If you are a business executive who hasn't tried outsourcing yet but you have friends that have tried it, you are bound to hear India and Philippines at some point in your conversation. This is because India and Philippines are the world's top outsourcing destinations (Why the Philippines Makes a Better Back Office than India). Your choice of country should really depend on the service you seek. If your company wants services in the lines of software development, then India is probably your best bet as Indians have proven themselves quite adept at technology. If your company needs labor-intensive services such as human resources, accounting, data entry, content-writing, and customer contact, then the Philippines is your best option.
Here are some perks of outsourcing to the Philippines.
Great price!
This is the reason you want to outsource to begin with: cost rationalization. Whether it's economic constraints or just your own volition, outsourcing can save you a lot of money if you know how to do it properly (How to Choose the Right Outsourcing Vendor.) To give you an idea of how cheap the labor is in the Philippines, we'll need to compare it to the labor rates in other countries. If you're hiring a fresh graduate in the United States for an entry level position, the least you can pay them is $7 an hour. In the Philippines, the starting wage is $1 per hour, and there are even some who are willing to work for less. This, however, does not imply that because labor is cheap, the quality of the service is substandard. In fact, many multinational companies who have invested in Filipino offshore employees find them as capable of doing the work as their inshore workers. What makes the labor rate so cheap here in the Philippines has nothing to do with the capabilities of the Filipino labor force but has more to do with the economic state of the Philippines.
Great place!
If you've ever been to the Philippines, then two things probably caught your attention: the hustle-bustle and the hospitality. Manila is one of the densely populated cities in the world, so you're bound to notice the traffic, the metropolitan rush, and the overall urban-ness that makes Manila the capital of the country. This is also where most of the international companies have set up back office for customer support and other IT-related work. If you want less city hustle-bustle but still a metropolis in its own right, you'll want to check out Cebu, the second center of business in the Philippines. Apart from a more peaceful environment, Cebu also enjoys a lower cost of living than Manila.Other Philippine cities are also conducive for IT offices including Santa Rosa, Iloilo, and Davao (The Best Cities to Outsource in the Philippines).
Great people!
In considering hiring employees from another country, you are sure to feel some trepidation about a lot of things: the cultural gap between you and them, the monitoring process, the communication, etc. Fortunately, there are solutions for those apprehensions. If you're worried about the cultural differences between you and Filipinos, then you'll be pleased to know that they are quite well-versed with Western culture. If you're American, you'll probably be surprised how much they know about your geography, your language, and your favorite TV shows. As for the monitoring and communication concerns, there are companies who take care of that for you. They are called outsourcing service providers. Striking a negotiation with these companies isn't something you can do for one day over cups of coffee and a handshake. Choosing the right outsourcing vendor takes months to a year for you to really evaluate and test that they handle the job.
Aside from being knowledgeable in Western culture, Filipinos are proven to be one of the best English speakers in the world of business. This is back up by several surveys and studies including the one conducted by GlobalEnglish. While English may not be their native tongue, Filipinos are trained from when they were very young to speak English in the most natural way possible. This is evident in some foreigners mistaking Filipino call center agents for Americans.
Ultimately, outsourcing only requires you to consider three things: the price, the place, and the people. Other details come into place once these three factors have already taken shape. Outsourcing in the Philippines is not without its share of challenges, which thankfully, with the right outsourcing partner, can be overcome once the appropriate steps are taken. Different countries offer different perks and pros, but testimonials and surveys point to the Philippines as the best. So, what are you waiting for?
