5 Reasons to Outsource to the Philippines

5 Reasons to Outsource to the Philippines

The main reason why companies outsource to the Philippines is to support business growth as they improve on their own processes, allowing for more streamlined procedures.

Outsourcing these essential services has proven a popular choice for numerous organizations looking for extra support and coverage. In 2021 alone, business process outsourcing in the United States was expected to produce $113 billion in revenue (according to Statista).

To increase efficiencies, more businesses are turning to offshoring as a logical way to reduce overhead costs and still obtain exceptional value in the deliverables. While there are plenty of benefits in domestically outsourcing services to a third party within the United States, many organizations have found critical success in other countries. One such popular choice is the Philippines, known for its hard-working, talented workforce and cultural compatibility.

Reasons Why Companies Choose To Outsource

Before we dive into the reasons to outsource specifically to the Philippines, it’s essential to understand why companies choose to outsource in the first place.

• Control of overhead costs – Control over the budget is a significant perk of outsourcing to a third party, whether domestically or globally. While there are always unexpected costs due to unforeseen circumstances, a company must always consider the total cost of hiring multiple professionals that satisfy the business need. For example, let’s take the CEO of a rising company that specializes in biotechnology. After meeting with leadership, the total cost of manufacturing specialized machinery and technology in-house is costing the company significantly. Additionally, the specific machines being used require individuals with a particular level of expertise that may not be as common in the market. But the company is looking to grow and will need to factor in the cost of recruiting, hiring, and training the right employees. Not to mention they may require a team of customer service experts that can be available for support. If the company is looking to cut costs where appropriate, outsourcing may be the best option. On average, a small business is expected to spend upwards of $250,000 per year for an employee’s salary.
• Flexibility to scale up or down – Outsourcing also gives the organization the ability to scale up or down depending on their unique circumstances. To scale up gives the company a competitive edge, allowing for strategic expansion and thoughtful organization, and advancements for the core team. With instant expertise from a third party, the growth of the company is accelerated, increasing the number of business possibilities. If, however, a company is in the midst of slowing down or going through restructure or rebranding, having some of the essential business services outsourced could be easier to hold or terminate rather than going through the different, nuanced processes in Human Resources when it comes to the impact scaling down will have on its employees. Ultimately, outsourcing gives a company the flexibility to grow at its own pace and to keep up with the ever-changing flow of the market and its demands.
  
• Improve Team Focus – Company’s work towards their own true goal: their mission. It’s about who they serve and the means by which they deliver the best quality deliverables for their clients. Quickly expanding the company can be a drain on existing resources, such as employee time spent in training or the cost of recruitment efforts. By outsourcing basic operating procedures to a third party, it allows a team to return to the mission and meet its objectives. They are able to focus on their essential functions, capitalizing on their skills in order to deliver their best work in a consistent and reliable manner. While they can occasionally act as an additional layer of support for any complicated or specialized questions that the third party may encounter, the core team is virtually free to concentrate on the tasks at hand.
• Gain fresh expertise – Outsourcing to a third party allows a company to tap into a wider talent pool with a diverse range of skills and experience. Sometimes, it’s easy for the core team to concentrate solely on their objectives and rely on tried-and-true methods to carry them across the finish line. But if a company is looking to expand, using a third party can potentially bring new ideas and insights to the table. Oftentimes, third parties work with multiple clients from around the world, which helps with the exchange of ideas and collaboration in general. Outsourcing globally can also create opportunities to tap into a talent market that has focused training, certifications, and education in a specialized field, making the skilled workforce in other countries particularly competitive.
• Increase productivity – Outsourcing is a way in which businesses streamline their internal processes. This is especially helpful for startups going through growing pains and their resources are stretched thin. For periods of rapid growth, outsourcing to a third party can give you the opportunity to add more talent to your team, creating more resources, and increasing overall productivity. For example, if a call center has a particularly high call volume in the early afternoon, outsourcing to a third party such as the Philippines can allow for more personnel on the floor to help with the volume of calls coming in without further overwhelming the existing employees.
• Better customer experience – Outsourcing can certainly help a business to improve its overall customer experience and interactions. To avoid slow response times or avoid catastrophic technical problems on their website that can affect how a customer interacts with (and views) the business, outsourcing essential services like a customer service call line or website maintenance can all help boost the company’s reputation and internally satisfy the needs the company has in order to operate effectively. Even if it seems like a small piece of the whole operation that doesn’t seem as pressing or as relevant, outsourcing these essential services can help optimize the entire way you do business.

