15 Reasons the Philippines is Most Preferred BPO Destination in the World
The customer service excellence of Filipinos is unparalleled. Perhaps one reason the Philippines has become a leading BPO (Business Process Outsourcing) destination in the world and for many years now.
And we’ve asked some of my friends and colleagues working in the BPO industry about their thoughts and here are their responses:
“What do you think are top reasons the Philippines is one of the most preferred BPO destination?” Honey, Content Moderator Alorica Ph
- Filipinos are very responsible and very willing to help others, whether in person or virtually.
- Filipinos can work with or without supervision as long as they are trained well on the job they are going to do.
- Filipinos are very dedicated to their job and they can put their effort on it to become the best of it.
- Other companies across the globe and across industries cite cost savings as the key factor that makes the Philippines an ideal outsourcing destination.
- Very competitive labor cost, the country’s office rental rate is less expensive than anywhere else in the Asia-Pacific
- Filipinos handle their job well and will always put their best to their job just to make their client satisfied.
- For most Filipinos are thrilled to serve their fellowmen even in their little way and never complain about how they get treated in other ways.
Ace Garong, English Teacher, TOFL & OET trainer
- Excellent communication skills, we can speak fluent English
- Pronunciation is neutral or sometimes we can imitate native English speakers’ sounds
- Highly trainable
- Companies who put up BPO business have incentives and get lower tax
- Cost of operation and workforce is cheaper than having it in their own country
Rongie Abella, Math Teacher, former Amazon Ph employee
- Filipinos are capable of speaking Standard American English.
- Philippine labor is cheaper than other countries.
- Filipinos are good natured people.
- Filipinos have high regards to Americans and Europeans.
- There is a large pool of capable manpower in the Philippines.
We’ve also conducted a quick poll on LinkedIn and here’s the result ➡️
So after going through some overview, we’ve listed down the top 15 reasons plus a bonus one of why most BPO companies have chosen the Philippines to expand their businesses.
1. Affordable salary rates
A lower salary rate doesn’t always mean lower quality of results your employees will deliver.
The reason salary rates and other compensation benefits are way more affordable in the Philippines is because of its lower cost of living.
And you can legally pay $2.50 an hour for your remote employee in the country doing the same job your onshore team might have.
While providing other benefits such as incentives for punctuality, performance bonus, training and skills advancement, travel perks, team-building exercises, among others remain essential in keeping your Filipino workforce stay longer, happy and motivated.
Office rental fees are relatively cheaper too, with modern and state-of-the-art facilities already, especially in the provinces of Pampanga, Cebu, Iloilo, Cagayan de Oro, and Davao.
Thus, most venture capitalists in the BPO sector, whether a startup or growing enterprise have leveraged the affordability in doing business in the country.
We credit the ability of most Filipinos to speak and understand the English language to its pre-colonial rich history and influence from British (short period) and American occupation.
And the declaration of English to be used as an official secondary language after Filipino had cemented its role to unify the medium of communication in both private and public sectors.
- Education from primary to tertiary level uses English in most of their subjects.
- Media publications in paper or online are available in English.
- Government archives, foreign trade relations, senate hearings, street signs, food menus are mostly written in English.
Thus, when the BPO industry landed in the country in the 1990s, clear communication in oral and written English from the government, investors, and local employees has elevated the success of the industry in the country even more today.
Meanwhile, the mastery of the English language for most Filipino job candidates makes it easier for them to converse with foreign employers and get hired.
And then get training quickly for specific skills, most common native- English expressions, standard American English accent, and cultural nuances of their target markets.
Foreign influence to the Filipino communities continues to speed up, especially in pop culture, Hollywood movies, and celebrity gossip and more!
Also include sports enthusiasts in basketball, boxing, and beauty pageant winners on the international stage.
While modern and extended families of various Filipino families around the world have contributed to the workforce back home to become more adept, and have a cultural affinity to the Western community.
Bringing back home “balikbayan boxes” full of pasalubong or gifts such as gadgets, chocolates, fashion clothes, can goods, among others from the West.
Thus, most Filipinos, especially the younger generation, are quite updated on the latest trends and technologies.
And offshore companies have less difficulty in training their Filipino employees about the different cultures of their customers that are mostly from western countries.
Its ability to speak English with neutral accents can also see the affiliation of most Filipinos to the western world and can also imitate foreign accents such as the American and British ones.
