Knowledge Center Article

The Top 10 Drivers for Offshore Outsourcing to the Philippines

By Grace N / 12 August 2022

The Philippines has become a major player in the global outsourcing industry, with many companies choosing to outsource certain business functions to the country. Here are the top 10 drivers for offshore outsourcing to the Philippines:

  1. A Skilled and educated workforce: The Southeast Asian nation has a large pool of highly skilled and educated workers in fields such as IT, engineering, and finance, making it an attractive destination for companies looking to outsource technical or specialized work.
  2. Strong English proficiency: The nation has a high level of English proficiency, which makes it easier for Western companies to communicate with their outsourced teams.
  3. Lower labor costs: In general, wages are lower than in many developed countries, which allows companies to reduce their operating expenses by outsourcing to the Philippines.
  4. Stable political environment: The country has a stable political environment and is a relatively safe place to do business, which is an important consideration for companies outsourcing work.
  5. Strong infrastructure: The Philippines has a well-developed infrastructure, including reliable telecommunications and transportation systems, which makes it an attractive location for businesses looking to outsource.
  6. Cultural compatibility: The Asian BPO powerhouse has a culture that is more similar to Western countries than some other countries in the region, which can make it easier for Western companies to work with Filipino workers.
  7. Time zone advantages: The country shares the same time zone as many Asian countries, which can make it easier for companies to coordinate with their outsourced teams.
  8. Government support: The Philippine government has made efforts to support and promote the outsourcing industry, including through the development of special economic zones and tax incentives.
  9. Strong work ethic: Filipino workers are known for their strong work ethic and dedication to their jobs, which can lead to higher productivity and lower turnover rates.
  10. Access to a wider pool of talent: Outsourcing allows companies to access a larger pool of skilled workers, regardless of their location.

The Philippines offers a number of competitive advantages for companies considering offshore outsourcing, including a skilled and educated workforce, strong English proficiency, lower labor costs, and a stable political environment.

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Having spent over two decades partnering with and delivering Business Process Outsourcing (BPO) solutions to Fortune 500 clients, John possesses an in-depth understanding of this intricate process. His comprehensive approach incorporates an exhaustive assessment of outsourcing requirements, precise vendor sourcing, and a robust program management strategy.

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