Generally, these are the most vital reasons as to why companies would choose to outsource their essential business services. Ultimately depends on the company’s desire to grow. To expand, businesses require the right talent, and sometimes that means looking abroad. As the Philippines rises in popularity and reputation for being one of the most efficient countries in the outsourcing market, more businesses are attracted to the vast array of reasons why the Philippines should be among one of their top destinations for their needs.

Reasons to Outsource to the Philippines #1: English is their second official language

While outsourcing can come with a wide array of benefits, one of the many challenges – especially if done globally – is the language barrier. Understandably, it takes time, patience, and compassion to avoid any breakdowns in communication. The Philippines has a long and storied relationship with the United States as one of the US’s oldest Asian allies. English is their official second language and is regularly spoken in conversation and an undeniable presence in their media and other forms of publication. Their familiarity with the language, and sometimes lack of an accent, make the Philippines truly attractive and competitive to companies looking for additional support without too much of a language barrier. However, an important consideration that companies must take is this: while familiarity with the English language (both verbal and written) is an extremely vital factor, it’s also about cultural compatibility and knowledge that completes the whole package. It’s about how cross-cultural teams work together to deliver high-quality services and their understanding of one another.

Reasons to Outsource to the Philippines #2: Cultural compatibility

This leads directly to another reason why companies should seriously consider outsourcing to the Philippines: cultural compatibility. While their culture is unique and vibrant, much of its shape has been formed from western influences such as the United States and Spain. So what does this mean for businesses looking to outsource abroad?

The Philippine culture is deeply religious and family-based, two values that are easily relatable. Filipinos are warm, generous, and hospitable, prioritizing relationships and experience. As many foreign visitors have noted, they are treated with the utmost respect and courtesy in all aspects of their time spent in the country, something that also comes across in a business setting.

While the education system and language are certainly contributing factors, Filipinos are easily able to communicate with professionals from the United States, often being able to relate to the latest trends and making small talk that both parties can appreciate.

Reasons to Outsource to the Philippines #3: Unparalleled work ethic

Filipinos are highly respectful, a cultural trait shared among Asian countries. Respect is extremely important, especially when it comes to their elders and individuals in higher authority. Filipinos make sure to speak with politeness and integrity, which translates into their work ethic. The positive energy that the Filipino workforce brings also contributes well to a positive work environment, as they remain calm and collected even in stressful situations. Much of their success in the outsourcing market is derived from their ability to work hard under deadlines, easily transition into the company’s work structure, and their ability to excel in service-oriented processes.

Filipinos are also adaptable and resourceful. Part of this stems from the country’s weather conditions where they are heavily prone to natural disasters such as earthquakes or floods. Being adaptable and resilient under these circumstances is part of Filipino culture and part of their day-to-day life. This translates into the workplace as well, leaning into their strengths to build long-term solutions and prevention measures to keep mistakes from recurring and maintain efficient processes.

Filipinos are also known for their responsibility. Their talented workforce has a positive reputation for taking ownership and accountability for their work. This means they are among the most reliable on the team, taking pride in all that they do to deliver exceptional work, either meeting or exceeding expectations. Their eagerness to learn and continuously grow means they don’t shy away from opportunities to expand their knowledge base. Filipinos are motivated and willing to learn what they need in order to set themselves apart in the industry.

Reasons to Outsource to the Philippines #4: High-quality services

The Philippines currently ranks at number 3 among Asian nations in English proficiency. Not only that, the Philippine government not only supports the business outsourcing processes in general but also actively encourages participation in higher learning and education, making the Filipino workforce highly competitive in the outsourcing market. Their tendency to strive for a high level of service in each and everything they do naturally produces high-quality results that can’t be ignored.

Reasons to Outsource to the Philippines #5: Supportive working sector

Over the last several years, the Philippines has experienced a boom in its real estate sector, which has positively impacted the growth of its economy. According to Amro, 42% of the office space in Manila – one of the country’s biggest metropolitan cities – is occupied by the business processing industry. While the main form of transportation continues to be road-based modes, an expanding real estate sector means improved transportation, efficiently shepherding a number of workers to their intended destinations.