Business

Why outsourcing to the Philippines works and makes good business sense

Why outsourcing to the Philippines works and makes good business sense

The Philippines is often considered the golden child of call centre outsourcing, and there are many reasons why it is a popular choice among companies, and why outsourcing your BPO requirements to the Philippines makes the best business sense for your company, regardless of your niche. The Philippines houses more calls centres for international companies than almost any other country in the world. But what makes it so popular, and why is it a BPO’s dream?

As with any major business decision, the first key factor is the cost to the business. The cost of living is low in the Philippines, making workers’ wages more affordable for businesses. Not only that, but to encourage business, the Filipino government has been backing a scheme since the 1990s to encourage the BPO industry specifically – handing out tax breaks and exemptions to businesses who chose to outsource there, and laws such as the Data Privacy Act, which allows companies more freedom in expanding their business operations while also taking on high numbers of new clients, all while continuing their outsourcing in the Philippines.

The government support means that companies can rest safe in the knowledge that they have safety and support in choosing the Philippines as the perfect place for their contact centres. While the unique financial situation of BPOs in the Philippines makes good business sense for those looking to outsource their call centres, there are other reasons why it is such a good choice and works so well for many companies.

The high level of education amongst the Filipino population, coupled with the excellent communication skills of many and a good knowledge of Western culture makes outsourcing to the Philippines work as well as it does – especially as so many of the BPO companies in the Philippines are headquartered in countries such as the USA, UK, Australia, and Europe.

Filipino call centre workers are well-respected within the industry, and there is typically trustworthiness and reassurance presented – knowledge that workers are reliable and will get work done as required to a high professional standard.

The western influence has also resulted in near fluency in English for many Filipinos, often with a neutral accent that does not mark them out as being anything other than native English speakers, a factor that probably improves business for these BPOs, despite questions of prejudice and discrimination that such a situation may induce. Western-based respondents to calls are typically more receptive to those that they believe have native or at least accent less English proficiency, increasing profits for BPO outsourcing in the Philippines.

Although these are only some of the reasons why the Philippines is so sought after as a base for contact centre outsourcing, they are the key reasons to understanding why outsourcing to the Philippines makes good business sense and why and how it works – in a business, profit, economic and staffing level. As the demand for BPO outsourcing in the Philippines only continues to grow, it is clear to see that many believe in the country’s success and that the industry is having an impact on both the country and the rest of the world at large.

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