Outsourcing is a game changer, especially considering today’s economic climate where minimizing costs and maximizing profits are a priority. Recent trends around the world indicate that global spending on outsourcing could hit $731 billion in 2023, with business process outsourcing projected to grow by over 9% per year between now and 2030. 92% of G2000 companies use IT outsourcing and 37% of small businesses outsource at least one business process. With such a steady rise, it’s no doubt that more and more companies are now seeing the value in outsourcing specific business operations to outside firms. And outsourcing to a top outsourcing destination like the Philippines just doesn’t change the game, it changes lives – especially if the employees are treated fairly, given fair compensation, and are provided with safe working conditions. The best way to do this is to choose a reputable outsourcing provider which places the ethical treatment of employees at the forefront of their business.
Is outsourcing to the Philippines ethical?
Just like any other country, in the Philippines, ethical outsourcing depends on the specific circumstances and practices involved. In general, outsourcing can be ethical if it results in fair compensation and good working conditions for employees, and if it does not exploit workers or harm the local community. In the Philippines, Philippine laws on outsourcing are very important and strict due to the high demand for Philippine-based outsourcing companies over the years. This is to ensure the safety and protection of workers working in the industry. Doing Business in The Philippines highlights how the business process outsourcing industry in the country has many great benefits that include paid holidays and vacations, life insurance, paid sick leave, free beverages, flexible schedule and dress code, the option to telecommute which many employees desire, professional training, and much more.
Why outsource to the Philippines?
Quality of service
As employees, Filipinos always strive to deliver results because they have quality-driven single-mindedness and perseverance like no other. They are also highly trainable, so they can keep up with new tasks and job specifications quickly and effectively. The Philippine workforce is also well-known for the type of resilience that makes them resourceful during times of abrupt changes – a skill you can most likely see at work as resiliency in the Philippines always goes hand in hand with adaptability.
Highly-skilled workforce
The Philippines boasts the most skilled workforce with a huge pool of professionals who are university-educated – hundreds of thousands of university graduates enter the workforce each year with western-influenced training, excellent communication skills, and the unique resourcefulness only Filipinos can deliver. Colliers also adds that the Philippines is considered a top-tier destination for the BPO industry; it is a market leader in terms of voice-related services, and it is rapidly expanding its capacity to provide non-voice Business Process Management (BPM) and IT services like data management, software development and engineering for the expanding list of global clientele.
Government support
According to connectOS, the Philippine economy is one of fastest-growing economies in Southeast Asia. A significant reason why the Philippines maintains this reputation is because the government has invested significantly to position Manila as the leading global provider of outsourcing services and the industry is currently valued at $250 billion. Foreign investment is welcomed and government support is very much alive. The government continues to actively invest in the nation’s infrastructure and technology to support the outsourcing industry. Tax and non-tax incentives are available to support foreign investment.
Filipino core values
Filipinos are naturally resilient, hardworking, resourceful, and eager to learn in the workplace, making them the ultimate staffing choice. Besides the cost-efficient labor costs, where you get access to a multi-talented workforce at such an affordable rate, and the deeply-rooted values they uphold in their personal and professional lives, there is also an unmistakable, genuine sense of cultural compatibility that you can only find in the Philippines.
Reduced legal liabilities
According to MySource, one of the biggest problems in running a business is that you are faced with a lot of paperwork, legal, accounting, financial, human resources, and other related issues during the process. When you outsource to the Philippines, you absolve yourself from these troubles since you reduce legal liability and management issues when they provide you with a strong human resources management team that can help you easily set up training projects and provide the right resources for your employees and the management of your business, especially since Legal Process Outsourcing (LPO) is one of the fastest growing sectors in the Philippine BPO industry.
Timezone neutral
The outsourcing workforce in the Philippines provides 24/7 services. BPO centers have staff working multiple shifts so multiple time zones are covered. The Philippines also has a highly specialized and diverse talent pool with employees who have worked for large multinational and business process outsourcing companies. And considering that the Philippines shares a similar time zone with Australia (the same as Perth and only two hours behind Sydney), this offers plenty of benefits and higher value services for companies Down Under and those further afield looking to expand their 24/7 customer service offering.
BPO track record
The Philippine BPO industry exists as the resilient economic driver of the country with over 11% contribution to national GDP and employing over 1.3 million Filipinos in more than 1000 BPO companies – with that figure growing at an annual rate of 8-10%. According to USource, 27% of the BPO sector’s workforce disperse across the countryside. Emerging and established hubs expect to erect their offices in provincial areas. This means that the BPO industry offers valuable benefits and opportunities to Filipinos for their welfare and the country’s overall economic growth.
