The Philippines’ outsourcing industry began with the opening of a contact center in 1992, which started off what was
considered the “First Wave” of outsourcing in the country. In the early days, the call centers provided mostly basic
services such as service management and email response.
Over the years, outsourcing in the Philippines slowly grew into
a highly lucrative billion-dollar industry, thanks to a robust economy and strong support from the government. Soon,
high-profile outsourcing firms made its way to the country, kicking off the Second Wave of the industry. 1995 was
considered another notable year for the industry, as the passage of the Special Economic Zone Act allowed the
establishment of the Philippine Economic Zone Authority
(PEZA), making the country a very desirable option for investors.
Today, the
Philippines is home to hundreds of BPO companies that provide a wide range of services, including call center
services, data transcription, digital content creation, engineering development, and many more. The country is now
in its Third Wave, with many companies seeking more ways to provide higher-value services in today’s age of
automation. For this reason, the Philippines remains one of the top destinations for local and international
companies looking to outsource.
If you’re thinking about setting up a business in the
Philippines for outsourcing, here are some of the many benefits you’ll be able to get:
English proficiency
One of the main reasons why the Philippines is one of the top
outsourcing destinations in the world is the Filipinos’ English fluency. In 2019, the Philippines registered a 60.14
EF EPI score, placing it in the 20th spot out of a hundred countries in the EF English Proficiency Index.
The country is currently ranked #2 in Asia, behind Singapore.
Adaptability to different cultures
Filipinos possess an ability to adapt easily to different
cultures due to having strong influences from the West and neighboring countries in Southeast Asia.
Having
employees who are able to adjust to different cultures easily is one of the biggest advantages for outsourcing
companies in the Philippines. Exposure to a variety of cultures allows for seamless communication between contact
center workers and clients, which leads to a high quality customer service.
Improve your services
Building a team in the Philippines is an excellent way to
improve the quality of service you provide and receive. Having an offshore customer service team allows you to
provide 24/7 service in a variety of ways that were not possible before.
Flexibility
Through outsourcing, foreign companies are able to assemble a
virtual team with diversified talents, and are capable of handling a range of tasks, including help desk support,
marketing and sales, multimedia content, data entry, research, and more.
The
Philippines is home to a dynamic workforce filled with candidates who possess diversified skill sets – the sky’s the
limit!
Cost-effective investment
Foreign companies who choose to outsource services to
Philippine BPO companies get more value for their money, helping them achieve the main objective of outsourcing,
which is to ultimately reduce costs.
Beyond the sizable difference in labor costs however, is that
the Philippines is known for producing work of exceptional quality, thanks to the country’s 95% literacy rate and
its array of top-ranking colleges and universities that produce reliable and skilled graduates every year.
Seamless and stress-free management
Choosing the right outsourcing provider means you’ll have a
reliable, professional HR and management
team at your side. Although you are still responsible for training and task delegation, you won’t
need to deal with common issues such as ensuring employees show up on time, approving sick/vacation leaves, tax
returns, and so on.
Your HR team will handle all of these and more for you, allowing
you to focus on the core of your business.
The Philippines’ Data Privacy Act
The Philippines’ Data Privacy Act of 2012 (Republic Act 10173)
is a key element that enhances the country’s outsourcing industry, as it gives foreign companies an assurance that
the country abides by all International Data Privacy Standards. This is crucial for services such as healthcare
outsourcing and human resources outsourcing, as personal information and other sensitive data is involved.
The act
mandates all outsourcing companies to guarantee the protection of any personal data collected through outsourcing
operations, which gives foreign companies confidence in investing in the country.
Are you
planning to outsource your services to the Philippines? Get in touch with our team today to talk about your plans
and goals. Call us at +1.806.553.6552 or send us a message here.
One Response
The outsourcing industry in the Philippines began its journey in 1992 with the establishment of a contact center, marking the “First Wave” of outsourcing in the country. Initially, call centers focused on providing basic services such as service management and email response. Over time, fueled by a robust economy and substantial government support, the industry evolved into a highly lucrative billion-dollar sector. The arrival of high-profile outsourcing firms heralded the “Second Wave,” significantly boosting the industry’s growth. A pivotal moment came in 1995 with the passage of the Special Economic Zone Act and the creation of the Philippine Economic Zone Authority (PEZA), which positioned the Philippines as an attractive destination for investors, further accelerating the expansion of its outsourcing landscape.