5 Reasons to Outsource to the Philippines

Business Process Outsourcing (BPO) has been a popular solution for companies that wish to grow while staying competitive. In the US alone, 66% of businesses outsource at least one department, with roughly 300,000 jobs being outsourced yearly. Among the most common processes that are outsourced include those in human resources, customer service, accounting, and other administrative tasks. While outsourcing is known to be practiced by large conglomerates, small businesses and even startups are also turning to outsourcing for scaling. The main reason for this is access to cheap labor, as outsourcing can reduce up to 90% of labor costs. 

One of the most popular countries for outsourcing is the Philippines where 9% of the country’s GDP is generated by the local BPO industry. If you’re considering outsourcing some of your business processes, here are five reasons why you should consider the Philippines for your needs.

1. English Proficiency

One of the main reasons why the western world, particularly North America, turns to the Philippines for Business Process Outsourcing is that English is one of the country’s official languages, next to the native Tagalog. In the 2021 English proficiency index, the Philippines ranked 2nd in Asia and 18th in the world. English is not only taught in schools as one of the subjects, rather, it is also the official medium of instruction. Furthermore, Filipinos can speak English with a neutral accent, with many Filipinos able to mimic the American accent very well. This level of English proficiency makes the Philippines a prime choice for call center operations.

2. Westernized Culture

the Philippines is a very westernized Asian country. Being a US territory from 1898 to 1946, much of American culture still remains ingrained in Filipino society. This understanding of western culture makes it easy, particularly for US companies to communicate and relate with Filipinos on both a professional and personal level. The western inclination of the Philippine culture also means that Filipinos can naturally grasp western contexts which are vital for roles that require strong cultural references and awareness such as those in marketing, sales, and advertising.

3. Cost Efficiency

 Statistical data that compared Filipino household incomes based on industry revealed that the average salary of BPO employees in the Philippines is roughly about $7,395 annually. This might seem very meager, but the cost of living in the Philippines is also very low. A typical Filipino family of three can live comfortably with less than $5,000 annually, which is why many aspire to work for Business Process Outsourcing companies since BPO jobs can pay relatively good salaries.

4. Educated Talent Pool

 Education is highly valued in the Philippines as most white-collar jobs require at least a college degree. This level of education makes the Filipino workforce highly competent and trainable in various fields. Among the sought-after college degrees Filipinos hold are in the areas of business management, engineering, medicine, and IT. 2020 statistics revealed that there are 190,000 IT graduates in the Philippines working in different tech hubs across the country. Most of these hubs are dedicated BPO centers catering to western clients.

5. 24/7 Coverage

the Philippine Business Process Outsourcing industry is geared towards adapting to the working time zone of its clients. Aside from working during regular US hours (or other country’s hours), Philippine-based BPO providers can also provide 24/7 coverage. This is highly essential for companies that require non- stop customer support even during weekends and holidays.

The Bottomline

Choosing a BPO Partner If you want to outsource one of your business processes to the Philippines, partnering with a reliable BPO provider is key to successful scaling. Luckwell Business Solutions is a seasoned service provider in Home Health Solutions – providing staffing needs for patient intake coordination, authorizations processing, medical data entry, physician’s order processing, and other related outsourceable tasks. Along with our team of dedicated professionals, we at Luckwell can help businesses of all sizes in all industries provide solutions for all their outsourced staffing needs. Get in touch with us to learn more about our services and how we can partner with you in growing your business.

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