The success of the outsourcing industry in the Philippines can be attributed to the many advantages the country offers to investors. A balance needs to be struck for outsourcing to be considered a worthy investment, and it is a widely acknowledged fact that this is where the Philippines shines the most. Those who outsource to the Philippines have found that they get the best of both worlds by investing in the country: (cost savings and impeccable service.)
Here are four reasons that contribute to the country’s continued success.
1. Government Support
Policy makers in the past and present recognize the BPO industry’s significant contribution to the country’s growth and have implemented several laws to support it. Huge investments are being made in emerging cities, an increase in tax incentives has been rolled out and several BPO industries were established.
2. Cheap Labor and Overhead Cost
Labor costs is significantly less expensive in the Philippines, where the salaries of call center agents are typically about 20% of what someone who works in the US or other workers in developed countries would take home. The tax breaks implemented by the government and less expensive infrastructure further contribute to more savings for those who choose to outsource parts of their businesses in the Philippines. This lower labor cost does not only relate to administrative jobs but highly specialized jobs as well, such as inbound sales, telemarketing, graphic design, strategic management and more. This cost advantage not only applies to salary but to other business expenses as well as office spaces, utilities, and supplies.
3. Excellent Communication Skills
Around seventy percent of Filipinos are fluent in English. Most local children learn the language even before they start going to school. Their English proficiency is further reinforced once they start getting a formal education. English is the medium of instruction used in schools in the Philippines and is the primary language for local commerce. The fact that Filipinos are excellent communicators both orally and in writing, it is one of the reasons why the Philippines rose to the top of the global call center industry.
4. Remarkable Work Ethics
Filipinos take pride for being one with the finest work ethics in the world. In a typical workplace, most of the Filipino workers are known to be friendly, hospitable, accommodating, and empathetic. This impeccable work ethics is why Filipinos are very suitable for jobs like customer service and outbound marketing which requires a lot of interaction and coordination.
Filipinos are naturally resilient and adaptable. Filipino staff can easily adjust to changing shifts, so they can work during the work hours in different time zones. They are also highly trainable, so they can keep up with new task and job specifications quickly and effectively.
Building an offshore team in the Philippines allows you to scale quickly and efficiently without any capital investment or infrastructure requirements. You can expand a team quickly and cost efficiently. Equally, you can shrink your team again, if you have seasonal work, or your business takes a turn for the worse. Generally, you can arrange agreements with outsourcing suppliers for low commitments and flexible terms.