Data security and privacy
The Philippine government has passed essential data privacy acts and laws that protect, support and strengthen the outsourcing industry like the Data Privacy Act of 2012 (RA 10173), which seeks to protect all forms of data given, be it personal, private, or sensitive and includes those who, while not found or established in the Philippines, use equipment or maintain an office, branch, or agency in the country, and Republic Act 10844: Department of Information and Communications Technology Act of 2015, which ensures that all businesses in the information and communication fields follow trade and safety laws as it intends to expand the sector while assisting in maintaining the quality of its services, therefore outsourcing your work in the Philippines becomes more convenient.
Cross cultural work experience
Filipinos are known for their excellent work ethic, resiliency, and professionalism. Aside from its rich culture, high literacy and communication, what makes the Philippines an ideal staffing destination is how the country has a strong western influence that makes it easier for foreign investors, particularly the United States, to conduct business operations, especially when understanding tasks, communicating with clients, and interpreting important assigned documents. Entrepreneurs and employees can maximize the fruits of outsourced work better if they can wisely choose which national cultures can go well together, while still respecting each others’ differences. And if you’re still on the lookout for the right culture for your right partner, you should outsource to the Philippines.
Weather and demographics
The Philippines provides an exceptionally high standard of education. Microsourcing cites that more than 680,000 Filipinos complete university each year and with more than 41 million highly trained people in the workforce, the diverse talent pool in the Philippines is so deep and rich that you are guaranteed your business needs will be met. According to the Philippine Statistics Authority, the Philippines currently has over 37 million Filipino millennials, with a median age of 25.7 years old – a demographic familiar with technology and is capable of understanding it to improve businesses. Despite being a tropical archipelago with an average of 20 storms per year, the Philippines also has a workforce capable of handling remote work to maintain business continuity in case of natural disasters.
How much does it cost to outsource to the Philippines?
According to The Scotsman, saving money is the main reason the Philippines continues to be the top outsourcing destination. Outsourcing can reduce the cost of material expenditures such as office space, infrastructure, technology, and other equipment, as these become the BPO provider’s responsibility. In addition to that, companies also save money on employee costs like salaries, health care, and other benefits. All in all, many companies around the world who choose to outsource to the Philippines can save up to 60% on labour and 40-50% on operating costs, savings that can go towards resources that will contribute to healthy and substantial growth. connectOS emphasizes that in the Philippines, the standard pricing model is that they are generally 30% of an equivalent role in Australia or the United States. For every role you have in Australia, you can typically hire three people in the Philippines for the same cost.
What are the risks of outsourcing to the Philippines?
Outsourcing is not for everyone. It’s a complicated effort and some people may find it too difficult to give up control. The challenge in choosing the right outsourcing partner, especially within a third world country, lies in the risk present when you’re not matched up with somebody who has the same culture that your company has. Working with an outsourcing company can feel like trusting strangers with the keys to your own success, but it doesn’t have to be that way. If you want to work effectively with a remote team, trust should be the first thing you establish. The best outsourcing companies in the Philippines not only have technical, creative, and administrative talent and employees that are more than well-equipped to handle all kinds of tasks at a faster rate, but they also have an outstanding reputation that speaks for itself. These will give you and your business the best benefits and rewards.
Frequently asked questions
Is outsourcing legal in the Philippines?
Outsourcing is very much legal in the Philippines. In fact, business process outsourcing accounts for one of the biggest boosts to the Philippines’ economy and currently employs more than 2 million people in several sectors, boasting a net worth of $24 billion. Examples of these sectors include SEO, call centers, online marketing, virtual assistants, IT services, and more. Along with the remittances of 10 million overseas Filipinos, outsourcing is one of the legs of the Philippine economy. The Philippines is among the top outsourcing countries Western countries like the United States outsource to, there really is no doubt that the country has emerged as the world’s largest—and leading—top outsourcing destination.
Why is the Philippines being chosen in outsourcing?
The key reasons why a lot of foreign investors and entrepreneurs find the Philippines so attractive when looking for an outsourcing location are the cost-efficient labor costs, where you get access to a highly-skilled workforce at such an affordable rate, and the deeply-rooted values they uphold in their personal and professional lives – there is an unmistakable, genuine sense of cultural compatibility that you can only find in the Philippines. Outsourcing to the Philippines saves your business from high costs and cultural incompatibility. These factors made the Philippines as the top outsourcing destination for the United States, Australia, Britain, and other parts of Asia, and still counting.
If you’re a business owner looking for the company that’ll help your business achieve even greater heights while ensuring you’re well-informed about ethical outsourcing, you don’t have to sweat looking for the right partner when you can turn to a reliable outsourcing provider like The Outsourcer who can deliver you everything that you’ve been looking for (and more) with their cutting-edge team of Filipino virtual assistants.
The Outsourcer is a game-changer in the Philippine outsourcing industry, having only the best talent for whatever job you need to be done. They will work on continuous training and coaching to give you the best results for your business. Save on recruitment and training expenses, while maintaining successful operations to grow your business by scheduling a free consultation with us today.