More and more companies are looking to the Philippines for their BPO needs. Whether it’s offshoring or outsourcing, the Philippines provides businesses with some of the best resources and top level employees at a fraction of the local cost.
This shouldn’t come as a surprise. For nearly 20 years, the Philippines has cultivated a business landscape where the BPO industry can thrive. The country is able to service all types of functions for a wide range of industries. Many major companies from Australia, Canada and the United States consider the Philippines a second home for their business because of this.
The BPO Industry at Glance
The Philippine BPO industry started around 1992. In the two decades since, it has become the second biggest contributor the Philippines’ GDP. Over the last 10 years, it has experienced a growth in the excess of 25%. In 2016, it generated 1.3 million new jobs in the Philippines with 17% annual growth. By 2018, revenue from the industry will outpace remittances brought in by Overseas Filipino Workers.
Because of this rapid growth, the Philippine government continues to fully support the BPO industry. There are established dedicated economic zones around the country where businesses are given government assistance and tax incentives.
The heart of the Philippine BPO industry is in Metro Manila, home to the country’s business districts. In recent years, there has been a push for the BPO industry to expand beyond Manila and into newly developed business areas in provinces like Cebu and Davao. Although majority of its primary assets are still found in Metro Manila, greater nationwide expansion is certainly excellent news for the Philippines and its businesses.
Cost Savings and Quality of Work
One of the biggest concerns about the BPO industry is the quality of work it can provide. Companies are concerned that they may not live up to the same standards of work locally. The cost to have offshored employees might not even seem practical.
However, the quality of work coming out of the Philippines is second to none and is comparable to local employees. The talent pool in the Philippines is deep, with. Additionally, hiring them costs a fraction of what you would pay locally.
Take offshoring for instance. Companies that have an offshore team in the Philippines see savings up to 80%. This includes rent, salary, HR and IT support and other costs that need to be considered. Likewise, companies that outsource to the Philippines can expect savings of over 50%.
The Filipino Community
Filipinos bring a unique, positive dynamic to any company. Culturally, they are heavily influenced by western countries and customs. They speak English very well, which makes them easy to converse with. Their awareness of western culture also makes them very relatable.
Understand also cultural traits that are uniquely Filipino. For one, Filipinos are extremely close to their families. Their strong sense of loyalty to those dearest to them is vital to their professional and personal development. Their discipline and strong work ethic shows when they are deeply committed to the business they are in. Filipinos work hard for their families and give all their efforts for their companies. This is why many Canadian and American companies choose to have Filipino employees offshore despite the major time differences across both countries.
More Growth Through The Years
Despite an air of uncertainty – especially in the era of the Trump presidency – growth in the Philippines will continue. The current climate is a certainly cautiously optimistic one. However, business leaders in the Philippines see consumer driven economic growth continuing.
The BPO industry remains at the pulse of future business trends. It adapts to current technologies and leverages them to your business’ advantage. More global companies are recognizing what Filipino employees can do for them. It’s certainly an exciting time to do business in the Philippines.