The Philippines today is a prime destination for outsourcing services. More and more companies are choosing to bring their enterprises to the country’s shores for a good reason. A unique combination of factors positions the island nation as a premier haven for business process outsourcing.
1. Competitive costs
Labor costs in the Philippines are much lower than in developed countries. That fact alone is already an alluring draw to a lot of foreign investors. On top of that, commercial real estate, office setup expenditures, and maintenance costs are relatively cheaper as well.
2. English proficiency
The Philippines’ history as an American colony has significantly influenced its educational system. As such, Filipinos are generally proficient in written and verbal English. Their accent is also relatively neutral, especially when compared to other Asians. This makes Filipinos good conversationalists in the language and very desirable in call center tasks.
3. Cultural affinity
Due to its colonial past, the Philippines is comparatively more Westernized than its other Asian counterparts. With English as an official language in the country, the populace is generally more receptive and in tune with Western influences and media. Having this cultural affinity is a distinct advantage in outsourcing services. In a highly-competitive market, every little advantage counts.
4. Skilled labor
The Philippines’s educational system is robust and produces many highly-qualified professionals in a wide range of industries. The Filipino workforce is young, highly educated, and very competitive. Access to this pool of skilled labor is a major reason why many foreign companies outsource to the country.
5. Filipino characteristics
The Filipino worker is known worldwide for their hard work, diligence, and loyalty. This combination of characteristics makes them very productive and reliable members of a team.
6. Economic environment
The Philippine government has long been priming the country’s economy and infrastructure for call center operations and business process outsourcing. Current legislation greatly favors foreign investment and offers a lot of attractive incentives and exemptions. It’s no surprise that many companies have already offshored parts of their business to the country.