The offshore outsourcing industry in the Philippines started in the late 1990s. Back then, the country was only servicing western businesses\u2019 customer service functions through call centers. Various multinational BPO companies like Sykes, Teletech, and Convergys then set foot in the country, paving the way for a successful and profitable partnership between Philippine BPO firms and Western companies.<\/p>\n\n\n\n
Other countries aside from the Philippines have also made names for themselves as top offshoring destinations in the world. Some of these include India, China, Indonesia, South Africa, Poland, and Malaysia. However, the Philippines remained as the leading offshoring destination over the decades.<\/p>\n\n\n\n
Pros and cons of offshore outsourcing<\/h2>\n\n\n\n![\"\"](\"https:\/\/sixelevenbpo.com\/wp-content\/uploads\/2020\/11\/Untitled-design-55.png\")
<\/figure>\n\n\n\nEvery decision, every business strategy, and every option has its pros and cons. Take a look at the advantages and disadvantages of offshoring in the Philippines:<\/p>\n\n\n\n
Pros of offshore outsourcing<\/strong><\/p>\n\n\n\n- Businesses can save 50% to 70% on employment costs.<\/li>
- Employers wouldn\u2019t need to worry about providing work equipment, office supplies, office space, parking space, training costs, internet connectivity, and other expenses that go with in-house hiring.<\/li>
- Filipinos have an advantage compared to other offshore destinations when it comes to English proficiency and neutral accents. Since the Philippines use English almost as a native tongue, Filipinos have no problem communicating in the language.<\/li>
- Various Philippine BPO companies cater to businesses of all sizes. Whether you\u2019re a solopreneur, a small or medium-sized business owner, or an executive at a large corporation, outsourcing firms can provide affordable, flexible, and scalable solutions perfectly suited for your business model.<\/li><\/ul>\n\n\n\n
Cons of offshore outsourcing<\/strong><\/p>\n\n\n\n- There are untrustworthy and \u201cbogus\u201d BPO service providers. They are not legally registered and can offer much \u201caffordable\u201d staffing. While this may seem tempting, these companies may not provide quality outputs and services. They may also possibly charge hidden fees that are difficult to get out of. Do your research before talking to any BPO company.<\/li>
- Some companies are concerned about different time zones. However, the BPO industry is very much alive at night to service Western companies who are just about to start their work day.<\/li><\/ul>\n\n\n\n
Why offshoring in the Philippines may be the best strategy for your business<\/h2>\n\n\n\n
It\u2019s a tough time for businesses out there. Given the tight competition, continuously evolving technology, unpredictable target markets, and costly labor costs, there is so much to consider if you want to stand out.<\/p>\n\n\n\n
In addition, companies also have to find ways to convert leads to paying customers, retain them, and provide an excellent customer experience<\/a>. How can they provide all these to their customers while creating a good profit?<\/p>\n\n\n\nThe answer to this question? Offshore outsourcing, <\/strong>particularly in the Philippines.<\/p>\n\n\n\nHere are reasons why offshore outsourcing in the Philippines may be the best and most forward-thinking strategy for your business \u2013 struggling or not:<\/p>\n\n\n\n
It lets your team focus on core functions<\/h3>\n\n\n\n![\"\"](\"https:\/\/sixelevenbpo.com\/wp-content\/uploads\/2020\/11\/Untitled-design-56.png\")
<\/figure>\n\n\n\nSo many strategies to try, so little time!<\/p>\n\n\n\n
Usually, core team members are distracted with having to do tedious tasks for the company, like data entry, appointment setting, or transcription. Instead of spending their work hours performing their core responsibilities that directly affect the company\u2019s growth, they\u2019re stuck doing repetitive and time-consuming tasks.<\/p>\n\n\n\n
By offshore outsourcing, these repetitive and seemingly endless tasks will be delegated to a dedicated remote team. They can take care of various administrative tasks, and even staffing. This way, your core team now has the time and energy to implement various strategies and perform their main responsibilities.<\/p>\n\n\n\n
You may think that it\u2019s a waste of money to hire a remote team to do your day-to-day operations\u2019 administrative tasks. However, various outsourcing testimonials from all over the world<\/a> prove otherwise.<\/p>\n\n\n\nOutsourcing provides access to a dedicated global talent not available in your locality<\/h3>\n\n\n\n
Companies need highly dedicated and professional employees to perform back office tasks. However, most of the time, the talent just isn\u2019t available in the headquarters\u2019 area or region.<\/p>\n\n\n\n
Offshore outsourcing is the perfect opportunity to get access to an educated, professional, efficient, and talented global workforce. The Philippines can provide young, vibrant, and digital-savvy remote workers to take care of the responsibilities needed for an efficient business operation.<\/p>\n\n\n\n
