Examples of outsourcing in the Philippines.

The Growth of Outsourcing in the Philippines

According to a report by Statista, the number of businesses in the Philippines that outsource services has been steadily increasing over the past decade. In 2019, it was estimated that around 55% of Philippine companies outsourced services, up from 38% in 2008. This growth is driven by several factors, including:

• Skilled workforce: The Philippines has a large pool of talented professionals with English language proficiency, making it an ideal destination for businesses looking for skilled labor at a lower cost.
• Cost-effective labor rates: Labor costs in the Philippines are significantly lower than in many other countries, allowing businesses to save on expenses while maintaining high-quality services.
• Time zone advantages: The Philippines has several time zones that make it easy for businesses to find flexible work arrangements that meet their needs.
• Government support: The Philippine government has been actively promoting the country as a business-friendly destination, offering incentives such as tax breaks and subsidies to attract foreign investment.

Examples of Outsourcing in the Philippines

Now that we have an understanding of why the Philippines is becoming an increasingly popular destination for outsourcing, let’s take a look at some real-life examples of businesses that have successfully outsourced services to the country.

Software Development

One of the most well-known examples of outsourcing in the Philippines is software development. The country has become a hub for software development, with many companies choosing to outsource their coding and development needs to skilled professionals based in the Philippines.

• Google: In 2015, Google announced that it had opened an engineering office in Manila, which was staffed by Filipino engineers and developers. This move allowed the company to tap into the country’s skilled talent pool while maintaining its global presence.
• Airbnb: In addition to its engineering office in Manila, Airbnb also outsources software development services to Filipino professionals. The company has stated that it is able to find skilled talent at a lower cost than in other countries, allowing it to maintain its competitive edge.
• Uber: Uber has also set up an engineering office in Manila, which is staffed by Filipino engineers and developers. The company has stated that it is able to tap into the country’s skilled talent pool while maintaining its global presence.

Customer Service

Another popular example of outsourcing in the Philippines is customer service. Many businesses choose to outsource their customer service needs to call centers located in the country, where they can find skilled agents at a lower cost than in other countries.

• Bank of America: The bank has several call centers located in the Philippines, which are staffed by Filipino agents who provide customer service support to customers around the world.
• Coca-Cola: Coca-Cola has also set up a customer service center in Manila, which is staffed by Filipino agents who provide support to customers in Asia and the Pacific region.
• Zappos: The online shoe retailer has outsourced its customer service operations to a call center located in the Philippines, where it can find skilled agents at a lower cost than in other countries.

Accounting and Finance

Finally, many businesses choose to outsource their accounting and finance needs to professionals based in the Philippines. The country is home to a large pool of qualified accountants and financial analysts who can provide high-quality services at a lower cost than in other countries.

• Deloitte: The global professional services firm has several offices located in the Philippines, which provide a range of accounting and finance services to clients around the world.
• PwC: PwC is another global professional services firm that has set up offices in the Philippines, where it provides accounting and finance services to clients in the region.
• KPMG: The global audit, tax, and consulting firm has also established a presence in the Philippines, providing accounting and finance services to clients in the region.

The Benefits of Outsourcing in the Philippines

Now that we have looked at some examples of outsourcing in the Philippines, let’s examine the benefits of this approach for businesses.

Cost Savings

One of the most significant advantages of outsourcing to the Philippines is cost savings. Labor costs in the country are significantly lower than in many other countries, allowing businesses to save on expenses while maintaining high-quality services.

Skilled Talent Pool

The Philippines is home to a large pool of skilled professionals with English language proficiency, making it an ideal destination for businesses looking for talent at a lower cost than in other countries. This includes professionals in software development, customer service, accounting, and finance.

Government Support

The Philippine government has been actively promoting the country as a business-friendly destination, offering incentives such as tax breaks and subsidies to attract foreign investment. This support can make it easier for businesses to establish a presence in the country and take advantage of its many benefits.

Summary

In conclusion, outsourcing is becoming an increasingly popular approach for businesses looking to reduce costs and maintain high-quality services. The Philippines has become a hub for offshore services, with its skilled workforce, cost-effective labor rates, and government support making it an ideal destination for businesses looking to outsource their needs. Whether you are looking to outsource software development, customer service, accounting, or finance, there are plenty of examples of successful outsourcing in the Philippines to inspire your business.