The Philippines Outsourcing Advantage

The Philippines Outsourcing Advantage

Jun 21

Outsourcing is the latest buzzword in developed countries, mainly because the intense competition fostered by globalization has put them at a disadvantage in terms of labor costs. To maintain their position as market leaders, most have compromised by shifting some processes to third-party providers at lower costs. While outsourcing does not necessarily mean delegating work to foreign workers, that is precisely the type of outsourcing that makes good business sense these days.

There are a number of countries with the infrastructure and affordable labor force to make remote outsourcing of business processes a viable undertaking and the Philippines is one of them. Hovering between the 5th and 7th ranking depending on the source, the country has jump-started its technological development in the last couple of years, improving its infrastructure to become more competitive in the business process outsourcing (BPO) market. Even before LTE, however, the Philippines always had an edge when it came to outsourcing: near-native English proficiency.

Most Filipinos anywhere can understand English, sometimes better than the national language, Tagalog, which is really only used in Luzon. A person from the Visayas, for example, will not understand Tagalog but can communicate very well in English. This is because Filipinos in general have identified closely with the American culture as a result of the American occupation during World War II and long association with Americans in the various bases that used to be in the country. Today, many of the currently existing Philippines outsourcing companies have a labor pool of people who are highly proficient in English and can speak with a neutral or American accent to choose from.

This is a distinct advantage when it comes to outsourcing customer service and sales functions. It’s often off-putting for a customer to reach a customer service center with employees who struggle to easily communicate with them. With Filipino outsourcing, customers are unaware that the agent they are speaking to is not a local, which is desirable from the client’s point of view. If you have outsourcing needs, chances are the Philippines will be the best option for you.

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