Outsourcing: It’s More Fun In The Philippines

The catch phrase “It’s More Fun in the Philippines” has been often used more for tourism development rather than economical advantage. Although in some ways, it can also be used for the latter as well.

The BPO sector in the Philippines is booming. There are many factors that led to the increase in interest on outsourcing and web companies in the Philippines. What caused this influx of business opportunities in the country? Let’s take a look at some of the reasons:

Low Cost of Living

The Philippines is a third world country that has mostly depended on its BPO sector for economic advancements. The cost of living is a lot smaller compared to other countries, and that disparity becomes more evident in the salaries.

The daily minimum wage for Filipinos is only around $10. India, which has an outstanding BPO sector as well, pays employees 37 percent more than their Filipino counterparts. This rate is one of the smallest in the world, and is further becoming evident in company savings.

It is estimated that companies who put up bases in the Philippines are set to save $15,000 to $22,000 worth of savings from the low cost of production.

Laws Are Business-Friendly

Unlike other countries, the Philippines impose lower tax obligations to companies who want to set-up a contact center or manufacturing base here. It is also easy to establish business in the country provided that you have the proper certification and licenses from the government.

Fewer Holidays

There are only 18 legal holidays in the Philippines. Compared that with India’s 33 holidays per year, outsourcing in the Philippines is a better option as it lessens delays on production due to holidays.

Talented Work Force

Majority of students who graduate each year earned a degree in Information and Technology. An estimate of 440,000 students is expected to graduate by 2012-2013. 50,000 of which will be IT grads. Filipinos are also adept in using various technology and Internet applications that can be tapped to meet the different needs of a global company.

Economic Zones

The economic zones are also prevalent in the country. Along with Makati and Ortigas, other business sectors in Cebu, Subic, Davao and Laguna are also expected to play a major role in the Philippine’s BPO economy.

All the pieces are aligned for success. The BPO industry in the Philippines is primed to take huge leaps in the near future. Outsource to Philippines and reap the benefits of a growing economy!


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