BENEFITS OF OUTSOURCING
FROM THE PHILIPPINES
The literacy rate in the Philippines is an impressive 97%, and the country sees around 600,000 university graduates annually, which is twice the number of graduates from Australian universities. The Philippines offers significantly lower living costs, resulting in staff and occupancy expenses being approximately 70% lower compared to Australia and the US. This presents an opportunity for substantial reduction in operational costs.
Outsourcing to the Philippines offers numerous advantages that are widely acknowledged, which include:
Cost-effectiveness: Skilled professionals in the Philippines offer lower hourly rates compared to developed countries, resulting in significant cost savings for companies.
Strong English proficiency: Filipinos possess a high level of English proficiency, eliminating language barriers commonly associated with outsourcing to other countries.
Accessibility for small businesses: Outsourcing to the Philippines is highly feasible for small businesses, with the option to operate a team of employees at a cost as low as $2000.
Enhanced processes and services: Outsourcing to the Philippines can immediately improve business processes and contribute to economic growth.
Flexible employee benefits: Customizing employee benefits in a cost-effective manner is achievable when outsourcing to the Philippines.
Preferred by small and medium-sized businesses: The Philippines is a popular outsourcing destination for small and medium-sized businesses seeking to elevate their operations.
Below are the anticipated trends and growth rates for different types of outsourcing services, both in the Philippines and beyond, beyond the year 2023:
Business Process Outsourcing (BPO): Expected to experience a CAGR of 9.4% from 2023 to 2030, with a value of USD 261.9 billion in 2022.
Contact Center Outsourcing Service: Projected to reach a market size of USD million by 2026, during the period of 2021-2026.
Global outsourcing market: Anticipated to reach a value of $10 trillion by 2022.
United States DevOps Outsourcing Service: Estimated to be valued at USD million in 2023, with a growth rate of approximately percent during the review period.
Global IT outsourcing market: Predicted to grow by $98 billion from 2020 to 2024, with a CAGR of 5%.
Business Process Outsourcing and Information Technology Outsourcing: Recorded a global revenue of around 92.5 billion U.S. dollars in 2019.
Engineering Services Outsourcing: Expected to expand at a CAGR of 24.6% from 2022 to 2030.
Discover Premier Assistant,
a leading remote-only outsourcing firm.
We specialize in constructing cost-effective, efficient, and scalable operational teams for businesses aiming to achieve rapid and effective growth. Over the years, we have successfully recruited and trained numerous staff members to operate in the Philippines on behalf of our clients.
Why the Philippines?
In recent years, the popularity of outsourcing to the Philippines has surged, driven by the country's robust economic growth and competitive labor costs. With its strong position as the leading global destination for business process outsourcing (BPO), the Philippines now captures nearly one-fifth of the global BPO market.
How big is outsourcing the Philippines?
The Philippines' outsourcing market has the potential to contribute nearly $30 billion annually to the economy, with 8-10% annual employment growth. The sector operated remotely during the pandemic and has experienced rapid expansion, with revenues increasing from $267 million in 2004 to an estimated $30 billion in 2022. This growth can be attributed to factors such as the country's English-speaking population, strong work ethic, and favorable time zone.
Remote work is the future
Remote work has gained significant traction globally, and the Philippines is no exception. With its robust outsourcing industry, the country has embraced remote work as a viable solution, leveraging its skilled workforce to provide remote services to clients worldwide. The Philippines' strong infrastructure and English proficiency make it an ideal destination for remote work arrangements.
What are the opportunity areas?
According to the World Bank, the BPO sector in the Philippines has potential for growth by offering value-added services and implementing institutional policies. Strengthening analytics and artificial intelligence verticals could lead to increased revenue and job opportunities. Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand, emphasized that leveraging specific strengths in manufacturing, services, and export can generate more jobs and alleviate poverty at a faster pace.
How big can I scale in the Philippines?
Concentrix, the largest IT-BPO employer in the Philippines, boasts over 90,000 full-time employees (FTEs) and has shown remarkable growth potential in a country with a population exceeding 110 million. Despite the challenges posed by the pandemic, Concentrix expanded its operations and achieved a significant milestone, generating $1.34 billion in revenue in the Philippines according to a top-five IT-BPO employers list compiled by Colliers.
The Philippines drives major cost savings
The Philippines drives greater cost savings through its significantly lower labor costs compared to developed countries like the United States and United Kingdom. By outsourcing BPO operations to the Philippines, businesses can take advantage of the average hourly rate of just $4 for a BPO worker, in contrast to the $17 rate in the United States. This substantial difference in labor costs enables businesses to achieve significant cost savings when opting for outsourcing to the Philippines.
Skilled labor in Abundance
When businesses choose to outsource to the Philippines, they not only benefit from cost savings but also gain access to a vast pool of skilled labor. The country possesses a large workforce of English-speaking professionals with college degrees and technical expertise. This abundant talent pool makes it easier for businesses to find workers with the precise skills and qualifications they require for their operations.