Outsourcing Philippines: Why it makes perfect business sense

Outsourcing Philippines: Why it makes perfect business sense

/ 10:00 AM August 25, 2022

It’s an exciting time for global business. Rapid digitization and globalization have enabled many companies to tap into new markets and consumer pools that they didn’t have access to 10 years ago. Remarkable growth, however, comes with serious operational setbacks— primarily increased demand for labor and the need for large-scale expansion of services. 

“In today’s fast-paced and increasingly competitive business environment, seamless operations and impeccable customer service are a non-negotiable component of commercial success. If you can’t keep your customers happy, your business could be obsolete in just a few short years,” says Ralf Ellspermann, CEO of PITON-Global, an award-winning outsourcing provider in the Philippines. Businesses in the United States are at a disadvantage. Operating costs are soaring, millennial culture surrounding work has shifted drastically, with phenomena like the Great Resignation taking America’s economy by storm, it has become increasingly difficult to recruit and retain top talent at an affordable cost, and turnover among onshore call center and back-office outsourcing providers is unreasonably high.

“There is, however, a more cost-competitive and reliable solution for US-based companies looking to resolve front and back-office labor shortages — outsourcing to the Philippines,” says Ellspermann

With more than 20 years of experience in business process outsourcing (BPO), the Philippines has established itself as the leading global provider of call center and back-office outsourcing services. BPO in the Philippines has skyrocketed to success due to a number of factors. 

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Photo courtesy of PITON Global

“The first being that the labor pool in the Philippines is vast and highly qualified. As the 3rd largest English-speaking nation in the world after the US and the UK, more than half of the population speaks English, contributing to the remarkable success of call centers in the Philippines,” explains Ellspermann.

In addition, the country’s workforce is highly skilled and dedicated. The Philippines has a massive population of over 100 million which leads to oversupply of labor and a shortage of new opportunities with Philippine-based companies. Due to the high demand for employment, it is easy to recruit and keep top talent. Outsourcing to the Philippines is an effective business strategy for terminating the resource depleting cycle of perpetual recruitment and hiring that is common in American companies.

According to Ellspermann, “BPO to the Philippines saves companies significant amounts of capital. The purchasing power of the dollar in the Philippines is significantly stronger than in the United States. Standard hourly rates for BPO in the Philippines are much lower than in the US. Cost savings from outsourcing business processes to the Philippines can be as high as 50%.”

Despite the impressive sum of cost savings from outsourcing to the Philippines, the quality of services is, when choosing to partner with premium outsourcing providers, not compromised. The Philippines has one of the most dynamic and vibrant economies in South-East Asia, and with that comes world-class infrastructure. In particular, the BPO industry is supported by advanced technological and infrastructure. The leading outsourcing companies provide staff with all the necessary tools to perform, including high speed internet, accessible IT troubleshooting, and state-of-the art facilities equipped with cutting-edge technology.  

Furthermore, BPO in the Philippines enjoys the full support from the government who recognizes the astonishing economic contribution that the industry has made to the Philippines economy. The BPO industry alone generates US$28 billion in annual revenue, a whopping 8% of the country’s overall gross domestic product. The widespread support for the industry in the Philippines helps to remove roadblocks and bureaucracy that clients may experience with onshore outsourcing providers. 

“The Philippines has proven itself as an industry-leader in offshore outsourcing and is competitively positioned for years to come. There is no better time than now to start outsourcing your company’s BPO requirements and no better marketplace to obtain services, than the Philippines,” concludes Ellspermann.

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