Outsourcing Philippines: Destination of choice for SMEs
For the last two decades, the contact center and business process outsourcing (BPO) sector in the Philippines has enjoyed sustained growth. The industry employs over 1.3 million people in the country and generated US$26.7 billion in revenues in 2020, despite being hit hard by Covid-19. Industry estimates don’t show that letting up either, with projections of US$29 billion in 2022. A significant reason for this sustained success can be attributed to the outsourcing success of Fortune 500 corporations in the Philippines. The country is now also the preferred outsourcing destination for SMEs, as savvy business owners and entrepreneurs have begun to seize the opportunity.
“In today’s uber-competitive marketplace, SMEs need every advantage they can get and that begins with controlling costs. For many companies, it is just not possible to keep up with industry demands when they are saddled with rising wage costs for full-time workers. A typical hourly wage with a premium BPO in the Philippines averages US$12-14 per hour, compared to US$24-28 per hour for the exact same labor in the US. A 50% savings on labor is significant and SMEs are beginning to appreciate that outsourcing work to the Philippines can offer significant cost savings,” says Ralf Ellspermann, CEO of PITON-Global, an award-winning mid-sized call center and back-office outsourcing provider in the Philippines.
Image credit: PITON-Global
These cost savings do not come at the expense of maintaining a skilled workforce either. Quite the contrary, the Philippines’ outsourcing talent pool is vast and deep these days. Filipinos’ high English proficiency and cultural affinity with the US have made them the preferred choice in the BPO industry for US companies. The education system in the Philippines is renowned for being one of the best in Southeast Asia. And a primary focus is on training and mentorship for the in-demand jobs of the BPO industry.
Additionally, premium BPOs are increasingly offering more high-value skills to their outsourcing portfolio. As popular technologies such as AI and ML continue to emerge, key business processes such as product development, analytics, creative design work and engineering services are becoming popular offerings for premium vendors in the Philippines. Also, due to Filipinos’ higher skill sets (and English proficiency), outsourcing providers in the Philippines are offering a broad range of CX services, which many SMEs believe to now be one of the most critical outsourcing processes.
Investments in the country’s digital infrastructure make it easier to connect with key business partners while also offering more options for employees reliant on high-speed internet connectivity. It is evident, too, with industry-leading technology companies ramping up operations in the country to take advantage of some of the best talent on earth. The Philippines, for example, is one of the first countries where industry giants like Facebook, Google, and Amazon set up their support operations.
“The outsourcing success of Fortune 500 corporations in the Philippines over the years has not gone unnoticed and has paved the way for SMEs to do the same. Astute decision-makers have realized that competing globally requires many factors, including cost-containment, access to talent and as well as world-class tech and infrastructure, and being able to deliver high-value services; All of which can be obtained by working with premium outsourcing providers in the Philippines,” explains Ellspermann.
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