Outsourcing to the Philippines Why it Works

Outsourcing to the Philippines: Why it Works

Despite a debilitating pandemic, the numerous community lockdowns that prevented mobility for many people, and other economic challenges, the Business Process Outsourcing (BPO) industry, or what Filipinos call the “call center” business, remained to be one of the most resilient business sectors in the country.

Time and again, the country has proven itself to be the perfect hub for those who wish to engage in outsourcing to the Philippines, as there are many outsourcing providers in the Philippines who are ready, willing, and able to provide unparalleled outsourcing services to clients, according to Ralf Ellspermann, Chief Executive Officer of PITON-Global, a leading, mid-sized contact center in the Philippines.

Many have already predicted a rosy future for the Philippine outsourcing industry, where it is seen to corner about 20 percent of the entire global market that spews over U$50 billion in revenue! Let us count the ways:

Cost-efficiency –

as with any other business, cost and how to manage it oftentimes drive the success of any business endeavor. The less cost a business operates without sacrificing the quality of work will always be an ideal scenario. Outsourcing in the Philippines has remained a top option for companies around the world not only because of the country’s strategic location geographically but because the cost of labor is practically half compared to the so-called First World countries such as the United States or the United Kingdom. Yet, quality performance and work output remain at a high level.

Talent abundance –

with the kind of education system closely resembling that of the Western education system, there will never be a shortage of talent in the Philippine talent pool. An estimated 500,000 students graduate from both public and privately-owned colleges and universities annually. That’s a large talent pool that companies can dip their hands into to get the best possible talent, all skilled and ready to jump into work in one of the most vibrant and progressive industries in this part of the planet.

Zero language barrier –

When in the Philippines, a visitor can go to any street corner, parking lot, or any of the huge number of malls in the country, and one won’t find anyone who can’t speak English. When it comes to speaking in English, Filipinos can speak it, no matter how broken it may be, and their accent is naturally neutral. However, for a majority, their English-speaking skills range from average to impeccable, and that alone is already an advantage. The Philippines is not a former US colony for nothing if Filipinos can’t speak it when conversing with an English-speaking foreigner who steps into the country for the first time.

Western culture affiliation –

familiarity with Western culture is definitely an advantage when it comes to business process outsourcing to the Philippines. The country’s affinity to Western culture, being a former colony of the US. That exposure to the Western mindset capably armed Filipinos with enough firepower to deal with countries in the Western world, for they know not just how to speak the language but also how to integrate culturally for better communication and understanding. This makes the Philippines entrenched at the top of the heap when it comes to companies looking for viable outsourcing destinations.

There are, of course, other distinct advantages that can help companies make that all-important outsourcing decision to choose the Philippines, particularly less legal headaches coming from an irate employee. Outsourcing companies operating in the country are very strong legally, with an able human resource and management team to take care of any possible legal issues so clients can concentrate on their business. Data privacy, on the other hand, is something that the Philippine government is steadfast in doing to help promote the sanctity of sensitive data. The Philippines’ Data Privacy Act of 2012 helps ensure that data is protected using internationally accepted standards to ensure clients’ peace of mind with regard to their confidential business data and continues to implement and update data privacy protection measures to protect clients’ delicate business information.

With an outstanding outsourcing destination such as the Philippines, companies can never go wrong with their choice.

John Norwood
John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.