Outsourcing to the Philippines
In a world that’s ever-changing and fast-paced, it can be difficult to keep up with the competition. This is especially true for businesses. In order to stay afloat, many companies have turned to outsourcing as a way to cut costs. This blog article explains what benefits you can expect when outsourcing to the Philippines, as well as some key factors companies should consider before taking the leap.
What is Outsourcing?
Outsourcing is the process of hiring a company or an individual to complete a task or project that is typically performed by in-house staff. In many cases, businesses outsource tasks or projects in order to save money. As defined by Corporate Finance Institute, Outsourcing is a strategic decision by a company to reduce costs and increase efficiency by hiring another individual or company to perform tasks, provide services, or handle operations that were previously done by employees within the company.
The Philippines has become one of the most popular destinations for outsourcing. This is due to the fact that there are many qualified individuals in the country who are willing to work for lower wages than what businesses would typically pay in developed countries.
Why Outsource to the Philippines?
One of the most popular places to outsource is the Philippines. The country has a large English-speaking population, making communication easy.
According to Outsource Accelerator, “Outsourcing opportunities in the Philippines are not limited to multi-billion-dollar companies. Small businesses also stand to benefit from the country’s attractive outsourcing climate, as is demonstrated by Human Proof Designs’ success story.”
Benefits of Outsourcing to the Philippines
If you’re looking for reasons to outsource to the Philippines, here are some of the benefits that you can expect:
1. Cost saving – One of the main reasons why companies outsource is because it’s a more cost-effective solution than hiring in-house staff. This means that talented, highly educated workers cost a fraction of what they would cost in other countries. When you outsource to the Philippines, you can expect to save on labor costs as well as other overhead expenses.
2. English proficiency – The Philippines is home to a large pool of talented and skilled workers. English is one of the official languages spoken there and this can make communication between businesses and their outsourced employees much easier.
Another language that can be catered in the Philippines is Mandarin. Chinese BPO services are also becoming more popular in the industry. With a high population of filipino-chinese in the country, no wonder that the Philippines is ranked 8th as a Chinese speaking country as per worlddata.
3. Flexibility – When you outsource, you have the option to scale up or down your operations as needed. This flexibility can be helpful when your business is experiencing growth or during slower periods.
4. Increased competitiveness – In today’s global market, it’s important to be able to compete with other companies from around the world. Outsourcing can give you a competitive edge by providing access to lower-cost resources and increasing your company’s agility.
5. Legal liabilities and exemptions – The Philippine government is also very supportive of businesses that outsourced their operations to the country. They offer incentives and tax breaks that make it more attractive for businesses to set up shop in the Philippines. Hiring overseas workers through a Philippine outsourcing provider allows you to minimize your exposure, streamline administrative procedures, and reduce any cost and liability exposure, all of which are wonderful benefits.
Philippines, an ideal location to outsource
The Philippines has a large population of English speakers, making it easy to communicate with your employees. The cost of living in the Philippines is lower than in many developed countries, so you can save money on your overhead costs. This makes it an attractive option for businesses looking to save on labor costs. Additionally, Filipinos have a reputation for being hardworking and reliable, meaning that businesses can expect high-quality work from them. Finally, the Filipino culture is known for its warmth and hospitality, which makes it easy for businesses to build good relationships with their Filipino employees. That is why Customer Support and Back Office Support are mostly outsourced to the Philippines. If you’re looking for a country to outsource your business needs, the Philippines is a great option to consider.