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Why Outsourcing to the Philippines Is a Great Option for SMBs

Why Outsourcing to the Philippines Is a Great Option for SMBs

Catherine Park1983 15-Feb-2018

Now more than ever, the corporate world is beginning to see the benefits of outsourcing to the Philippines. This especially applies to IT services, which are the most popular outsourcing choice of multiple organizations. 

In fact, according to the Deloitte global outsourcing survey, 53% of establishments are currently outsourcing IT functions. And, the reason behind it is easy to understand because the main goal of small and medium-sized businesses is to build an effective and manageable IT infrastructure.   

On the other hand, outsourcing processes take hold of a diverse range of business responsibilities. Therefore, any type of repetitive tasks or one-time projects can be safely appointed to the rapidly advancing Philippine freelancers.

Affordable Service

Compared to other Southeast Asian countries, Philippines offer quite affordable, or should we say low outsourcing costs. Anything from office space rentals and supplies to third-party services, it's all low-cost, which provides a great advantage to SMB's as they can avoid large capital expenditures and expand without breaking the bank.

The only thing with that’s a tad expensive is telecommunications. Meaning, internet connections might need an investment, while the costs of labor remain quite cheap. Still, Philippine outsourcing will always beat the expenses when compared to Europe or the US.   

No Language Barriers  

Another excellent perk of the Philippines is that there are no language barriers. Due to a strong US presence in the Philippines, their government system is quite similar theirs. Actually, English is their official language, along with Filipino, and employees have a proficient understanding of requested demands and supplies. They can provide the needed support across multiple channels and work alongside with clients without a visible language difference.

Skilled and Talented Workforce 

The Philippines have one of the highest literacy rates, standing at 97.5% and it continues to grow annually. Their education system is very strong, so their workforce can only bring quality and value to small or medium companies. Due to so many skilled individuals, the Philippines BPO industry is rapidly growing and providing more job opportunities to locals. Contrary to India where there is a serious problem of hiring and retaining employees, Philippine employees are ready and reliable for taking on special assignments and meeting SMB standards. 

Guaranteed Privacy 

The biggest concern of outsourcing is often dealing with sensitive business data which is why many organizations avoid overseas outsourcing. However, according to the 2012 Data Privacy Act, personal and sensitive information have strict regulations regarding unauthorized usage and access. Therefore, outsourcing to the Philippines is the safest choice. They offer absolute privacy worthy of international security standards. 

Full Government Support 

Why Outsourcing to the Philippines Is a Great Option for SMBs

Outsourcing companies have full government support as this industry is the number one source of income in the country. The Philippines even have special economic zones which endow fiscal and non-fiscal incentives like a 4 and 8-year income tax holiday to BPO endeavors. Taking into consideration all of the benefits and the fact that more businesses are looking to tap into this lucrative market, now is the right time for minor establishments to outsource and enhance their business operations. 

The Philippines offer the affordable base of a highly talented workforce which currently make it the best outsourcing location. The Western influence in culture, combined with a great education, makes these employees great professionals who will support growing SMB’s. Hence, if your BPO needs exceed your potential, revise the idea of entering the Philippine market.


Updated 27-Jun-2020
Catherine Park is a professional Content Writer and a blogger with full of energy and positivism. She is expert in writing exclusive contents on business and technologies that are helpful for large enterprises, SMEs and business startups.

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