With the rising rates of expenditures required for operating a business, companies continuously seek avenues where they can cut costs. This is where business process outsourcing (BPO) comes in. By delegating certain functions and administrative tasks to an offshore staff, companies are able to pursue cost-efficient operations while still maintaining high-quality service to its customers. Here are the benefits of outsourcing Philippines style.
In the Asian region, the Philippines remains to be a forerunner in the BPO industry, displaying a consistent fast-paced growth. In the past few years alone, the Philippines was able to make it to the top list of the most preferred BPO destinations globally.
Why do foreign businesses continuously invest their operations in the Philippines? Well, it’s because of these several undeniable benefits of outsourcing Philippines style that their company enjoys:
Cost Competitive Advantage with High-Quality Service
As a developing country, living expenses in the Philippines are significantly lower in comparison to mature economies. In moving operations here, businesses can expect high-quality services at a fraction of the cost. This is because they won’t need to spend so much on infrastructure, equipment, office space, recruitment, and legal costs. BPO firms handle these for you.
The Philippines’ low Consumer Price Index (CPI) for food, transportation, and utilities also offer significant advantages compared to its other neighbouring contemporaries. The daily minimum wage in the Philippines is just around $9 or £6.45 per day. For less than $500 or £300 per month, a company can already employ a qualified and competent individual from a reputable university to help with your business.
This low CPI and operational expenses along with the competitive salary rate enable foreign businesses to save a lot by investing in the Philippines.
Operational Efficiency with a Highly Skilled Workforce
Multinational companies have already put their trust in the Filipinos. This is not just because of the low business cost that the country offers. What makes the Philippines a prime destination for BPO operations is its consistent delivery of superior service offered by its highly competitive workforce. With a literacy rate of 97.5% based on a 2010 national census and the production of approximately 450,000 tertiary graduates annually, the quality of Philippines’ workforce is one of the highest globally.
The flexibility of Filipino employees is also regarded highly worldwide. For its BPO industry, its major strengths include the call center sector with voice and non-voice support; IT helpdesk; legal and medical transcription; finance, logistics, and accounting; recruitment; and software development and animation.
Language and Cultural Compatibility
A country rich with American and Spanish influence, the Philippines embraces the Western culture. Both in the education and business sectors, English is considered the primary language. This enables every Filipino to develop an impeccable proficiency of the English language. From business operations down to the working schedule — even with the required accents and languages, the Philippines can surely meet the working requirements you need.
Business Incentives and Robust Government Support
The influx of BPO firms provides mutual benefit both for the country and foreign businesses. With this benefit is the encouragement for the Philippine government to support it. In fact, the country’s legal regulatory framework and financial reporting policies are based on the American guidelines. In 1995, for over two decades, the country had already established the Special Economic Zone for local and foreign enterprises.
The additional business incentives foreign companies enjoy in the Philippines are exemptions on local taxes and permits, permanent residence for foreign investors and their families, duty-free import of capital equipment, and exemption from corporate income tax for four years, which could be extended to eight years.
With a local government that is at full support of the industry and a talent pool of highly skilled professionals, outsourcing in the Philippines is definitely the best decision you can do today!
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