Why do companies prefer to outsource to the Philippines? Is it because of high-quality
work, a favorable time zone, outsourcing-friendly policies or low labor cost? The answer
is all of the above. Over the years, the Philippines has evolved into being the world’s
most preferred outsourcing destination for a host of IT services across domains.
The Philippines is one of the few outsourcing locations that offer several advantages
that enable organizations to work more efficiently, cut down on cost and improve
quality all at once.
work, a favorable time zone, outsourcing-friendly policies or low labor cost? The answer
is all of the above. Over the years, the Philippines has evolved into being the world’s
most preferred outsourcing destination for a host of IT services across domains.
The Philippines is one of the few outsourcing locations that offer several advantages
that enable organizations to work more efficiently, cut down on cost and improve
quality all at once.
Here are some reasons why USA outsource to the Philippines.
1. English Language Proficiency.
The Business English Index (BEI), a whitepaper released by Global English in 2013
ranks the Philippines as the top BEI for two consecutive years with a score of 7.95,
far ahead of the next country Norway with 7.06, and the Netherlands with 7.03. The
BEI study is designed to quantify global workers’ English competency in the workplace.
A BEI score of 1.0 indicates the ability of people to communicate and read-only
through simple English statements, while a score of 10.0 indicates equivalency with
native English speakers. Given these rates, there’s no doubt the Philippines is by
far the top outsourcing location in the world.
ranks the Philippines as the top BEI for two consecutive years with a score of 7.95,
far ahead of the next country Norway with 7.06, and the Netherlands with 7.03. The
BEI study is designed to quantify global workers’ English competency in the workplace.
A BEI score of 1.0 indicates the ability of people to communicate and read-only
through simple English statements, while a score of 10.0 indicates equivalency with
native English speakers. Given these rates, there’s no doubt the Philippines is by
far the top outsourcing location in the world.
2. Highly Skilled Talent.
While it is a popular misconception that BPO in the Philippines is limited to call
centers, there are a large number of providers offering talent across a multitude of
fields including medical transcription, human resources, customer service,
financial services, legal transcription, software development, animation,
graphic design, content writing, and marketing. Contrary to the belief that the
primary reason business owners outsource is only to reduce costs, they also
choose to outsource to target the best talent for the job.
centers, there are a large number of providers offering talent across a multitude of
fields including medical transcription, human resources, customer service,
financial services, legal transcription, software development, animation,
graphic design, content writing, and marketing. Contrary to the belief that the
primary reason business owners outsource is only to reduce costs, they also
choose to outsource to target the best talent for the job.
3. Excellent Work Ethics.
Business owners invest in Filipino teams due to their excellent work ethic,
values, integrity, loyalty, service-oriented mindset, and the friendly working
atmosphere they seem to foster in any organization’s culture. They value
integrity just as much as they value time and show innate respect for individuals.
Filipinos generally know what fun is without forgetting what responsibility entails
and they place high regard on professionalism.
values, integrity, loyalty, service-oriented mindset, and the friendly working
atmosphere they seem to foster in any organization’s culture. They value
integrity just as much as they value time and show innate respect for individuals.
Filipinos generally know what fun is without forgetting what responsibility entails
and they place high regard on professionalism.
4. Quality Yet Cost-Effective.
Simply because Filipino talent is a low-cost alternative for businesses, does
not mean quality is jeopardized. The difference in labor costs, benefits, and
operational effectiveness between countries make the Philippines a more
appealing location to outsource and grow an offshore team. The cost of labor
in the Philippines is much lower when compared to other outsourcing locations.
In fact, low-cost services are one of the primary advantages that you can
leverage by outsourcing to the Philippines.
not mean quality is jeopardized. The difference in labor costs, benefits, and
operational effectiveness between countries make the Philippines a more
appealing location to outsource and grow an offshore team. The cost of labor
in the Philippines is much lower when compared to other outsourcing locations.
In fact, low-cost services are one of the primary advantages that you can
leverage by outsourcing to the Philippines.
5. Preferred outsourcing location
Research surveys have proved time and again that the Philippines is the most
preferred outsourcing location among global companies. In the United States
alone, more than 90% have ranked the Philippines as their first choice for
outsourcing IT and software services. Over the years, the United States, Canada,
Europe, and the United Kingdom have recognized the country of the Philippines
as an outsourcing superpower.
preferred outsourcing location among global companies. In the United States
alone, more than 90% have ranked the Philippines as their first choice for
outsourcing IT and software services. Over the years, the United States, Canada,
Europe, and the United Kingdom have recognized the country of the Philippines
as an outsourcing superpower.
6. Unique time zone advantage
As any business will tell you, time is equal to money. If a company can get access
to 24/7 services, it can be sure to complete work much ahead of deadlines and
take on more projects. Customers are happy when they can avail services or get
their queries answered on a 24/7 basis. Now, this has become a reality with
outsourcing.
to 24/7 services, it can be sure to complete work much ahead of deadlines and
take on more projects. Customers are happy when they can avail services or get
their queries answered on a 24/7 basis. Now, this has become a reality with
outsourcing.
7. Stable government
When compared with other outsourcing locations, the Philippines has a stable
government. The IT sector has always been a top priority for The Philippines
government has ensured that the outsourcing process is seamless by setting
up a ministry of information technology. This IT ministry streamlines regulatory
processes and quickly approves the implementation of IT projects. Over the past
10 years, the Philippines has been able to build several hi-tech IT parks with
cutting-edge technology and best-of-breed infrastructure.
government. The IT sector has always been a top priority for The Philippines
government has ensured that the outsourcing process is seamless by setting
up a ministry of information technology. This IT ministry streamlines regulatory
processes and quickly approves the implementation of IT projects. Over the past
10 years, the Philippines has been able to build several hi-tech IT parks with
cutting-edge technology and best-of-breed infrastructure.
The economy of the Philippines continues to undergo significant change due to
increasing competition. Given the changing situation, it is a wise proposition to
begin experimenting with Philippine outsourcing just like what Digital Marketing
Concepts did. Doing so will provide a potential competitive advantage over
your competition. In the end, you will find your company in a position to produce
more product, profit, and net income, and continue the American tradition of
business productivity.
increasing competition. Given the changing situation, it is a wise proposition to
begin experimenting with Philippine outsourcing just like what Digital Marketing
Concepts did. Doing so will provide a potential competitive advantage over
your competition. In the end, you will find your company in a position to produce
more product, profit, and net income, and continue the American tradition of
business productivity.
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