In 1992, a BPO contact center was established in the Philippines. The Philippine government has launched a new generation of outsourced enterprises within an enabling zone for special economic zones. Almost 200 outsourcing firms have set up operations throughout the country and now employ approximately 1.4 million people.

Since then, the outsourcing industry has grown drastically. Many businesses have started outsourcing their services to the country because Philippine labor is highly-skilled, English-speaking, and affordable.

There are several reasons why outsourcing to the Philippines makes sense for businesses worldwide.

Let us define first some terminologies in this article. What is outsourcing? Outsourcing refers to the process of task delegation where companies hire dedicated developers from third-party contractors.

Why outsource to the Philippines

Nine reasons why outsourcing in the Philippines is growing

  1. Highly-skilled, English-speaking labor force. The Philippines has one of the largest and most talented workforces globally, with many workers possessing advanced skills in customer service, IT support, and other specialized areas. Moreover, the Philippines' business process outsourcing (BPO) industry is bolstered by the call center industry.
  2. Low labor costs. The cost of living and doing business in the Philippines has significant cost savings than most developed countries. This makes it possible for companies to save on operational costs by outsourcing their services to the Philippines. You might be worried about the quality. But, the companies in the Philippines have a culture of high quality and efficiency, making it possible for them to deliver excellent service despite their low cost.
  3. Access to a global customer base. As the leading provider in the BPO sector, Filipino workers have made it possible for businesses to reach their business goals, improving their brand reputation and increasing revenue. The large pool of highly-skilled workers and low labor costs make it easy for companies to target customers worldwide.
  4. Support for IT service needs. The Philippines has become a key destination for many IT and software companies looking to outsource. In recent years, the country’s BPO sector has grown with government support initiatives, such as creating a BPO curriculum, health insurance for workers in the BPO industry, and creating laws to reduce legal liabilities.
  5. Proximity to other Asian countries. The Philippines is strategically located near other Asian countries, which makes it easy for companies to expand their offshore operations in the region. Additionally, the country offers a time-zone advantage for foreign companies looking to target customers in the US and Europe.
  6. Favorable government policies. The Philippine government has supported the Business Process Outsourcing (BPO) industry. For example, the government has created special economic zones (SEZs) that offer tax holidays (even tax returns) and other incentives for workers in the Philippines BPO.
  7. Highly-developed infrastructure. The Philippines has well-developed telecommunications and transportation infrastructure, making it easy for an offshore team to set up operations. Additionally, the country has many educated workers, which benefits business growth and business continuity.
  8. Software developers in the Philippines are highly sought-after by businesses worldwide. Most clients prefer Philippine-based developers because of their flexibility and ability to work under pressure.
  9. As mentioned, Philippine-based developers are excellent English speakers. The country's official language is Filipino, but English is considered a second language. The majority of Filipinos can casually speak English; therefore, it is easy for Filipino developers to communicate with clients from various countries.

What services can the outsourcing industry in the Philippines give you?

Here are some of the IT-related projects you can get when you start outsourcing to the Philippines.

  1. Software development projects. These projects involve creating and maintaining software applications. The scope of work can include anything from developing a custom software application to modifying an existing one.
  2. Web development projects. These projects involve creating and maintaining websites from an offshore workforce or remote staff. The scope of work can include anything from designing and coding a website to managing its content.
  3. E-commerce development projects. These projects involve setting up and managing clients' e-commerce websites. The scope of work can include anything from designing and coding a website to managing its content and product catalog.
  4. Mobile app development projects. These projects involve creating and maintaining mobile applications. The scope of work can include anything from developing a custom mobile app to modifying an existing one.
  5. QA and testing projects. These projects involve ensuring the quality of software applications and websites. The scope of work can include anything from manual testing to automated testing.
  6. Content creation. This can involve writing blog posts and articles to creating social media content.
  7. Digital marketing. This can involve anything from SEO and web marketing to social media marketing.

Outsourcing to the Philippines will give you time to explore the variety of work you can get from your outsourcing destination.

How to leverage business process outsourcing for your benefit?

  1. Create specific instructions for your outsourced team or offshore staff. This can include outlining each project's objectives, requirements, and processes. Ensuring clear and concise instructions will help you get the most out of an offshore team.
  2. Invest in training programs for your outsourcing staff. Training your employees is an essential part of building a solid remote workforce. It can include anything from onboarding programs to technical training.
  3. Develop a system for monitoring and tracking progress for your BPO partner. This will help you stay on top of each project and ensure that deadlines are met. It can include setting up alerts to creating daily or weekly reports.

As a business owner, you have the right to take full control of the whole project to supply your business needs. You can prevent management issues when the task allocation is perfectly done.

Outsourcing companies often enjoy working with clients who can handle feedback graciously. If you select a team in the Philippines (offshore outsourcing) to perform non-core business functions of the company, you may expect positive returns.

The BPO Industry and feedback

Feedbacks are essential to BPO companies. It helps them assess the quality of their services and act on areas that need improvement.

Philippines-based companies take feedback seriously and use it to improve their service quality. They understand that feedback is essential in maintaining a good relationship with their clients.

You will be spared from unnecessary HR costs when you outsource, which you may pay for your local talent or in-house staff.

The outsourcing destination has set up business solutions that will benefit all parties involved most of the time. You may also set up a management team if you have a massive project that requires supervision.

Indeed, offshore outsourcing is a tedious task, but the benefits are incredible.

Support of the government of the Philippines

Laws have been passed to capacitate their workers in the BPO industry to create BPO specific curriculum for institutions. Small businesses, either abroad or local, have reduced legal liabilities to assist them in becoming excellent in the field.

Moreover, the government funds technology advancement in the Philippines to help businesses, including BPOs, state-of-the-art access equipment.

The Philippines also provides incentives to BPO companies to put up their business in the country. These can be in the form of tax holidays, reduced rental rates, and easier permit processing.

The wrap-up

Philippines-based companies can provide efficient and quality services to augment your company's needs. With the government's support, you can leverage offshoring to achieve more growth in no time.