2 Reasons to Choose Philippines

In year 2010, Philippines has been reported to be a top BPO hotspot in the Global market. There are a lot of factors identified contributing to this milestone in Philippine economy. Two of those, top our list of why demand for outsourcing centers in the Philippines continue to rise.

1. LOW RATES:

With the economic phenomenon called Global Labor Arbitrage, business people, cost efficient as they are known to be, gain access to lower cost economies through offshoring. Arbitrage means taking advantage of a price difference generated by the wage gap between industrialized and developing nations. Amidst global recession, a foreigner's best resort for its business to survive is outsourcing to low wage countries. Some may just want to free up their time and grow their business but simply cannot afford unless revenue increases.  Consequently, Philippines is one of those developing countries with low wages (as seen in the graph below compared to US and other BPO resource countries). This is mainly the reason why companies choose the Philippines as their outsourcing destination.

Source: PayScale, SourcingLine, 2010

Moreover, what gets us ahead is the relatively high cost of personnel and worker inefficiency in the U.S., hence, they shift to countries where labor is cheap like the Philippines. The Philippines is one of the most cost effective locations in terms of compensation for IT jobs like web designing, system engineering, as well as voice and non-voice business processes.
 
Just for instance, salaries for technical resources range from $4,400 (for starters) to more or less $24,000 (for seniors) per annum. This allows foreign companies to save up to $30,000 per year in wages per employee. Definitely a huge amount of savings as compared to hiring a homeshore employee.

2. LANGUAGE PROFICIENCY:

Philippines has been considered to have better affinity with the American culture, hence having better understanding of American consumers.This dates back in the American period where Americans were said to have poisoned Filipino way of thinking through education. This has said to cause neglect in own Filipino culture and identity. However, through the years, this has been translated to a positive response towards the Philippines in the global economic arena. In fact the country has been a favorite because of the abundance of English speakers that are college graduates and Americanized when it comes to English accent. As a result, Philippines is chosen and preferred by most businesses for their outsourcing needs be it for voice or non voice processes. This paves way for more back office jobs like article writing, blogging , content writing to be done offshore. Grammar and spelling will never be a problem since Filipinos are heavily trained in technical writing.

Indeed, with lots of well-educated, English-speaking programmers and writers delivering quality work at a lower rate, who wouldn't seriously consider getting a Filipino staff?


By: Next Office