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5 Reasons to Outsource to the Philippines: A Guide for Business Owners

Posted on:
January 23, 2019
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10
min read
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Table of Contents
1
What are the benefits of outsourcing to developing countries?
2
What are the challenges of outsourcing to developing countries?
3
Top 5 Most In-demand Developing Countries for Outsourcing
4
What are some successful examples of companies that have outsourced to developing countries?
5
What are the best practices for outsourcing to developing countries?
Top 5 Best Reasons to Outsource to the Philippines
KDCI Outsourcing
September 6, 2023

Lauded as one of the top business process outsourcing (BPO) and call center capitals of the world, the Philippines is an outsourcing paradise for many businesses globally— especially developed countries. 

Its long-standing reputation as one of the best countries for outsourcing shows that the Philippines has a lot to offer to companies looking to expand their operations and scale their growth.

Need more convincing? We listed 10 reasons to outsource to the Philippines, from higher profitability to world-class data security. 

10 Reasons to Outsource to the Philippines

Here are the top 10 reasons why you should pick the Philippines as your offshore outsourcing destination for your next outsourcing initiative.

1. Higher Profit Margin and Cost Savings 

Lower costs mean higher profit margins. Outsourcing to developing countries like the Philippines means lower labor costs, lower overhead, and lower taxes. All of these things translate to you being able to get the most value for your money, so you can run your business with higher profit margins while saving more on labor and overhead.

2. Highly Scalable

With Filipinos earning an average of  $325.15 USD a month,  scaling your business becomes a more cost-efficient endeavor, allowing you to double or downsize your Filipino workforce as needed without exceeding your budget or overspending on local hires. 

3. Large Talent Pool

The Philippines, with its 7,641 islands, is home to a large talent pool of skilled professionals who are passionate and highly motivated to excel in multiple fields. Because it has 13,128,017 college graduates as per the Philippine Statistics Authority’s (PSA) data, there is no shortage of talent and expertise in the Philippines. 

Hence, the Filipino workforce is a great resource to tap into when you need exceptional talent for your company.

4. High Literacy and English Proficiency

Apart from the Philippines’ 90% basic literacy rate, it is also recognized as one of the countries with the most number of English speakers at 111,046,913. In the ASEAN (Association of Southeast Asian Nations) region, the Philippines is one of the top countries with the highest English proficiency score of 570, second only to Singapore.

Thanks to the Philippines’ highly literate, English-proficient population, you won’t have to worry about language barriers in business communication — thus guaranteeing seamless collaboration and workflow processes.

5. Cultural Compatibility With Western Countries

The Philippines has a long colonial history, shaping its norms and values into a melting pot of  Asian and Western cultures. Due to the country’s past, Filipinos can easily adapt to any culture and work with foreign businesses — especially those from the US — with minimal cultural or communication barriers.

6. Skilled Workforce

Filipinos are detail-oriented, hardworking, and reliable workers who are dedicated to helping companies reach their goals. They are also hospitable, friendly, and humble, making them some of the best people to work with. 

This combination of having an excellent work ethic as well as a great disposition makes Filipino professionals dependable and trustworthy offshore employees for foreign businesses.

7. Customer-Centricity

The hospitality of Filipinos extends to business relationships, too. In many outsourcing companies, Filipino employees prioritize customer satisfaction, making sure their clients consistently receive the highest quality of service. This leads to strong partnerships that last for decades.

8. Government Support 

The Philippine government recognizes the major economic role of the BPO industry, which provides jobs to 1.57 million people in the country. The Philippines’ outsourcing sector has multiple measures in place, such as tax adjustments and infrastructure development, to fully support its growth and development.

The local outsourcing industry also works closely with different organizations and other outsourcing companies to provide BPO courses to Filipinos, hence preparing a specialized workforce primed for the Philippine BPO industry.

9. Time Zone Advantage

BPO companies in the Philippines are open 24/7 and on local holidays. This means you have Filipino employees working morning, afternoon, and night shifts to provide round-the-clock coverage for clients from different countries — particularly the US, where time zones vary between 12 to 18 hours.

10. Excellent Data Privacy and Security

From financial to healthcare data, Philippine outsourcing companies have processed and handled them all with care. The secret? Strict enforcement of the Data Privacy Act and robust, enterprise-grade IT infrastructure. 

Not only that, but these companies also make their employees sign non-disclosure agreements (NDA)  to ensure confidentiality and protection from legal liabilities. Hence, by outsourcing to the Philippines, you get the confidence and peace of mind that your data is protected from breaches and cyberattacks. 

4 Tips On Outsourcing to the Philippines

To successfully outsource work to the Philippines, be sure to follow our expert-approved tips below:

Tip #1: Know Your Whys

Outsourcing is not something you jump right into immediately. Before outsourcing operations to the Philippines, sit down with your team and assess the organization’s weaknesses and inefficiencies. 

Is it the lack of specialized expertise or advanced technologies? Are your team members spending their time working on non-core tasks?

Whatever the reason, understanding your whys helps you outsource with purpose. 

Tip #2: Don’t Always Settle for the Cheapest Provider

Evaluate potential outsourcing partners not just on cost, but also on their reputation, expertise, services, and core values. By vetting service providers, you can work with an outsourcing partner that aligns with your goals, values, and standards — thus reducing the likelihood of conflicts of interest and unmet expectations.

Tip #3: Ask for A Trial Period

Many of the best BPO companies are happy to give a trial period. During this period, you can assess your offshore team’s performance and identify weaknesses to help you weigh in on whether the outsourcing provider is worth committing to for the long haul. 

Tip #4: Familiarize Yourself With Filipino Culture

By researching Filipino history, norms, and values, you can smooth out differences in hierarchy, levels of formality, and communication styles. This builds mutual respect between teams, thus leading to a partnership grounded in cultural sensitivity.

Outsource to the Philippines With KDCI Outsourcing

The Philippines truly brings a lot of value to the table. Outsourcing to the Philippines isn’t a gamble, and it could very well be the next best step for your business. 

KDCI Outsourcing is an outsourcing company providing e-commerce, creative production, web development, and back-office support. For more than 15 years, we have been helping clients achieve business growth and success with our custom-made offshore teams and top-notch outsourcing solutions.

Choose KDCI Outsourcing

Looking for a company that provides business outsourcing solutions that truly work? KDCI is the outsourcing provider for you!

Let’s help your business meet its goals. Contact us today to get started!

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