The Philippines has emerged as one of the leading outsourcing destinations for US companies. The Philippine workforce has many advantages that make it compatible for outsourcing, especially for US businesses.
Cost-Efficiency
Perhaps the biggest draw for US businesses is the cost savings. Labor costs in the Philippines are around one-third to one-fourth of costs in the US. This allows businesses to significantly cut expenses on functions like customer support, accounting, and software development outsourced to the Philippines. The average annual salary of a call center agent in the Philippines is $7,800 compared to $37,500 for an agent in the US.
Abundant English Speakers
An estimated 95% of the Philippine population can speak fluent English due to the country’s colonial history under the US and UK. The quality of English proficiency rival Western standards making the Philippine workers ready to take over job functions requiring communication in English. This eliminates the language barrier issues common with outsourcing to non-English speaking countries.
Educated and Tech-Savvy Workforce
The Philippines has a relatively young and educated workforce. Over 80% of the Philippine population is under the age of 50 and around 77% over the age of 15 are literate. The country produces over a million college graduates annually, providing a ready talent pool of skilled workers for outsourcing roles in fields like software development, engineering and accounting.
Pro-Business Environment and Infrastructure
The Philippine government has put in place policies and infrastructure to promote the outsourcing and business process management (BPM) sectors. The country’s Special Economic Zones provide tax incentives for BPM companies and the DOLE Department of Labor and Employment has programs to ensure a stable flow of workers for the outsourcing industry. The infrastructure for outsourcing like office spaces, internet connectivity and telecom services are continuously being improved.
Rocky Chan is a lawyer and business consultant who excels in corporate formation, immigration procedures, and client relations. In the last 7 years, he honed his craft in the field of foreign investment consultancy.
