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Why Outsourcing to the Philippines is a Smart Business Decision

Why Outsourcing to the Philippines is a Smart Business Decision

Advancing as a business has become all the more competitive with the rise of globalization and the internet. This has prompted top business owners to hire workers from across the world to tap a wider pool of talent and save on operational costs.

The Philippines is one of the foremost countries for your outsourcing needs. Faced with a motivated and competent workforce, you will find cost-effective and efficient ways to grow your business. Read on for a plethora of reasons

Why outsourcing is the best in the Philippines.

Filipino Outsourcing: A Long and Continuous Business Relationship

Western countries have been outsourcing work to Filipinos for decades; however, this phenomenon was first notably observed during the 1970s. American businesses observed the high English proficiency in the Southeast Asian country and hired Filipinos for data entry jobs.

In the 1990s, outsourcing to the Philippines reached its peak as the country became the top choice in Southeast Asia. Foreign companies were inclined to do business in the country because of their cost savings. Since Filipinos’ cost of living is lower compared to that of Western countries, companies could spend less while still providing Filipinos with a higher standard of living.

By the 2000s, the Philippines has become an established location for outsourced workers as customer service operations and IT industry giants have taken their business to the archipelago.

Advantages of Outsourcing to the Philippines

Outsourcing is a business practice that is cost-effective, convenient, and flexible. Here are the reasons the Philippines is the outsourcing destination for you:

Increased Cost Savings

Labor costs in the country are substantially lower than that in Western countries. You will not only get to save on the hourly rate but your operational costs will be reduced if you plan to work remotely. No office to pay for or computers to buy — outsourcing can save you more than a hundred dollars. Additionally, if you choose to hire independent contractors, you will not need to provide benefits, which can add to any business’s costs.

Welcoming Government

The IT Business Processing Association of the Philippines (IBPAP) provides a strong support system for foreign business owners in the country. Furthermore, in the mid-90s, the Philippines Congress passed the Special Economic Zone Act which incentivized foreign investors to bring their business to the country. With reduced taxes and looser area requirements for developments, foreign businesses flocked to the country. The Philippines is thus one of the ideal places for Western companies to hire workers.

Existing Infrastructure

The Philippine government went beyond lowering taxes for foreign investors but also encouraged a strong technological infrastructure in the country which has seen developed internet connections and mobile phone networks. These factors allow remote workers in the country to have access to the proper tools to work efficiently from the comfort of their homes.

Strong Cultural Connection

The Philippines already has a history of working with the United States, fostering a reliable connection between the two countries. Aside from this, Filipinos are exposed to American media from a young age through television and social media. This familiarity with American culture allows them to better understand Western values and communication.

Filipino Culture: The Perfect Fit for Outsourcing

Filipino culture is increasingly compatible with the needs of Western companies that need outsourced workers. This is evident in the country’s use of the English language but also in their skills, work ethic, and technology skills.

Mastery of the English Language

Any foreigner visiting the Philippines will find comfort in the fact that nearly everyone is proficient in English communication. This is because the Philippine education system teaches children to write and speak in English as early as elementary. Filipinos’ mastery of English is a plus for outsourcing. Business owners get to do away with the language barriers of working with someone from another country.

Competent Labor Force

Graduating college is one of the minimum requirements to land a job in the Philippines. This encourages numerous Filipinos to develop skills specific to their field. Filipino outsourced workers are thus often equipped with specialized knowledge in business, communication, and any other major that they studied in their collegiate years. Filipinos also take pride in their work and strive to develop their professional skills. You can rely on the fact that they will do what it takes to get the job done.

Technology Skills

Another area of knowledge which Filipino culture cultivates is skills in using technology. Filipinos are tech-savvy because they have been trained to use the computer and foster their problem-solving skills. Furthermore, their resilient outlook helps Filipinos learn new applications easily.

Hospitable and Polite Nature

The number one trait that tourists associate with Filipinos is their hospitality. This is evident in Filipino workers’ helpful and polite attitudes — the kind of attitude best commonly outsourced work such as customer service. Consequently, Filipinos are often the top pick for these types of jobs.

Strong Work Ethic

Filipinos are known for being industrious and dedicated to their work. Western businesses value their emphasis on completing tasks with accuracy and quality work. This motivates numerous foreign companies to hire competent workers in the country.

Frequently Asked Questions

How does outsourcing improve the effectiveness of business?

Outsourcing as a business strategy does more than save you money. It also allows you the flexibility of hiring the kind of workers you need while you can focus on the core components of your business.

What is an example of outsourcing in the Philippines?

Western countries often hire Filipinos for IT services, marketing services, customer service, accounting, data entry, and more.

The Bottomline

Outsourcing to the Philippines is the key to a reliable workforce. Filipinos are hard-working, skilled, and proficient in English — factors that have been tried and tested over the long working relationship between American companies and Filipino workers from the 1970s to the present. All of these reasons make the Philippines the leading outsourcing hub in the globe.

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