is why it is important to establish that outsourcing in the Philippines is not cheap, it’s cost-effective. In the Philippines, you can hire three senior-level accountants for the price of one.

Competitive and cultural talent

Adaptability, resiliency and culture diversity are just some of the known traits of the Filipino/Filipina workforce. The Philippines may not be one of the most advanced countries in the globe, but the employees are able to cope with new trends and changes in technology. Workers in the country are also competing on a global scale against top countries in several industries like services, animation, web development and more. Pinoys and Pinays can resolve adversities in and out of the office with critical and strategic problem-solving skills. They are also able to work harmoniously alongside other nationalities despite the difference in culture and background. This is possible with their respectful approach towards cultural diversity.

Efficient recruitment and HR conditions

Outsourcing relies highly on an extensive and strategic recruitment process. The screening and assessment stages for potential candidates are thorough. HR and management personnel always see to it that employees can hit the ground running on their first day. With the help of modern technology and recruitment tools, sourcing the best talents is easier.

Something to look forward too

Every year, there are over 500,000 graduates in the Philippines. That means half-a-million top-notch jobseekers are on a mission to become world-class employees. The BPO industry is also adapting to the higher demands of the KPO or Knowledge Process Outsourcing. The Philippines is also on the path of IT-outsourcing overdrive in order to cope with the increased demand for IT-outsourcing solutions and professionals.