The Philippines is one of the top destinations globally for Business Process Outsourcing (BPO) providers.
It is currently the second largest in the world and projected to become even bigger. The Philippine BPO industry is estimated to generate 1.3M jobs in 2016 with a growth rate of 17% annually. A combination of factors contributes to its phenomenal growth.
Check out the six reasons why the Philippines has become one of the top outsourcing destinations by the world’s major outsourcing providers.
1. Filipinos have a strong work ethic
Long before outsourcing has become a global phenomenon, the Filipino people has established a reputation for a strong work ethic. This is especially evident in the demand for Filipino workers overseas. This love for work is inculcated at an early age, becoming part of the Filipino workers’ core values they enter the BPO industry.
2. Filipinos are a highly educated people
The Philippines have always placed a high value on education, evidenced by a 95.9% literacy rate. Most Filipinos are university educated, with many opting to either pursue higher studies. Furthermore, the Philippines overhauled its education system to conform with global education standards and produces an average of more than 500,000 graduates annually.
3. The Philippines has a strong and stable economy
The Philippines is one of the most dynamic markets in the Souteast Asian region, growing an average of 5% since 2002. Along with a grwoth rate signficantly better than the last two decades, the Philippines has also proven itself resilient to food and fuel price hikes as well as the global financial crisis and recession.
4. The BPO industry has government support
The BPO Industry continues to enjoy broad support specifically tailored for Business Process Outsourcing (BPO) from the Philippine Government. It is one of the top priorities of the current administration, recognizing the BPO industry’s huge potential for growth - from US$ 11B worth of revenues in 2011 to an estimate of US$ 25B in 2016.
5. The Philippines is cost competitive
The Philippines has a much lower cost of living compared to most Western countries. Companies who outsource their business here pay a fraction of what they would have paid in their home country. This also means flexibility for small to medium size enterprises, allowing them to expand or downsize their operations as the situation requires.
6. Filipinos speak English well
An estimated 92.58% of the Philippines’ 98.39 million population is able to speak English well. It is taught in schools and widely used in official functions and popular media. Filipinos are adept in speaking English in business situations and casual conversation. Aside from this, they also have a good grasp of Western culture and business practices.
Outsourcing can help your business get to the next level. If you’re planning to outsource make sure that you’re clear from the get go why you’re doing this, what you hope to get out of it, and how you can make it a success. We can help you with that.
CLEAR provides customised outsourced solutions to small to medium size companies in Australia. With our extensive experience in recruitment, integration management, and delivering outsourced solutions for companies in Southeast Asia we can help you get the most out of outsourcing.
Get in touch for a free consultation:
1300 300 269 (Australia)