Top 3 Reasons Why Outsourcing in the Philippines is Successful

When outsourcing in the Philippines skyrocketed and reached the peak of success from the mid-`90s until before the COVID-19 pandemic, the Business Process Outsourcing industry remains to be one of the pillars of the Philippine government. According to the latest statistics, around 1.2 million people (including foreigners) are employed in outsourcing online from some 700 outsourcing firms in the country. It also contributes over 11% to the nation’s Gross Domestic Product (GDP).

When the coronavirus pandemic spread in almost all parts of the world, many businesses were affected. Some were forced to shut down. The Philippine government is very grateful for the continuous presence of the outsourced companies in the country because it helps the economy to survive and for Filipino BPO workers to keep their jobs.

Below are some good things in the outsourcing industry before and during the pandemic:

• Three out of 5 employees remain employed because many outsourcing companies apply the work-from-home strategy.
• Twenty-two percent of employees stay to work from the office. The government ordered BPO companies to provide accommodation, transportation, and meals for employees who work on-site.
• Before the lockdown took place, 40% of workers were already working from home.
• The outsourcing of e-commerce was boosted when community quarantines were enforced and restricted people from going outside their homes.

Now, let’s discuss why the Philippines continues to become the favorite outsourcing hub of many companies worldwide. We will focus on the top 3 reasons why outsourcing remains to be successful in the country:

Cream of the Crop — it is safe to say that Filipinos are one of the great workers. We have already proven that fact from millions of Filipinos working overseas. In almost every country, there are Filipino workers. Now, the outsourced online is another proof that Filipinos are one of the best workers. Many companies from different countries are impressed by the fluency of Filipinos in the English language. This nation has the highest English literacy among Asian countries. Probably because English was already taught to kids at the start of school. It becomes the second language of the country and has been widely used in any form of media, entertainment, social media, government correspondences, and medium of teaching.

Aside from that, Filipinos are known for being flexible and hardworking. They can adapt to people and situations (good factors to consider when you outsource customer service.) They are also known to be hardworking and patient regardless of difficulties in work because of their close affinity and love for their family.

The Philippines is the ideal place for labor and operational cost reductions — outsourcing to the Philippines is what many companies in the world are doing now after discovering how effective it is for cost-cutting, particularly in the labor cost. The simple explanation is this: your company will pay higher salaries to the employees from the developed nations while you can give very affordable salaries to Filipinos whose education and skills are similar to the high-paying workers. The reason is the standard of living in the Philippines is lower compared to the developed nations.

Strong government support — maybe you can’t find government support in the BPO industry in any country as strong as how the Philippine government gives. Ever since outsourcing in the Philippines has started, the government recognized outsourcing as one factor for economic growth. And as a way of gratitude, they give the outsourcing companies some tax exemptions. Furthermore, they include outsourcing as a part of education and training via TESDA or Technical Education and Skills Development Authority.

The pandemic isn’t yet over. But the Philippines’ resilience to economic challenge is already proven with the help of the outsourcing industry.

Outsourcing customer service is best done through OnlineFactory.