When you want to cut costs, improve efficiency and focus more on your core business, offshoring is naturally an attractive option.
But not all countries are equally suitable.
Although cost savings are important, there’s a lot more to successful offshoring than that. You have to consider a range of other issues, including culture, work ethic, economic climate, government support, education levels of the talent pool.
All things considered, the Philippines ticks more boxes than any other offshoring location. Here are just 10 reasons why…
1. You get amazing value for money
Naturally, the main reason businesses want to offshore is because the cost of labor at home is prohibitively high. With offshoring, you can scale faster, cut costs and boost profits. If you look at the cost of living in the Philippines, it’s far less than what it costs in Australia, the US or Europe. That means you can pay someone a good wage for much less than you’d need to pay at home – up to 70% less, in fact.
2. They’re easy to talk to
Communication is key when integrating an offshore team, and the fewer language barriers, the better. Fortunately, you’ll find your Filipino team members easy to talk to. English is the official local language (alongside Filipino), making the Philippines the third-largest English speaking country in the world. And unlike other popular offshoring destinations, the Filipino accent sounds familiar and is easy to understand, which explains why call centers are so popular in the Philippines.
3. Your team will get along just fine
Offshoring to a country with good cultural fit helps your onshore and offshore teams communicate effectively, minimize potential misunderstandings and achieve outcomes faster. While most other top offshoring destinations fall short in this area, the Philippines is an excellent cultural fit for Australian, American, European and Canadian companies.
4. They work hard
If you’ve had bad experiences with outsourcing in the past, you might be worried about getting taken advantage of by your remote team. After all, you can’t see them and you’re not physically there to make sure the work is getting done. But that’s not an issue in Filipino offshore teams, especially with good management. Filipinos are renowned for their amazing work ethic and are eager to demonstrate their productivity. They’ll at least match, if not exceed your onshore team’s dedication.
5. Customer service is top notch
It’s likely that one of the key roles tying up your local team is customer service – it’s time consuming (read: expensive) and difficult to retain good staff. But when you offshore to the right destination, that stops being an issue for your business. Filipinos aren’t just amazing at customer service, they genuinely love doing it. Their manner is extremely warm, friendly and empathetic. Combined with their excellent communication skills, they’re great at talking on the phone, managing your online community or running your online chat.
6. Economic climate and government support are strong
Many popular offshore destinations offer great value for money, but add risk to your business with an unstable local government and economy. However, the Filipino government is stable and the economy is strong. They welcome foreign investment and actively invest back in their infrastructure and technology to support the outsourcing industry.
7. They’ll work during your business hours
A good offshore provider will be able to build a team for you that can work the same business hours as you, no matter what your time zone. This means you can offer prompt, reliable business-hours customer service, and if your offshore team works closely with your onshore team, there’ll be no inconvenient and frustrating delays to make things difficult.
8. They’ve got the tech
Remote teams and employees need good technology and infrastructure to do their jobs. But this is where so many other offshore destinations fall short. In major Philippine cities, like Manila, the infrastructure is very similar to major world cities like Sydney, Australia.
9. You need the talent
Offshoring isn’t just for saving money. It’s also about harnessing talent you can’t necessarily find in your local market (or on a large scale). The Philippines has a highly educated, diverse talent pool. In 2017-2018, over 700,000 students graduated from universities in the Philippines. With so many people ready to work, we’ve built a database of 200,000+ screened candidates with training and experience in customer service, finance, HR, design, animation, development, and marketing (and specialties within each of those disciplines).
10. They’re experienced
The Philippines has been a top offshoring destination since the early 2000s, although its first contact center which was established back in 1992. According to surveys by the Philippine Statistics Authority, Business Process Management (BPM), this sector alone employed 449,964 people in 2013 (and this is just one offshore sector). So it’s safe to say, they know what they’re doing when it comes to working with overseas companies.
Learn more about offshoring to the Philippines
Want to build a dedicated offshore team?
Since starting in 2006, MicroSourcing has become one of the biggest managed operations providers in the Philippines. With over 4,000 employees, 7 delivery centers and close to 200 clients, we can help you build a dedicated team in the Philippines, regardless of the roles and level of specialization you require. Contact Us today and you’ll have your offshore team up and running in as little as 6 weeks.