Why the USA Outsource to the Philippines?

Why the USA Outsource to the Philippines?

Why do companies prefer to outsource to the Philippines? Is it because of high-quality work, a favorable time zone, outsourcing-friendly policies or low labor cost? The answer is all of the above. Over the years, the Philippines has evolved into being the world’s most preferred outsourcing destination for a host of IT services across domains. The Philippines is one of the few outsourcing locations that offer several advantages that enable organizations to work more efficiently, cut down on cost and improve quality all at once.

Here are some reasons why the USA outsource to the Philippines. 

1. English Language Proficiency.

The Business English Index (BEI), a whitepaper released by Global English in 2013 ranks the Philippines as the top BEI for two consecutive years with a score of 7.95, far ahead of the next country Norway with 7.06, and the Netherlands with 7.03. The BEI study is designed to quantify global workers’ English competency in the workplace. A BEI score of 1.0 indicates the ability of people to communicate and read-only through simple English statements, while a score of 10.0 indicates equivalency with native English speakers. Given these rates, there’s no doubt the Philippines is by far the top outsourcing location in the world.

2. Highly Skilled Talent.

While it is a popular misconception that BPO in the Philippines is limited to call centers, there are a large number of providers offering talent across a multitude of fields including medical transcription, human resources, customer service, financial services, legal transcription, software development, animation, graphic design, content writing, and marketing. Contrary to the belief that the primary reason business owners outsource is only to reduce costs, they also choose to outsource to target the best talent for the job.

3. Excellent Work Ethics.

Business owners invest in Filipino teams due to their excellent work ethic, values, integrity, loyalty, service-oriented mindset, and the friendly working atmosphere they seem to foster in any organization’s culture. They value integrity just as much as they value time and show innate respect for individuals. Filipinos generally know what fun is without forgetting what responsibility entails and they place high regard on professionalism.

4. Quality Yet Cost-Effective. 

Simply because Filipino talent is a low-cost alternative for businesses, does not mean quality is jeopardized. The difference in labor costs, benefits, and operational effectiveness between countries make the Philippines a more appealing location to outsource and grow an offshore team. The cost of labor in the Philippines is much lower when compared to other outsourcing locations. Low-Cost services are one of the primary advantages that you can leverage by outsourcing to the Philippines.

5. Preferred outsourcing location

Research surveys have proved time and again that the Philippines is the most preferred outsourcing location among global companies. In the United States alone, more than 90% have ranked the Philippines as their first choice for outsourcing IT and software services. Over the years, the United States, Canada, Europe, and the United Kingdom have recognized the country of the Philippines as an outsourcing superpower.

6. Unique time zone advantage

As any business will tell you, time is equal to money. If a company can get access to 24/7 services, it can be sure to complete work much ahead of deadlines and take on more projects. Customers are happy when they can avail of services or get their queries answered on a 24/7 basis. Now, this has become a reality with outsourcing.

7. Stable government

When compared with other outsourcing locations, the Philippines has a stable government. The IT sector has always been a top priority for The Philippines government has ensured that the outsourcing process is seamless by setting up a ministry of information technology. This IT ministry streamlines regulatory processes and quickly approves the implementation of IT projects. Over the past 10 years, the Philippines has been able to build several hi-tech IT parks with cutting-edge technology and best-of-breed infrastructure.

The economy of the Philippines continues to undergo significant change due to increasing competition. Given the changing situation, it is a wise proposition to begin experimenting with Philippine outsourcing just like what Digital Marketing Concepts did. Doing so will provide a potential competitive advantage over your competition. In the end, you will find your company in a position to produce more product, profit, and net income, and continue the American tradition of business productivity.