The offshoring industry in the Philippines continues to grow rapidly. Recently, more companies, especially small to medium, are looking to outsourcing as a strategy to cut costs, find staff with specific skill set, increase efficiency, and reduce administration and overhead.
From traditional Business Process Outsourcing (BPO) focused on customer service, the industry has now evolved into Knowledge Process Outsourcing (KPO). As a result, multi-disciplinary teams are being built across the value spectrum including lead generation, sales support, account management, customers service, purchasing & logistics, accounting & finance and IT and marketing. As well as outsourcing moving into new areas, it is also moving up the value chain, with more senior resources being engaged over time.
The Philippines has positioned itself as one of the top offshoring destinations in the world, and continues to outperform its neighbouring competitors for various reasons:
Pros 1: Excellent English proficiency
The Philippines has embraced English as one of its official languages which makes it the 4th largest English speaking country in the world, with over 90 million English speakers (as a comparison the UK has 78 million English speakers).
When doing business in the Philippines, communication is smoother than countries like China and other Asian nations. This allows offshore team members, onshore managers, and clients to collaborate and communicate more efficiently and effectively.
Pros 2: Large pool of highly skilled professionals
The Philippines boasts a large population of highly skilled professionals, and every year over 400,000 university graduates join the workforce, expanding the talent pool.
Many of these graduates are educated in software engineering, accounting, business administration, IT and customer-related services, making them ideal for companies looking to hire staff with specific skill set.
Pros 3: Long standing connection with foreign clients
Filipino professionals are a natural fit for outsourcing because of their strong affinity with Western culture. Years of exposure has set the Philippines in a strategic position where its people can work, collaborate and adapt with several nations. Many candidates in the offshoring space have in fact only ever worked for Western businesses.
Cons 3: Technology setup
A common concern for those ready to outsource is the ability of the outsourcing vendor to provide technical support, from initial setup to ongoing IT support. The more mature providers not only provide direct IT support, but they also can provide diagnostic and analysis to proactively suggest improvements for network connectivity.
It should go without saying that if your vendor doesn’t have redundant ISPs, backup power & generation, and backup links between campuses, then they should be avoided. This should be part of any vendor due diligence.
Cons 4: Poor processes
Having the right systems and processes is a critical part of a successful offshoring. When preparing to outsource, ensure that your organisation has clearly mapped out all major processes to avoid future problems. Here are some important tips to strengthen your processes:
- Provide new team members an overview of your business, as well as the BPO team
- Identify training needs within the team, and raise these requirements with the management
- Build daily rhythms for daily catch-ups and to understand issues
- Implement standard quality control within the team
If Standard Operating Procedures (SOPs) are a gap, the optidocs service is something many organisations utilise to rapidly fill this gap.
The Philippines has made its name as one of the pre-eminent offshoring destinations because of the many advantages it offers. Over the years, Filipino workers have proved themselves to be valuable partners in supporting Western businesses. When kept motivated, treated with respect, highly appreciated and valued, expect that they will deliver great work in return.