Highly trained BPO employees can speak English with fluency, the right tone, and with confidence.
Making it sometimes difficult for the customer on the other line to tell that someone assisting her is coming from the Philippines.
Yet, a natural Filipino English accent is equally unique, easier, and clearer to understand, especially for non-English speakers.
Because most Asian countries such as South Korea, China, Vietnam, Indonesia, and even Russia prefer to learn English in the Philippines.
Aside from its affordability, friendly Filipino teachers are making quite a difference in teaching different levels of English learners with so much patience, kindness, and an easier to understand Filipino English accent.
The Philippines is home to a diverse group of people who will give their lives for the service of others so they can provide support to their families.
A country that produces most healthcare and marine professionals abroad, including nurses, caregivers, nannies, teachers, and seafarers.
You ask someone on the street for help with directions, and you get tons of information about where you should get going.
And a hardworking and resourceful BPO employee would always go above and beyond for the satisfaction of their customer’s issue.
That’s why outsourcing customer service in the Philippines has significantly increased and now becomes one of the leading economic drivers in the country.
Now ordinary Filipino workforce doesn’t need to go abroad to look for greener pastures away from their close-knit family.
As the opportunity of most BPO companies expanding to the country has offered higher compensation benefits, leadership advancements, and more career opportunities.
Although a relatively small country, the Philippines is home to over 109 million people as of 2020 population data. The median age is 25.7 years.
Producing top talents from the country to become globally competitive is one goal of the national government by improving its education system ( K-12) and offering various technical courses.
Every year, state universities and colleges produce hundreds of young professionals to fill in human labor in the private and public sectors.
A young and diverse workforce coupled with extensive training for various important skills guarantees sustainable and economic growth in the future.
And offshore companies leveraging the natural talents of Filipino employees have offered various digital innovation training here and abroad.
Hence, the creation and support of the government to foreign investors has now paved the way for a synergistic development between offshore companies and the Philippines.
Despite average Filipino BPO employees receiving a little above minimum income for the first 6–12 months of their employment, they remain proactive and patient to learn the ropes in their respective job responsibilities.
And when they become experts in their fields, they continue to value their work because they want to provide for the needs and wants of their immediate families.
More inspired to get to work every day because they could provide food and education support to their brothers and sisters.
And even help with the medical or maintenance support of their parents and grandparents.
A productive team composed of friendly office mates and motivating employers are some factors we have observed that your Filipino remote team will feel comfortable and likely to stay loyal to your company.
Is employee retention necessary?
With a healthy and professional environment, even younger BPO workforce choose to stay longer in a company they work for.
And they admitted that one of the main reasons they are staying longer is because most BPO companies offer them higher compensation packages and more incentives and other perks!
So, just continue nurturing your employees with various team-building activities in or out of your office while cultivating closer and professional relationships with other team members.
Thus breaking some uncomfortable gaps in values or and a great opportunity to discuss some issues in the workplace.
And with lots of options for island adventures and or nature-tripping getaways in the Philippines, your offshore team will surely find stunning places to gather and unwind on weekends or holidays!
Setting a foundation of a unique culture with dynamic and friendly Filipino employees who will help your business to succeed because they are staying with you through the years.
Your offshore business in the Philippines may continue to expand its various products or services offered.
Thus the need to increase your workforce is vital to keep up with your demanding target market.
Yet, most Filipino virtual assistants, ESL teachers, IT, graphic and anime designers, software engineers, call center representatives, are quick to adjust to the norm and will learn more skills with an increase in wages later on.
So, in the meantime, you don’t have to hire other job positions to fill in because most Filipino teams are flexible to shift from one job responsibility to another.
Because your Filipino remote staff possess strong work ethics, they take responsibility for every task you assigned to them.
Team leaders and members work harmoniously to achieve your KPI requirements and quickly get into the next sprints.
Even when they need to wake up early or come home late, you can always rely on your Filipino remote workers to give you accountability for getting the job done.
And like any other company culture, it is important to listen to your remote teams’ feedback or grievances as quickly as possible when they have to avoid further miscommunication that can affect their productivity.
Local and national governments in the Philippines have acknowledged the importance of direct foreign investment (FDI) to help propel economic growth and development in key cities in the country.
While ensuring pro-employee mandates and regulations, the Philippine government continues to collaborate with foreign investors by attracting tremendous support and tax incentives.
