According to the latest 2018 Tholons Report, the Philippines continues its journey towards becoming the next offshore global outsourcing powerhouse. Currently, it ranks second in the Top 50 Digital Nations in the World next to India.
Since 2016, the country’s BPO Industry remained on an upward trend. By 2020, the outsourcing industry is projected to generate an income of US$40-55 billion. The Philippines remains the ideal offshoring destination for companies that are looking for Customer Service, Financial Services, Software Development, Graphic Design and other specialized roles. There are several reasons for this.
Strong English Verbal Skills
In the early 20th century, the Philippines became a colony of the United States. During this period, they were heavily influenced by western culture, both in communication and entertainment. As a result, Filipinos became well-spoken with the English language. Having the second highest English literacy rate in Asia, Filipinos are easily understood, meaning they will interact with your local team members and customers easily, reducing the chances of negative experiences and ensuring better customer engagement.
Competitive and Cultural Advantage
Filipinos are known to be resilient and always have a strong positive outlook. The Philippines may not be a technological powerhouse like China, but it is able to adapt to new trends and changes in technology. Their critical and strategic problem-solving skills let them resolve difficulties in and out of the office. Their respectful approach towards cultural diversity also makes them work harmoniously with others despite cultural differences.
High Quality and Excellent Services
The Philippines maintains a western level of education and has a deep talent pool. With about 400,000 graduates a year, many Filipinos are experienced in a wide range of roles, from accounting, communications and administration. Outsourced staff from the Philippines are also competing on a global scale against top countries in several industries like web and software development, animation, and others.
A Cost-Effective Offshoring Destination
Offshoring in the Philippines remains to be one of the most cost-effective strategies that companies are considering. Many businesses in Australia, Canada, and the United States continue to benefit from this strategy. For instance, the average annual salary in Australia for entry-level employees is over AU$40,000 and US$42,000 in the US.
In the Philippines, that amounts to just US$5,300. Whatsmore, the average annual salary at the supervisory level in the Philippines is US$6,700, and US$13,000 at the managerial level. Through these cost savings, the high quality of work does not diminish as well. Additionally, other operational costs such as office space, internet services and equipment are also more affordable.
The Philippines – Your Next Offshore Outsourcing Destination
While offshore outsourcing in the Philippines continues to be a favourable strategy for many businesses, finding success through it is not something that happens overnight. It requires consistent engagement and development of your team as you establish their roles in the company. But working with the right provider can ensure that your offshoring experience is a smooth one.
Diversify’s experience with the Philippines has made us one of the leading offshore service providers in the country. If you wish to start your offshore journey with us, feel free to contact us today.