The outsourcing industry is continuously booming in many countries all over the world and the Philippines is no exception.
If you are looking for a reliable partner that can help you set up call centers, you should consider outsourcing your call center services to the Philippines. The Philippines is known for its advanced IT infrastructure and highly skilled workforce, making it a great option for companies looking to expand their business in the region. The country’s colonial past has resulted in impressive skills in the English language. This makes it easier for you to train your employees and manage your call center operations.
Aside from outsourcing, many companies also consider offshoring their services in the Philippines. Continue reading to learn more about offshoring and the top reasons why the Philippines could be a perfect offshore destination for your business.
What is offshoring?
Offshoring is a strategy under outsourcing. It is the process of relocating business processes or entire businesses to another country. Software development, financial processing, and IT services are just a few of the most common business activities that companies do offshore.
How is offshoring different from outsourcing?
To understand the differences between the two, take note first of the similarities. Outsourcing and offshoring are two setups where companies choose third-party agencies and firms outside the company premises to perform specific tasks with the help of competent manpower. Just like outsourcing, companies usually offshore to minimize operational and overhead costs, and at the same time, focus on the core business activities.
One key difference between the two is that outsourcing usually entails contracting out specific tasks or projects, while offshoring often involves relocating entire business operations.
Another distinction is that outsourcing can be done within the same country (i.e., domestic outsourcing), while offshoring always involves moving operations to a different country (i.e., offshore outsourcing).
The differences between these two revolve around different aspects such as work assignments, timeline, involvement, work quality, and time and scalability.
What are the benefits of offshoring?
Here are some of the benefits that you can enjoy when you choose to offshore your business activities:
- Cost Reduction
- Better Quality and Performance Control
- Cost-Effective and Skilled Manpower
- 24/7 Operations
- Full Assistance
Read more: Outsourcing vs Offshoring: Know the Key Difference and Find Out What’s Right for Your Business
Reasons Why the Philippines is the Perfect Offshoring Destination for Companies
1. Cost Savings
Just like outsourcing business activities, companies that offshore their operations and services also enjoy the cost benefits that service providers offer. International companies invest in outsourcing and offshoring their services to cut labor costs and make the company more scalable.
In offshoring, your service provider will be in charge of hiring agents who will be working in your offshore team. The expenses involved in recruitment, hiring process, and training are more affordable in the Philippines because of the lower cost of living that Filipinos have, compared to other countries. A lower cost of living also means lower average salaries and bigger funds to invest in monitoring projects or purchasing new equipment that your in-house teams need.
You get to serve your clients and connect with them 24/7 without paying so much. Offshoring call centers in the Philippines only costs $6 to $14 per hour. Check the brief pricing comparison of offshore call Center costs per location:
| Country / Region | Cost per hour |
| United States / Canada | $22 – $40 |
| Western Europe | $42 up |
| Eastern Europe | $12 – $25 |
| Australia | $35 – $50 |
| Africa / Middle East | $16 – $20 |
| Latin America | $8 – $20 |
| Asia / Philippines | $6 – $14 |
| India | $5 – $12 |
| Pakistan | $6 to $12 |
As you can see, there are countries in Asia Pacific that offer affordable offshoring rates, but there are plenty of reasons why this gem in Southeast Asia is the perfect offshore destination for your business.
2. English Language Skills
If you are worried about language barriers and communication with your clients, but you are also aiming for cost savings, then the Philippines is the perfect offshoring spot for you. Aside from the low cost of labor, every talent pool in the Philippines is made of staff with superb communication skills in English. Since Philippine provinces were once colonized, each province in the archipelago speaks several official languages and dialects, with English being one of their known expertise. Cebu City is one of the many cities in the country where natives can speak English fluently.
3. Cross-Cultural Teams? No problem!
Culture fit is an essential part of outsourcing and offshoring business operations and if you choose to offshore in the Philippines, this is not a problem. Filipino teams in BPO companies are known to be competitive yet friendly, so effort and camaraderie go well together. It is a part of the Filipino culture to be accommodating and respectful of foreigners and Western cultures, so your in-house team won’t have any issues communicating and collaborating with your remote team.
This amazing work ethic helped Filipino teams have productive, meaningful, and long-lasting relationships with their clients.
