Asia has emerged as the industry leader in outsourcing worldwide for many reasons. One of these is the region’s well-developed infrastructure, which includes transportation networks, dependable power, and telecommunications. Over the years, a handful of outsourcing hubs emerged in Asia and entered the global outsourcing market.
Are you looking to outsource some of your business processes to the world’s outsourcing powerhouse? Get to know the top outsourcing destinations in Asia and find out which among of them is the perfect location for building your team offshore.
Where to Outsource Your Business Processes in Asia?
There are many countries in Asia that offer outsourcing services and each has its own strengths. Here are some that continue to attract foreign investors:
The Philippines is a popular destination for outsourcing due to its large pool of English-speaking professionals and relatively low labor costs. If you’re looking where to outsource your customer service and technical support, consider outsourcing to the Philippines.
Because of its extensive pool of highly qualified professionals and somewhat low labor costs, India is a preferred location for outsourcing. India might be your top choice if you don't know where to outsource cheap software development services.
China is a significant player in the outsourcing sector and is renowned for its industrial prowess. You should consider China if you don’t know where to outsource your manufacturing functions.
Vietnam's low labor costs and expanding supply of qualified specialists make it a fast expanding outsourcing destination. It takes pride in industries like manufacturing and software development.
Due to its well-developed infrastructure and strong government support for the industry, Malaysia is a hub for outsourcing in Southeast Asia. It flourishes in industries like manufacturing, engineering, and BPO.
Indonesia has a big pool of competent workers and reasonably low labor costs, making it a destination for outsourcing that is expanding quickly. It specializes in industries including manufacturing, engineering, and IT services.
Thailand's established infrastructure and fairly low labor costs make it a popular outsourcing location. You may consider outsourcing to Thailand if you don’t know where to outsource your automotive services.
Due to its excellent technology skills and highly qualified workforce, South Korea is a significant player in the outsourcing sector. Engineering, research and development, and IT services are some of its strongest functional areas.
Which country is the Philippines main competitor in terms of outsourced jobs?
Given that both the Philippines and India have sizable populations of English-speaking people and a significant presence in the global BPO market, India is frequently seen as the Philippines' chief competitor in the BPO sector. It is crucial to keep in mind that the BPO sector is extremely competitive, and various countries may have unique strengths and disadvantages that attract businesses wishing to outsource business functions.
Why outsourcing to the Philippines is better than any other countries in Asia?
There are several factors that can make outsourcing to the Philippines more attractive than any other countries in Asia. These include:
The Philippines has a high level of English proficiency, with English being one of the country's official languages. This makes it easier for businesses to communicate with Filipino workers and reduces the potential for language barriers.
The Philippines has a large pool of skilled workers, including those with training in fields such as information technology, customer service, and engineering.
Outsourcing to the Philippines can be more cost-effective than outsourcing to other countries in Asia, as labor costs in the Philippines are generally lower than in other countries.
Proximity to major markets
The Philippines is located in close proximity to major markets such as China, Japan, and Australia, which can make it easier for businesses to access these markets.
The Philippine government has actively encouraged the growth of the outsourcing industry, providing support through initiatives such as the Philippine Economic Zone Authority (PEZA) and the Philippine Overseas Employment Administration (POEA).
What is the current rank of the Philippines in terms of outsourcing services?
The Philippines is widely considered to be a major player in the global outsourcing industry, particularly in the areas of business process outsourcing (BPO) and IT outsourcing.
According to data from the Philippine Department of Trade and Industry, the country is the world's second-largest provider of BPO services, with a market share of approximately 15% in 2022. It is also a leading provider of voice-related services such as customer support, helpdesk, and even back-office support such as data entry and accounting services.
Which is a better place for BPO: India or Philippines?
There are a few potential reasons why some companies may prefer outsourcing to the Philippines over outsourcing to India:
The Philippines has a high level of English proficiency, making it easier for companies to communicate with their outsourced employees.
The Philippines has a strong Western influence, which can make it easier for companies to work with outsourced employees from the Philippines.
The Philippines is in a similar time zone to many countries in the Western hemisphere, which can make it easier for companies to coordinate with their outsourced employees.
Build the Perfect Extension of Your Team in the Philippines
The Philippines has been the top outsourcing destination for global companies seeking low cost service yet cut above the rest. Multinational companies like Google and Microsoft have worked with some of the best minds in the Philippines and got faster ROI from outsourcing. Start building the perfect extension of your team in the Philippines with the right partner!
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