Why outsource to the Philippines?

Keeping an organisation running smoothly is a full-time job. Especially when it comes down to the ultimate balance of controlling costs without jeopardising quality. Leaders are constantly on the lookout for ways to achieve this perfect medium.

Probe | Why outsource to the Philippines?

For some, the solution comes in the form of outsourcing. This involves hiring quality employees in different parts of the world and labour markets that offer highly skilled and educated staff who value maintaining quality standards. Why is it so appealing? Well, when you outsource to a low-cost economy like the Philippines, cost efficiencies are a major benefit.

With the Philippines securing its place as one of the fastest-growing economies in Southeast Asia, it’s no wonder organisations globally are turning to their outsourcing solutions. In the Philippines alone, the outsourcing industry is worth AU $38.7 billion and is anticipated to grow 6% in 2022 alone.

7 reasons to outsource to the Philippines

To keep things simple, we have listed our top seven reasons why the Philippines could be the next best investment you make.

1. No issues with time differences

Filipinos are more than happy to work the hours necessary to get the job done. This could mean working night shifts, weekends, on public holidays or across different timezones; whatever is necessary to accommodate client needs. When it comes to time differences, the Philippines actually has the exact same time zone as Perth.

The flexibility Filipinos exhibit means businesses can consider increasing their operating hours, especially in the field of customer service. Always wanted to invest in a 24/7 contact centre but initial setup and maintenance costs have held you back? Outsourcing to the Philippines could be the answer.

English proficiency

In Education Firsts’ 2021 English Proficiency Index, the Philippines got a score of 592 out of 700. For context, the highest rating country, the Netherlands, scored 663 out of 700. The index goes on to measure the Philippines’ English competency out of 112 countries, where it was ranked 18th; second only to Singapore in all of the Asian countries assessed. English is also one of the official languages of the Philippines and is used across a variety of verbal and written instructions within its educational and vocational institutions.

Quality talent

The Philippines offers outsourcing services in a variety of fields outside of just customer service. These include human resources, customer service, financial services, accounting, eCommerce, real estate, web development, digital marketing and administration support to name a few more.

Thanks to its excellent universities and a very young and ambitious population, the Philippines produces highly motivated graduates yearly with degrees on par with international education standards. The legal, financial and government systems of the Philippines are also based on those of Western countries like the United States. The Western “ways of doing business” is second-nature to Filipinos as a result.

Committed work ethic

Filipino teams display excellent values, work ethic, loyalty, integrity and a service-oriented mindset thanks to the friendly environment they seem to foster, both in and outside of the office space. They show innate respect for individuals and place high regard on professionalism.

They are naturally a respectful culture, and this is evident in their workplace interactions with their colleagues, clients and leaders. Being able to work well under pressure due to their patient and inviting demeanour allows their positive attitude to generate the success behind outsourcing teams in the Philippines.

Cost-effective economy

Filipinos take pride in their work and strive to produce quality outputs. Just because it’s possible to save on costs due to the low-cost economy of the Philippines, quality isn’t at risk. The difference in staff costs, benefits and operational effectiveness between countries make the Philippines a more appealing outsourcing location. The Philippines has made tremendous progress in terms of the quality and reliability of its infrastructure. Businesses can operate effectively and expats can enjoy a very high quality of life in Manila, Clark, Cebu and other Filipino cities.

Salaries are roughly around 30% less than what they are usually in Western economies. So, cost savings of up to 70% on employment costs alone is a huge motivational factor for businesses who outsource to the Philippines.

The cost of living in the Philippines is also much lower than in most Western countries. However, a lower cost of living doesn't mean a lower standard of living. In fact, many outsourcing companies in the Philippines offer employment to local Filipinos to help support them and their families.

Government-backed outsourcing initiatives

The outsourcing industry is one of the main revenue generators in the Philippines; it employs over 1.2 million people. Because of this, the Philippine government provides support and infrastructure for outsourcing companies and organisations that set up an outsourced team in the country. Some of the government-supported initiatives include partnerships with Filipino universities to create outsourcing-focused curricula to better prepare the future outsourcing workforce and tax and non-tax incentives to support foreign investment.

Cultural indifferences

Taking a look at history, the Philippines was colonised by foreign forces from Spain, the United States, Japan, Portugal and other Western countries. This means that Filipinos were influenced by ethical values, traditions, customs, behaviours and ways of life that stemmed from their colonisers in the past.

This history is what has built the Filipino character at present. Not only have they adopted many of the western cultural traditions but also the lifestyle. They communicate effectively with their foreign partners in the industry as they can speak about similar topics of interest from politics, television, sport, work concerns or even what is happening in the news. This can help establish a sense of belonging and bonding between the local and offshore teams.

Interested in outsourcing solutions for your business?

For more than four decades, Probe CX has been helping clients deliver exceptional customer experiences that have a positive impact on their reputations, objectives and revenue growth. With many businesses facing the hardship of rising labour costs and talent shortages, this extends to connecting them with our professional, qualified staff both onshore and offshore across Australia, New Zealand, the Philippines, the United States and India.

If onshore isn’t your style, Probe CX is the perfect partner for establishing an offshore team in the Philippines that is fully committed to supporting your business, allowing onshore colleagues to focus on the core tasks and strategic priorities that separate good organisations from great ones.

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