With the increasing rate of expenditures required when operating a business, companies continuously seek for venues where they can cut cost—this is where business process outsourcing (BPO) comes in. By delegating certain functions and administrative tasks to an offshore staff, companies are able to pursue cost efficient operations while still maintaining high quality service to its customers.
In the Asian region, the Philippines remains as a forerunner in the BPO industry, displaying a consistent fast-paced growth. In a few years alone, the Philippines was able to make it to the top list of the most preferred BPO destinations globally.
Why do foreign businesses continuously invest their business operations in the Philippines? Well, it’s because of these several undeniable benefits that their company can enjoy:
- Cost Competitive Advantage with High Quality Service
As an Asian country, expenses in the Philippines are significantly lower in comparison with western nations. At a fraction of a cost, businesses can expect high quality service without having to spend so much on expensive infrastructure, equipment, office rentals, recruitment, and legal costs. BPO firms will handle these for you.
The Philippines’ low Consumer Price Index (CPI) for food, transportation, and utilities, also offer significant advantages compared to its other Asian neighbours. More importantly, the daily minimum wage in the Philippines is just around $9 or £6.45 per day. In less than $500 or £300 per month, a company can already employ a qualified competent individual from a reputable university to help with your business.
With a low CPI and operational expenses, along with a truly competitive salary rate, foreign businesses can surely incur a lot of savings by investing in the Philippines.
- Operational Efficiency with a Highly Skilled Workforce
Multinational companies have already put their trust in the Filipinos and this is not only because of the low business cost that the country offers. What makes the Philippines a premium destination for BPO operations is its consistent delivery of superior service offered by its highly competitive workforce. With a literacy rate of 97.5% based on a 2010 national census and the production of approximately 450,000 tertiary graduates annually, the quality of Philippines’ workforce is one of the highest globally.
The flexibility of Filipino employees is also regarded highly worldwide. For its BPO industry, its major strengths include the call center sector with voice and non-voice support; IT helpdesk; legal and medical transcription; finance, logistics, and accounting; recruitment; and software development and animation.
- Language and Cultural Compatibility
A country rich with American and Spanish influence, the Philippines embraces the Western culture. Both in the education and business sectors, English is considered the primary language; enabling the Filipinos to develop an impeccable proficiency of the English language. From business operations down to the working schedule and even with the required accents and languages, the Philippines can surely accommodate the working environment that you need.
- Business Incentives and Robust Government Support
The influx of BPO firms provide mutual benefit both for the country and foreign businesses—encouraging the Philippine government to be very supportive of it. In fact, the country’s legal regulatory framework and financial reporting policies are based on the American guidelines. In 1995, over two decades ago, the country has also established the Special Economic Zone for local and foreign enterprises.
Additional business incentives that foreign companies can enjoy in the Philippines are exemptions on local taxes and permits, permanent residence for foreign investors and their families, duty-free import of capital equipment, and exemption from corporate income tax for four years, that could be extended to eight years.
With a local government that is at full support of the industry and a talent pool of highly skilled professionals, outsourcing in the Philippines is definitely the best decision you can do today!