When you do your research on the top outsourcing destinations in the world, the Philippines is commonly on the top of the list. You’ll read about some multinational companies that have outsourced to the country and how their successful stories paved the way for others to leverage Philippine outsourcing.
But you may ask, “Is it a good deal for my business to outsource to the Philippines?” This blog article will help you answer that question. Read further about the pros and cons of outsourcing to the Philippines and learn the first step towards growing your business with the right experts.
What are the advantages of outsourcing to the Philippines?
Outsourcing to the Philippines has helped thousands of foreign companies drive growth on their bottom line and internal capability. Here are some of the pros of outsourcing to the Philippines you need to take note:
Large pool of skilled and educated workers
The Philippines has a large and growing workforce, with a high proportion of individuals who have received higher education. This makes it an attractive destination for companies looking to outsource tasks that require specialized knowledge or skills.
Lower labor costs
One of the main advantages of outsourcing to the Philippines is the labor costs that are relatively lower than the country’s Western counterparts. This helps companies reduce their overall operating costs, which can in turn help them to be more competitive in the global market.
Flexible time zones
The Philippines is located in the Asia Pacific region, and has a time zone that is similar to many other countries in the region. This can make it easier for companies to communicate and collaborate with their offshore teams, which can be a significant advantage for companies that need to work closely with their outsourced teams.
Superior English proficiency
The Philippines has a strong tradition of English language education, and as a result, many workers in the country are highly proficient in English. The benefit of outsourcing to the Philippines includes easier communication with your offshore teams. This can reduce misunderstandings and improve the overall quality of work produced.
Solid government support
The government of the Philippines has put in place policies and initiatives to support the growth of the outsourcing industry. This can help to create a more favorable business environment for companies that are looking to outsource to the Philippines.
Cultural ties with Western countries
The Philippines has a long history of cultural and historical ties with Western countries, which can make it easier for US companies to work with their offshore teams. That means reducing cultural barriers at work is among the positive effects of outsourcing to the Philippines.
What are the disadvantages of outsourcing to the Philippines?
Even the world’s top outsourcing destination can’t tick all the boxes. There are also drawbacks to outsourcing in a country that’s not within your geographical location. Here are the cons of outsourcing to the Philippines you need to be aware of:
Pro-employee labor code
In the Philippines, a worker cannot be fired arbitrarily by an employer. Any Philippine employee who wishes to be terminated must have a good reason and the appropriate paperwork. The employer must also give the designated severance pay upon terminating any employee. Labor laws that support employees do, however, result in much reduced rates of turnover.
Disruptive weather patterns
The Philippines is an island country located in the West Pacific Ocean. It is prone to tropical storms and typhoons, which can cause power outages and disrupt work and school. Additionally, it is situated in the Pacific Ring of Fire, which means it is at risk for earthquakes and volcanic eruptions.
Despite these challenges, outsourcing companies like ManilaPros are well-equipped to handle remote work, and some companies even offer the option to work from home in case of natural disasters. This allows businesses to continue operating despite any disruptions.
The Philippines has 18 official non-working government and religious holidays, compared to the US, which has 11. These holidays are considered important to the predominantly Christian population of the Philippines. However, employers are allowed to ask their employees to work on these days, and the decision to do so is up to the employer. Additionally, employees must be paid more if they work during legal holidays according to Philippine labor laws.
Weighing In the Pros and Cons of Outsourcing to the Philippines
When you choose to outsource, it’s important that the pros outweigh the cons. After all, you’ll shell out some money and you want all the positive results from your investment. Choosing a reliable service provider can help you with this. Here are a few key things to look for when partnering with an outsourcing service provider:
- Expertise and experience: Make sure the outsourcing company has the necessary expertise and experience to handle your specific needs.
- Flexibility: Look for a company that is flexible and able to adapt to your changing business needs.
- Communication: Effective communication is key to the success of any outsourcing relationship. Look for a company that is responsive and easy to work with.
- Cost: Outsourcing can be a cost-effective way to get work done, but be sure to carefully evaluate the company's pricing and ensure that it aligns with your budget.
- Reputation: Take the time to research the outsourcing company's reputation and read customer reviews to get a sense of their quality of work and level of customer service.
Hire the Best Ecommerce Pros in the Philippines
Outsourcing, just like any other business strategy, has a fair share of risks. But you can minimize the risks associated with outsourcing with the help of a trusted service provider. This will allow you to expand your operation in a competitive outsourcing hub while growing your business exponentially.
ManilaPros, a leading Ecommerce service provider in the Philippines, offers flexible subscription-based packages for customer support, graphic design, and product information management. Our reasonably priced subscription with no setup fees and hidden charges can help you scale your operations at a low cost.
With our 100% quality assurance and fast turnaround times for most projects, we’ll help you see quick ROI from your outsourcing investments. Reach out to ManilaPros today and learn more about our services.