Currently, the Philippine BPO industry employs over 1.3 million Filipino workers<\/a>, most of whom are under the 20-30 years of age. In addition, 65 per cent of the workforce have the ability to \u201crender more complex and varied services for international and local clients.\u201d This means that you can not only outsource repetitive tasks to Filipinos \u2013 the skilled roles too like engineering and law.<\/p>\n\n\n\n![\"\"](\"https:\/\/sixelevenbpo.com\/wp-content\/uploads\/2020\/11\/Untitled-design-57.png\")
<\/figure>\n\n\n\nStrong government support<\/h3>\n\n\n\n
The Philippine outsourcing industry is heavily supported by the government. As early as 1995, the country established the Philippine Economic Zone Authority (PEZA)<\/a>, an agency dedicated to providing assistance and tax incentives to attract and retain foreign investors.<\/p>\n\n\n\nThe country\u2019s senate also recently committed to passing the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The CREATE Act aims to reduce corporate income tax (CIT) rate from the current 30 per cent to 25 per cent. It is also meant to rationalize specific tax incentives.<\/p>\n\n\n\n
<\/figure>\n\n\n\nEvery decision, every business strategy, and every option has its pros and cons. Take a look at the advantages and disadvantages of offshoring in the Philippines:<\/p>\n\n\n\n
Pros of offshore outsourcing<\/strong><\/p>\n\n\n\n Cons of offshore outsourcing<\/strong><\/p>\n\n\n\n It\u2019s a tough time for businesses out there. Given the tight competition, continuously evolving technology, unpredictable target markets, and costly labor costs, there is so much to consider if you want to stand out.<\/p>\n\n\n\n In addition, companies also have to find ways to convert leads to paying customers, retain them, and provide an excellent customer experience<\/a>. How can they provide all these to their customers while creating a good profit?<\/p>\n\n\n\n The answer to this question? Offshore outsourcing, <\/strong>particularly in the Philippines.<\/p>\n\n\n\n Here are reasons why offshore outsourcing in the Philippines may be the best and most forward-thinking strategy for your business \u2013 struggling or not:<\/p>\n\n\n\n So many strategies to try, so little time!<\/p>\n\n\n\n Usually, core team members are distracted with having to do tedious tasks for the company, like data entry, appointment setting, or transcription. Instead of spending their work hours performing their core responsibilities that directly affect the company\u2019s growth, they\u2019re stuck doing repetitive and time-consuming tasks.<\/p>\n\n\n\n By offshore outsourcing, these repetitive and seemingly endless tasks will be delegated to a dedicated remote team. They can take care of various administrative tasks, and even staffing. This way, your core team now has the time and energy to implement various strategies and perform their main responsibilities.<\/p>\n\n\n\n You may think that it\u2019s a waste of money to hire a remote team to do your day-to-day operations\u2019 administrative tasks. However, various outsourcing testimonials from all over the world<\/a> prove otherwise.<\/p>\n\n\n\n Companies need highly dedicated and professional employees to perform back office tasks. However, most of the time, the talent just isn\u2019t available in the headquarters\u2019 area or region.<\/p>\n\n\n\n Offshore outsourcing is the perfect opportunity to get access to an educated, professional, efficient, and talented global workforce. The Philippines can provide young, vibrant, and digital-savvy remote workers to take care of the responsibilities needed for an efficient business operation.<\/p>\n\n\n\n Currently, the Philippine BPO industry employs over 1.3 million Filipino workers<\/a>, most of whom are under the 20-30 years of age. In addition, 65 per cent of the workforce have the ability to \u201crender more complex and varied services for international and local clients.\u201d This means that you can not only outsource repetitive tasks to Filipinos \u2013 the skilled roles too like engineering and law.<\/p>\n\n\n\n The Philippine outsourcing industry is heavily supported by the government. As early as 1995, the country established the Philippine Economic Zone Authority (PEZA)<\/a>, an agency dedicated to providing assistance and tax incentives to attract and retain foreign investors.<\/p>\n\n\n\n The country\u2019s senate also recently committed to passing the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The CREATE Act aims to reduce corporate income tax (CIT) rate from the current 30 per cent to 25 per cent. It is also meant to rationalize specific tax incentives.<\/p>\n\n\n\nWhy offshoring in the Philippines may be the best strategy for your business<\/h2>\n\n\n\n
It lets your team focus on core functions<\/h3>\n\n\n\n
<\/figure>\n\n\n\nOutsourcing provides access to a dedicated global talent not available in your locality<\/h3>\n\n\n\n
<\/figure>\n\n\n\nStrong government support<\/h3>\n\n\n\n