The Data Privacy Act of 2012 protects foreign companies and employees from theft and illegal use of your company’s information and trade secrets.
The aim to promote equal wealth distribution and employment opportunities, various free trade/ economic zones for industrial, manufacturing, and IT/BPO industries are set in major areas in Luzon, Visayas, and Mindanao.
Improved infrastructures, internet connectivity, road widening, and connecting bridges in nearby islands have become a staple in the country’s recent development.
So if you’re planning to expand your offshore business in the Philippines, ask your local partners about tax exemptions and other value-added services because the local and national governments highly supported you in doing business in the country.
The Philippines still mirrors two sides of a coin.
You might have observed a highly developed infrastructure, a grandiose mall, bustling crowds of call center employees in one specific area.
Yet, on the other side, you’ll see a group of informal settlers with kids roaming around on the streets.
Some are begging and some are selling anything to earn a dollar or two (Php 50–100) just to survive in a day.
By offering more job opportunities and skills advancement to ordinary Filipino citizens through government collaboration and support, you are helping raise your employees’ living standards and that’s making a tremendous difference to the lives of their families.
Helping ordinary Filipinos get by day by day.
The Philippines’ geographical location allows your business to operate on the other side of the globe, helping your customers’ concerns in their most available time.
The time difference between the Philippines and the US is approximately 14 hours, 12 hours in Canada, and 7 hours in the UK.
Australian, South Korea, and Japan have 1–3 hour differences only.
You can employ many remote teams in the Philippines as your product or service increases.
Thus, time zone variations can be helpful to most offshore companies as your business can operate round the clock, more time is spent on addressing your business strategies, and building more customers.
So hello from the other side.
Outsourcing remote talents around the world, not available in the local country, is one of the most sustainable business practices we have today.
Free trade, globalization, and digital innovation have made it more possible for even startups to scale their business in no time.
There are various BPO solutions in the Philippines offering support for:
Other services you can outsource are:
Thus, by outsourcing some tasks not entirely related to your product or service, you get to spend more time and focus on the core needs of your business so you can efficiently scale as you envision it to be.
Also collaborating with local enterprises such as the BPOSeats.com to rely on their expertise on labor laws, local business permits, employment contract, and other legal matters, offers you convenience and ease of expanding your outsourcing business to the Philippines.
Learn more about BPOSeats entire ecosystem of BPO solutions you might need!
Retiring to the Philippines can be a rewarding experience for expats and locals.
Also highly supported by the national government to attract foreign retirees to come to the country to study or invest and provide more socio-economic development.
Improved accommodation, more direct flights offered in major cities abroad, exceptional medical services, more fun, and genuine people, and affordable cost of living.
Wake up in the Philippines as you have a myriad of amazing places and cultures to explore with over 7,641 islands across the country:
Luzon Island
Visayas Island
Mindanao Island
BONUS: Try these things to experience more fun in the Philippines!
- Taste the sweetest mangoes 🥭
- Quench your thirst in Buko 🥥
- Explore more untouched islands 🏖😎🏄♂️
- Ride jeepneys
- Listen to taxis stereo 🚕🎼
- Huge shopping malls 🛒
- Pineapple plantation 🍍
- Taste sweet bananas, watermelon, durian & more! 🍌🍉
- Meet your future husband or wife 💑❤️🔥
Considering your lifestyle and or medical condition, you have more options to choose the best location to retire in the Philippines with your immediate family and friends.
For your business and leisure convenience.
Now get your offshore team to the Philippines and explore exciting and meaningful opportunities with your Filipino employees and until you consider retiring here.
Conclusion why Philippines is one of the most preferred BPO destination in the world
These are some of the top reasons the Philippines remain the top destination for outsourcing for BPO.
Affordability and affinity of western language and culture top the most advantages as it helps bridge quicker relations to your target customers’ needs.
And that doing business in the Philippines is supported by the government so you’ll feel safe and at home.
And for more information about how BPOSeats.com can help your office space needs for your team of freelancers or full-time employees, call us.
BPOSeats.com also streamlined its services to offer you efficient help in staff hiring, payroll, getting local business permits, and other related services so you can quickly get started.
So have you considered setting up your BPO solution in the Philippines now?
Let us know how BPOSeats.com can help you! Learn More!
Originally published at https://bposeats.com on July 2, 2021.
