Being self-employed as an entrepreneur may be challenging and strenuous since entrepreneurs have to balance lowering their expenditures while maintaining high standards.
Therefore, when running a business, you employ tactics that aim to achieve this equilibrium.
Some businesses search the world for highly competent, well-educated people who are also cheaper to hire. Outsourcing is known as this.
The extension of a company operation into a lower-cost economy to leverage cost savings is offshore.
The Philippines as the Leading Country for Business Process Outsourcing
Based on the 2010 IBM Global Locations Trend Report results, the Philippines has unseated India as the preferred country for BPO worldwide. For some time now, the Philippines has been regarded as one of the finest outsourcing destinations for businesses.
In 2020, the Philippine BPO market faced distinct and significant challenges. In addition to challenging the resilience of Philippine outsourcing firms, the global health crisis also changed the plans and predictions that were made to boost the country's BPO business.
Despite the pandemic's effect on the business process management industry, the Philippines' economy would still rely on it. Outsourcing is the economic lifeblood for the whole country of South-East Asia, including hundreds of diverse individuals from various ethnic backgrounds.
BPO businesses employ more than 2 million people in the Philippines, and they provide for the most significant boost to the Philippine economy, along with remittances of foreign currency.
As a result, the country has set out to look like a competitive global BPO contender globally, like India. Metro Manila's growth in numerous other sub-industries allows the call center sector to take over the country.
Why Would You Outsource in the Philippines?
1. Competitive Cost
One of the main benefits of outsourcing to the Philippines is the cost. The total cost of labor in the Philippines is around half that of the United States or the United Kingdom and other tertiary expenditures such as office space, legal and HR services, and current equipment. Without a doubt, businesses outsourcing to the Philippines may save between 60% and 70% in total expenditures.
2. Excellent Communication Skills/English Language Proficiency
While in India, people often communicate in Hindi, which is not an official language, the Philippines benefits from having English as an official language, as this is frequently used in conversations.
For two consecutive years, the Philippines has been among the top countries for Business English Index (BEI) performance with a score of 7.95, ranking just above Norway with 7.06, and the Netherlands with 7.03. The research from BEI is intended to estimate the worldwide level of workers' English competence in the workplace.
The BEI score ranges from 1.0 to 10.0, with 1.0 denoting capacity to communicate and read in simple English sentences and 10.0 meaning capacity to converse and read on an equal level with native English speakers. The Philippines is indisputably the world's leading outsourcing location.
As a result, the BPO sector is filled with fluent English employees and whose accents sound incredibly similar to that of the United States. Voice-based services such as contact centers and virtual staffing are best suited for a neutral accent and speech pattern like this.
3. Flexible
Virtual teams consist of highly skilled specialists who can do a range of administrative, data entry, research, help desk assistance, customer service, marketing, sales, and many more. With a diverse skill set, you may establish a team in the Philippines and go as far as you want.
4. Skilled and Top-Notch Employees
English is the Philippines' most widely spoken language, and outsourcing is the country's largest sector. Businesses that understand the labor market may employ a ready and eager workforce easily.
The Philippines has a relatively young population, with an average age of 23 years. This generation has grown up in a technologically advanced environment and possesses an intuitive grasp of how technology may create more effective business solutions. Many youths also have access to high-quality education that prepares them for careers in the BPO industry, easing their entry into the market with the necessary skill sets.
Each year, universities graduate thousands of talented, educated, and most importantly, passionate young blood employees. So it’s pretty simple: if you want to have access to willing and capable people for a fraction of the cost of comparable skill in your home country, it's just preferable to outsource in the Philippines.
5. Support from the Government
As one of the country’s economic pillars and main revenue generators, the Philippine Government recognizes the industry’s potential growth by providing vital support and infrastructure for BPOs. Some of the government and industry initiatives include:
- Partnerships with universities in the Philippines to create BPO-specific curricula to prepare the future BPO workforce
- A voucher system from the Technical Education and Skills Development Authority (TESDA) as funding support for call center training
- Tax and non-tax incentives to support foreign investment
- Creation of national Information and Communications Technology councils and more
6. Less Management Issues
You will have an experienced and competent HR and management staff that helps your team when you select the appropriate outsourcing provider. Although you still have the training and task assignment responsibility, you may avoid ensuring that your employees show up on time, deal with reporting on holidays and sick leave, tax rates, etc. All this is done for you so that you can concentrate on other business matters.
Also, when you create a team overseas, you are not liable for health insurance, benefits, taxes, and other costs that can take an arm and a leg from a company owner. The outsourcing partner fully covers the costs.
Takeaway
Outsourcing companies constantly seek methods to innovate and enhance operations.
You can ensure that your offshore effort is successful, whether outsourcing customer support, creative services, or administrative procedures when selecting an outsourcing location that allows you to work smoothly with your overseas staff to achieve your bottom line more effectively.
Outsourcing firms in the Philippines give organizations across the globe a chance to develop their operations, extend their reach and dramatically expand their organization.
