There are plenty of activities that can be outsourced: from customer service to human resources, legal services, accounting, search engine Optimization, technical drawing and many others. Outsourcing does not necessary represent a huge investment and allows any business to exclusively focus on the business development and the growth of its revenue.
Philippines is permanently featured in the international press as a favorite destination for multinationals looking to outsource some of its activities. In this article we aim to describe some of the key reasons why this is happening and why we believe that the Philippines represents a great opportunity for companies looking to decrease its costs and globalize its operations.
For several years the Philippine government made a huge effort to attract foreign investment investment to the Business Process Outsourcing (BPO) sector. This has brought incredible job opportunities to the qualified young people of the Philippines and contributed significantly to the emerge of a middle class that is starting to play an important part of the Philippine economy. BPO employees in the Philippines already exceeds 1 Million and this figure is expected to grow to 1.3 Million in 2016.
Here are the key advantages of the Philippines vs other countries:
1.People: Every business in the world is successful thanks to its PEOPLE. With their hard working, company culture and loyalty, Philippine labor force can be a great added value to your company. Philippines also possess the 3rd largest technical experts (IT, Technical Drawing, etc.) within the region (after India and China) and is expected to improve its ranking.
2.Culture: Due to its history, the Philippines has always dealt with foreign cultures: Portuguese, Spanish Japanese and American. This minimizes the operations costs and smooths the incorporation process in the Philippines when compared to countries such as China or India with deeper cultural gaps.
3.Language: In the Philippines, English is considered as the second official language. Most of the Filipinos have great English skills sometimes comparable to Native American or Australian. No language barrier will be noticed if you outsource your customer service department to the Philippines. Your client might not even notice that you are based in the Philippines.
4.Lower salaries: The Philippines stands as a low cost solution for your business. With lower wages, the performance, the competitiveness and efficiency of the people is worth it.
5.Tax incentives: To boost the foreign investment, Philippine government offers tax incentives programs to outsourcing companies willing to create employment and to exports services out of the Philippines. 4 to 6 years of income tax holidays and value added tax exemption are some of the main ones.
6.Free for foreign investment and limited capital investment: Contrary to other sectors, outsourcing business does not suffer of any restriction in terms of foreign investment. A foreigner can own 100% of its business without the need to partner with locals. The capital investment required is also minimal: USD 2.500 for companies generating at least 60% of its revenue overseas.
7.Economy: Last but not least, the Philippines economy is in a clear booming stage at the moment. With a growing middle class, Philippines has the potential to keep the growing of its economy above 6% over the next decade.
Having registered +100 call centers in the Philippines, Triple i Consulting provides business registration, tax consulting and legal advise to foreign companies looking to outsource some its services in the Philippines. Simplifying business and to increase investment and business in the Philippines is our mission.