Why Outsourcing in the Philippines is Booming

Business process outsourcing in the Philippines has always been a booming industry, at one point 2011 found by a New York Times report to have overtaken the much larger Indian outsourcing industry in terms of growth. After continued growth through the years, the Philippines’ outsourcing industry now sits comfortably at the second top spot despite strong competition from other emerging markets. There main reason the Philippines’ outsourcing service industry is booming is because investors flock to the country because of a few benefits, such as:

An English-Speaking Population and Familiarity with Western Culture

With over 30 years of American colonial rule and a culture that has since assimilated western influences, The Philippines is home to a population that can speak and understand English comfortably, with accents that are much lighter than other neighboring countries’.

This means it is much easier to train Filipinos how to converse in native English, which in turn makes it easier for them to provide virtual help to Western clients and customers. Their close familiarity with Western culture makes these workers easier to relate to and converse with, because they understand the nuances of the language and the social customs of their customers.

A Relatively Younger, Educated Workforce

The workforce in the Philippines has a median age of 24 years old, which means a fresh supply of talent that is more willing to stay longer in a company, with less distractions and health issues that could affect work performance or interfere with duties.

An Emphasis on IT and Engineering Education

While the outsourcing industry consists of a wide range of employment opportunities that require different skill sets and educational backgrounds, the most important positions tend to be ones that require an education on Information Technology and Engineering, and it is in that demand that the Philippines has ample supply.

The country’s Commission on Higher Education (CHED) puts the number of IT and Engineering graduates at 68,178 and 61,786 in 2014 alone, which means there are almost 130,000 qualified fresh graduates able to take jobs in the outsourcing field. Add the number of potential workers from different fields yet willing to work as experienced and highly skilled virtual assistants and you have a country with the ability to provide skilled manpower regardless of volume needed.

Cost Efficient Labor

One of the key advantages of outsourcing is the savings a company will incur on cheaper labor. The Philippines has the advantage because the local currency is significantly weaker than the Euro and the American dollar, coupled with the lower cost of living means that companies have access to cheap labor without resorting to sweatshop wages. With the skills of Filipinos being competitive with other countries it is no surprise that the industry is booming, because BPO companies in the Philippines are able to minimize expenses while still offering world-class quality of service.

This means that as a business owner you will be able to afford expert and skilled virtual assistants to grow your business in any economy. 

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