Why do many companies want to outsource to the Philippines?
Decades ago, many Filipinos went abroad in search of better jobs and higher wages. But when outsourcing in the Philippines started and provided many job opportunities, it gave the Philippines a chance to work for a better life without leaving the country. The proportion of companies outsourcing some of their business functions to the Philippines is increasing overwhelmingly. The big question here is, why do many businesses want to outsource to the Philippines?
Outsourcing is a business process in which companies hire external organizations to perform certain business functions and tasks that are not the focus of their company but are crucial to running the business. As the years go by,outsource to the Philippines? has evolved and continued to grow as more companies, whether large or small, have taken their business there and created virtual teams to handle different types of jobs.
Lower labor and operating costs are the main reasons why many companies around the world choose to outsource their customer service in the Philippines. As a wise entrepreneur, whether you are managing large companies or just a start-up company, you can save 60-80% in operating costs. And you can pay less for quality work because the salary of new graduates in the Philippines is lower compared to employees from the US or European countries. You can pay Filipino highly skilled workers salaries that are 75% less than Americans in the same positions. This is due to the low cost of living in the country. Materials and supplies that can be used to set up an office are cheaper, as are goods. The Philippines can live comfortably with high wages that can be considered low in western countries. Even start-ups can have their own outsourced team in the Philippines.
Knowledge of English is another factor why it is a reasonable decision to outsource your e-commerce in the Philippines. The proportion of Filipinos who speak fluent English is 70%, and this is not surprising since English has started to be taught to children even before they start school. And as English is the medium of instruction for all schools and becomes the main language of local trade, fluency is strengthened and improved. In addition, the Philippines is exposed to English media every day. Thus, outsourcing of customer service is one of the largest in outsourcing of business processes in the country.
Being hardworking, creative, very skilled and having impressive work ethic are the third reasons why many countries choose the Philippines to entrust their business processes. Hard working and has an impressive work ethic because the Filipinos have to do their best for the welfare of the family. Creative because many locals are talented. And very skilled because the Philippines has a large young population who have a college degree and are sufficiently well-educated and talented for those who are just reaching college level. Every year, colleges and universities produce about 500,000 plus to the pool of skilled workers. Outsourcing companies in the Philippines will continue to benefit from this young and talented workforce for years to come.
Outsourcing is also one of the most useful industries that contributes to the country’s growth. Most Filipinos choose to work in the BPO industry and use it as their professional career, which also gives them a higher remuneration compared to the average salary.