4. High Productivity Rates
Filipinos are hard workers, and fast-paced companies need productive individuals to form a solid team. Filipino teams are capable of working under pressure and challenging conditions, and they don’t mind interacting with a wider talent pool to get the job done. They always exceed expectations in working on projects and resolving the concerns of clients. On top of that, they are also resilient and can work in flexible time shifts and schedules, which brings us to the next reason.
5. Flexibility
If you are a business owner with a company operating in Western countries and regions, having a reliable team who can perform different tasks 24/7 despite time zone differences is a must. Even in service crew positions in fast food restaurants, you can meet staff working in rotating shifts and late business hours: in the morning, afternoon, and even late in the evening. Filipinos can work in different time zones without compromising the quality of their outputs. With this, foreign companies are seeking the help of Philippine outsourcing companies in forming cross-cultural teams with experience in customer service.
6. Customer Service
Friendly, warm, and hospitable. These are just three things that you could think of when the Philippines is mentioned. Filipinos are known for their amazing work ethic focusing on empathy and respect. They make good customer service professionals and agents, and they are always expected to deliver quality service and establish valuable relationships with their clients, colleagues, and other stakeholders.
7. Skills
Filipino teams in the BPO industry are made of top-caliber talents. And when we talk about top-caliber talents, Filipinos are not limited to English proficiency and communicating in official languages and dialects. Companies like Accenture and Digital Minds BPO hire the best skilled agents and project managers with adept knowledge in different fields.
Aside from hiring graduates from prestigious and reputable universities, they also recruit experienced professionals in different categories of industries like banking institutions and tech companies to work under financial services and payroll services, and IT-related services. With a relatively low cost of labor and training, you can optimize your business operations with the help of your offshore staff. You may actually set your own recruitment and selection guidelines before signing an agreement so that you can ensure that your service and skills standards for employees will be followed.
8. Government Support
For any type of business to prosper, support from the state is crucial. The BPO industry in the Philippines is booming, thanks to the strong support that they get from government authorities. The Filipino Government is determined to keep the country’s reputation as an outsourcing haven and prioritizes several efforts to promote the importance of information and communications technology in society.
In fact, there are four laws that support ICT in the country, so you can be certain that your Filipino workers will be enjoying all the benefits that your company can provide.
9. Economic Resilience
While hundreds and thousands of businesses in the Philippines closed during the surge of the Covid-19 pandemic, call center workers remained untouchable. It could be their strong work ethic or cultural traits, or both, but Filipino BPO employees are always given lots of work arrangement options to perform their tasks even during the height of natural disasters and health emergencies. They also enjoy government tax benefits that allow them to save money and do their duties in the safest way possible.
Matched with the support of the Filipino government, BPO employees are given comprehensive health benefits and incentives to make sure that they can provide quality services to foreign clients even in the comforts of their home. Choosing the Philippines as your destination for offshore business activities is a practical decision since the growth of your company will be continuous, and your income will always be anticipated, whenever and wherever.
10. Infrastructure and Technology
With over 700 BPO companies across the archipelago, the country is slowly becoming a technology hub that features new and competitive infrastructures perfect for different call center services. As the most industrialized area in the Philippines, the capital city of Manila is a center of foreign investments and job opportunities for BPO services professionals. Don’t worry about starting your offshore team from scratch: hiring teams and getting the best office spaces and arrangements for them is easier in the Philippines.
Helpful Tips for Smooth Offshoring in the Philippines
Define what work you want to offshore.
The first step in choosing an offshoring company and an offshore destination is to clearly define the work you want to offshore. This will help you narrow down your options and find a company that specializes in the type of work you need.
Consider the cost.
The cost of offshoring can be a significant factor in deciding whether to offshore. When considering the cost, it is important to consider both the short-term and long-term costs. The short-term cost of offshoring is typically the initial investment required to set up the arrangement. This can include costs such as training for staff who will be working with the offshoring company, and any necessary equipment or software.
The long-term cost of offshoring is typically the ongoing cost of paying for the services of the company. This can include costs such as monthly fees and any additional costs that may be incurred if the arrangement needs to be changed or ended.
Weigh the Risks.
