Choosing the best outsourcing destination for your outsourcing initiative can either make or break your business. It is important to carefully consider the location of any company you are thinking of outsourcing to, as the location can affect a number of factors such as the cost of labor, the quality of work, and the time zone differences.
In this blog article, we explained why the Philippines remains the world’s top outsourcing destination along with other key players in the global BPO industry:
Which country is best for outsourcing?
Depending on the particular requirements and preferences of your business, several countries may be the best choice. India, China, the Philippines, and numerous nations in Eastern Europe are some popular locations for outsourcing, and each has distinct advantages and strengths.
For instance, China and Eastern Europe are known for having cheaper labor prices whereas India and the Philippines are known for having a huge pool of English-speaking workers. It is crucial for businesses to thoroughly weigh their options and select the location that best meets their business objectives.
Which country is the most popular outsourcing location?
There are many popular outsourcing locations around the world, and the one that is considered the most popular can vary depending on a number of factors, such as the type of work being outsourced, the industry, and the specific needs and preferences of the company doing the outsourcing.
Some of the popular outsourcing destinations include India, China, the Philippines, and many countries in Eastern Europe. India is popular for its cheap software development services while the Philippines is widely known for its world-class customer support services. In fact, it has been dubbed as the world’s call center capital in the last decade.
Which country is the world leader in BPO?
Tholons releases a ranking of the top outsourcing countries every year. The ranking is based on factors like digital competitiveness, population, total workforce, and literacy rate. The top countries shaping the future of the global BPO industry are the Philippines, India, China, Poland, and Mexico.
- The Philippines is known for its call centers and ranks first for voice-related services.
- India is a leader in software outsourcing and has a large number of tech specialists.
- China is a manufacturing hub due to its business environment, lack of regulation, and low taxes and labor costs.
- Poland has a large market for outsourcing services in Eastern Europe, especially in finance and accounting.
- Mexico and the US share the same time zone, making it easy for US companies to outsource administrative functions at a low cost.
Why is the Philippines a good location for business?
The Philippines has been the top outsourcing destination to many multinational companies, including but not limited to Google, Microsoft, and Amazon. Here are some of the major reasons why the Philippines is a good location for business:
A large pool of skilled workers
Every year, the country produces over a million university graduates, many of whom enter the BPO industry. It is estimated that more than 1.6 million students will graduate from 200 state-run higher education institutions by 2022.
Competitive salary rates
The Philippines’ average salary of P15,200 was ranked as among the lowest in 110 countries surveyed by Picodi. This is the reason why companies in the United States outsource to the Philippines to cut on labor costs.
Superior English Proficiency
The Philippines is known for having a high proficiency in English, ranking 14th globally with a 92.5% proficiency rate. In a 2020 English proficiency index of 24 Asian countries, it ranked second.
Adaptability to different time zones
Filipino agents can work for their clients on night shifts and even during weekends and holidays. When you outsource to the Philippines, you can get after-hours customer support and 24/7 customer service.
Strong government support
The Philippine government is committed to supporting technical education to prepare future employees for the BPO industry. To further this goal and improve the workforce for IT-BPO positions, the government has established a partnership between the Technical Education and Skills Development Authority (TESDA) and the IBPAP.
Strong affinity with Western culture
The Philippines is known for having a strong affinity with Western culture, particularly in terms of cultural influences such as American cuisine, sports, music, and movies. It is the only country in Asia with such a close connection to the West.
Robust data security policies
The Philippines has passed favorable policies to enhance the data security of its IT-BPO industry. One example is the “Data Privacy Act of 2012”, which protects information from illegal access, bringing the country’s security practices in line with international standards. By outsourcing to the Philippines, you can ensure your data privacy and security are well protected.
Outsource to the Philippines for a 70% Cost-Reduction on Operational Costs
Companies that have successfully outsourced to the Philippines saw faster ROI from their outsourcing initiatives. Not only did they reduce their operational costs by up to 70%, but they also increased their efficiency and freed up internal resources resulting in higher revenue growth. If you want to get your outsourcing journey off to a good start, consider partnering with us!
ManilaPros, a Philippine-based outsourcing company, has been a reliable service provider to global companies in the Ecommerce space. We help businesses scale up their operation with the best teams in customer support, creative design, and product information management.
At a flat monthly rate, you can get on-demand outsourcing services with 100% quality assurance, backup support, and a dedicated account manager.
Contact us today and start building the perfect extension of your team in the Philippines!