Why Choose the Philippines?

The Philippines is starting to become one of the primary locations for outsourcing and offshoring. In the recent survey done by Tholons entitled Top Outsourcing destinations, two cities in the Philippines are listed among the top 10. Aside from this, there are other reasons why the Philippines is becoming a first-choice destination for the outsourcing and offshoring industries.

Availability of Workforce

The Filipino workforce is one of the greatest advantages the Philippines has over it’s neighboring Asian countries.  Nearly 500,000 college graduates are produced each year, adding to the nation’s professional pool. But aside from the sizeable quantity, the quality is just as impressive. With higher priority given to the value of education, universities offer outstanding curriculum to all students. In fact, the literacy rate in the country is 92.6%. Also, Filipinos are well versed in the English language, both verbal and written. This is due to the fact that English is the primary language used in both education and business, making the Philippines the world’s third largest English-speaking country in the world. Communication with foreigners is not a problem at all because of the innate neutral and pleasant accent that Filipinos possess.  This access enables Filipinos to easily communicate with any English speaking foreign national that they would be interacting with.

The Filipinos are also known for having a diverse and advanced skill set. Whether it be in industrial, services, or agricultural industry, Filipinos produce exceptional work output.

Any business, no matter how big or popular they may be, will never succeed without talented people. And this is exactly what the Philippines can offer, a workforce that is sizable, skilled, and dedicated.

Low Costs

Aside from being an ideal location for Expats, the Philippines is also an ideal place for businesses who aim to expand their horizons or outsource certain business functions that are not available in their locations. Labour cost, office rental, professional services, tax, healthcare, food and lodging are all extremely reasonable and a lot lower compared to its neighboring countries. This low cost of living is what particularly attracts both tourists and businessmen to the Philippines.

Low cost of living means that businesses would have to spend a lower amount of money for operations especially for standard bills, leases, as well as employee salary and compensation. Salaries in the Philippines are comparably less than those in most Western and Asian countries having a minimum wage set at around $8-$9 a day. Even graduates from reputable schools can be hired for a salary of around $300 a month. Hiring an offshore team in the Philippines would pose a greater chance of growth in revenues. 

Strategic Location

The Philippines’ geographic location is what makes it special. It’s located in a strategically advantageous area when it comes to business. It’s located at the heart of Asia, the fastest growing region today, and is within immediate reach of its Asian neighbors. Also, it’s situated at the crossroads of Asian and international trade. It’s a gateway to the Association of Southeast Asian Nations (ASEAN) market and is an entryway of international shipping and airlines. The integration of economies within the framework of the ASEAN Free Trade Agreement (ASEAN-AFTA) has made the Philippines the natural and most strategic location for firms which would want to access the large ASEAN market and the trade opportunities within it. The Philippines has enhanced and prime areas for investors and it offers a dynamic consumer market accustomed to an array of products created by a very competitive domestic country.

The Philippines is also known as a destination for reliable, innovative, comprehensive and affordable outsourcing services. The country has a reputation for being the World-Class ICT hub of Asia for finance, telecommunications, utilities, retail, and distribution. The country offers a stable business environment and established infrastructure, especially when it comes to telecommunications which meets the demand of global enterprises.

The country is also known to be the home of leading professionals and specialists on the matters of software services, applications development, quality assurance, business services, human resource management among a multitude of other fields. Aside from this, the Philippines offers excellent infrastructure in the thriving metropolitan hubs which are perfect for business development. Power sources and network service providers are very reliable and have a 100-200% back-up as standard.

Philippines location and set up infrastructure has given confidence for companies to set up their own operations and bring work to the country to support their offices in higher cost locations.

Growing Economy

The economy is expanding by 6.8 percent; lifting last year’s growth to 6.6 percent. The Philippines also has a well-developed communication, transportation, business and economic infrastructure that links the three main islands of the country– Luzon, Visayas and Mindanao, providing a solid link for businesses with locations all around the nation.

A 24/7 international connectivity has also contributed to the Philippines’ economic advancement. Fiber Optic cables and Satellite backups have ensured that the connections remain stable and constant, an important factor in today’s age of fast-paced and advanced technology. This enables remote areas in the country to turn into functional and efficient business centers.  [dti.gov.ph]

Along with the general economic growth, it is seen that Philippine Business Process Outsourcing (BPO) will continue its growth these coming years. By the end of the year, the industry is seen to reach an annual revenue of $16 billion, allowing the Philippines to keep its place as one of the world’s top BPO or Information Technology and Business Process Management (IT-BPM) destinations.

During the past year, the government has taken great measurements to enable the industry to be more competitive in a global level. According to Jomari Mercado, the IBPAP president and CEO, the IT-BPO industry will continue to surpass economic expectations for both domestic and international observers.