Weighing the risks is an important step in deciding whether to offshore. While there are many potential benefits to offshoring, there are also some risks that should be considered. These risks can include quality control issues, communication problems, and cultural differences.
When offshoring in the Philippines, businesses should carefully consider these risks and weigh them against the potential benefits. By understanding the risks involved, businesses can make informed decisions about whether offshoring is right for them.
Compare the benefits
Offshoring can offer the parent company a number of advantages, including cost reduction, access to experienced and talented professionals from around the world, and the ability to focus on core business functions while taking advantage of the latest technology and trends. However, it is important to compare the potential benefits of offshoring against the potential disadvantages before making a decision. Some of its potential disadvantages include risks associated with loss of control, decreased transparency, and poorer overall project management.
Consider the impact on your company culture.
When you offshore a business function, it’s important to consider how that will impact your company culture. If the function that you want to offshore is central to your company’s identity or values, it can be difficult to maintain those same standards when working with an outside vendor.
Offshoring can have a significant impact on your company culture, depending on how it’s managed. Employees may have a different culture and work ethic than in-house employees, and this could lead to confusion and miscommunication. It’s important for your employees to get exposure to the remote team, so they can understand its culture and work ethic.
Make sure you have a clear understanding of your company’s goals.
It is important to make sure that you have a clear understanding of your company’s goals when choosing an outsourcing company. You will want to be sure that the company you select is able to help you achieve your desired outcomes. The last thing you want is to end up with a company that does not understand your goals or is unable to help you reach them. Additionally, defining your business strategy and company structure is essential to ensuring a successful offshoring experience.
Set your goals and expectations with a definite time frame in mind. This will help you to avoid any misunderstandings or disagreements that could occur down the road.
Do your research.
Research is critical when choosing an offshoring company in the Philippines. You need to make sure that the company you select is reputable and has a good track record. There are a number of ways to research offshore companies. You can start by asking for referrals from businesses that have used offshoring services in the past. You can also search online for reviews of offshore companies. Check reviews and feedback from existing and past partners and clients.
Check if the vendor’s office tools and technology are updated and can help streamline your business process. Also, ask if they have any certifications or affiliations that can add value to your business. International companies prefer foreign companies with impressive track records that will put their business in a good light.
Set up productivity software.
If you are offshoring, set up reliable communication channels like instant messaging and video calling to ensure that objectives are met and there will be no bottleneck situations in the future. You may also want to try project management tools such as Basecamp and Jira to help in monitoring project progress, and employee productivity management tools to check and evaluate employee performance. Time tracking software like Trackabi and Time Doctor are also helpful in monitoring productivity.
Frequently Asked Questions
What services can you offshore?
From basic tasks to complex tasks, offshoring can help you save costs and strengthen the core activities of your company. Here are some of the most common tasks that business owners and foreign investors offshore:
- Specialized IT Services
- Drafting and Estimation
- Accounting and Bookkeeping
- Digital Marketing
- Data Entry
- Virtual Assistance / Admin Services
- Executive Coaching / Sales Coaching
- Human Resource Management (a Filipino HR is a good HR!)
- Recruitment
- Customer Service
How much is the annual salary of a BPO professional in the Philippines?
The average annual salary of BPO workers in the Philippines is 183,000 pesos. Average salaries vary depending on the location and minimum wage policies mandated by the local government. Major business cities can offer higher salary packages and benefits.
What industry outsources their activities the most?
Accounting is the industry that outsources its activities and business operations the most. Foreign businesses usually tap the help of business process outsourcing companies in the Philippines to perform accounting tasks during and beyond their business hours.
Takeaways
Hiring talents from offshore companies to help you improve customer service operations and other significant tasks is a practical step and approach to strengthening the core operations of your business. Filipino teams are highly capable of working despite time zone differences, and you don’t have to worry about language barriers since they are good communicators.
You may choose to choose an offshore company based in capital cities for more advanced equipment or technology, but if you value quality over quantity, you can save more by sealing a partnership with companies based in untouched cities. Getting the best team to work with you and your in-house team is an important investment that you must consider.
Are you ready to serve your foreign clients 24/7? See your company’s growth rate increase with the help of an all-Filipino offshore team!
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