As a labor-producing country, Indonesia has a rival from the Philippines. In the last decade, the Philippines has made a dent in global outsourcing and has been so successful that it has become known as the outsourcing capital of the world. So, Indonesian workers will have tough competition against overseas Philippine worker.
The international outsourcing industry in the Philippines is now an established part of the global economy. With more than 1.3 million workers. For new or established businesses seeking a competitive advantage in the global market, the Philippines must become an important business process outsourcing. The Philippine outsourcing industry has been increasing aggressively for more than a decade. In 2020, it grew to USD 26.7 billion with the workforce growing 1.8 percent when the global outbreak had a significant impact on the economy in the Philippines.
With the industry expected to grow another 5.6 percent in 2021, and revenue expected to reach nearly USD 29 billion by 2022, SMEs should consider partnering with these premium vendors for their business processes. Many reasons have a part of the growth.
Overseas Philippine Worker and Outsourcing Incentives
Firstly, is ongoing government support for outsourcing incentives. The country’s outsourcing industry enjoys tax holidays, tax breaks, grants and other financial benefits all meant to drive growth. These incentives are critical to the sustainable growth of the industry.
Overseas Philippine Worker are Cost Effective Workforce
Second, a cost-effective workforce and a high number of applicants are other key factors driving BPO in the Philippines. New employees can be trained for remote work roles at a lower cost elsewhere in the world. The median hourly wage rate for working with a premium vendor is USD 14 per hour, whereas in the US, for example, the rate for the same job is USD 28 per hour.
Overseas Philippine Worker are Qualified Workforce
Third, a highly skilled and qualified workforce. The Philippines produces the most educated and highly skilled outsourcing personnel in the world. Universities in the Philippines prepare future BPO professionals for careers in the industry and focus on developing needed skills, such as IT, AI, and blockchain.
Improvements of Infrastructure
Fourth, is infrastructure. Now, Infrastructure improvements such as roads and facilities, as well as other critical technology infrastructure. This helped drive the industry’s sustainable growth over the past decade.
World Class Technology
Fifth is access to world-class technology. Premium BPO companies in the Philippines reinvest profits into their organizations and this includes maintaining the latest technology platforms. This means organizations partnering with these companies get access to this technology at no cost to deploy, maintain, and train its users.
English Speaking Culture
Sixth, English-speaking culture. The Philippines is a very English-speaking country which makes outsourcing even easier for companies looking to partner with vendors there. It makes doing business with them less risky as it removes the complications and communication barriers inherent in places with less developed English-speaking cultures.
The ongoing globalization of the economy requires entrepreneurs, SMEs, and large multinational organizations to find ways to stay competitive. With more than two decades of success, the BPO industry in the Philippines continues to thrive in all sectors with leading-edge customer support and IT-enabled services.