As an outsourcing destination, the Philippines has numerous compelling advantages to offer.
The Philippines is an emerging outsourcing destination with a young robust workforce made up of English-speaking university graduates, a closer cultural alignment to Australia compared to other Asian countries, and favourable time zones, among other things.
1) Up to 80% lower wages bill. Hiring an experienced customer service agent with excellent English skills will cost you less than A$600 per month in the Philippines, and this includes all benefits and government contributions. When hiring employees in Australia, not only are you paying between 60 – 80% more in salary costs, you are also paying superannuation, workers comp, annual leave loading, payroll tax, and, potentially, car and phone allowances.
2) Massively reduced overhead costs. In the Philippines, the savings you make on wages are further compounded when you consider how current building and infrastructure costs can be reduced, such as office set up, I.T. infrastructure including computers, telecommunications, and insurances, etc. These costs run into hundreds of thousands of dollars and can disappear or be greatly reduced as a result of outsourcing.
3) English proficiency.Aside from the national language, Filipino, the Philippines also counts English an official language. Filipinos learn English at school from primary school to university and most of the population is proficient in the language. English is widely used in day-to-day activities, especially in the business sector.
4) High percentage of university graduates. Filipinos have an extremely high regard for education, especially Filipino parents, who consider it to be the most important gift they can pass on to their children. Education is also regarded as a key to achieving professional success. Due to the stiff competition in local employment, most parents strive to send their children to uni to give them an edge. According to the Philippine’s Commission on Higher Education (CHED), in year 2013 alone, more than three million Filipinos enrolled in various colleges and universities in the country. These students are expected to graduate in 2017.
5) Government support for the industry. The outsourcing industry is recognised as one of the great contributors to the economic growth that the Philippines has been enjoying in recent years. As a result, the Philippine government strives to push forth policies and initiatives that provide support for the industry, such as improvements in infrastructure, government incentives, and tax exemptions for investors.
6) Cultural affinity with the West. The Philippines was under US rule for almost 50 years. The introduction of the public school system and the English language during American rule resulted in the Philippines having a higher familiarity and adaptability with ‘Western’ culture compared to other offshore destinations in Asia.