Many companies of all shapes and sizes have been taking advantage of outsourcing their workers to the Philippines. A remarkable part of the Philippines’ outsourcing patrons is comprised of businesses in the accounting and finance field. In the last 15 years, the BPO industry has bloomed all across Asia and the two countries have become known as the pioneers in the BPO region: India and the Philippines. This recognition makes the Philippines the principal stopping place for companies to outsource their business processing needs.
Many countries (such as the United States, United Kingdom, and Australia) prefer outsourcing in the Philippines as the country has been steady in administering quality and exceptional services. In the recent upsurge of the Real Estate business in the US in 2015, the Philippines is also ramping up fast as a leading destination for finance and accounting institutions outsourcing.
But since the Philippines possesses a profusion of highly skilled workers, heavier obligations that require finance and accounting expertise are also being outsourced to the country.
- Cost-Effective. This is the primary reason companies outsource part of their operations. The Philippines is a very low-cost country compared to other countries in Asia and the whole world. A recent study showed that the Philippines is one of the most cost-effective locations for finance and accounting solutions. Not only is the cost of labor typically half of what it is in progressive countries, but employers also do not have to pay for office space, equipment, taxes, etc. But the low labor cost does not mean that the services offered by the Philippines are inferior to some. As I mentioned above, Real Estate businesses have already joined the bandwagon and have certified to the efficiency and capability of Filipino employees.
- The state of English. The Philippines is recognized globally as one of the largest English-speaking nations with the majority of its population having at least some degree of fluency in the language. People choose to study a foreign language for many different reasons. For most Filipinos, studying English in the Philippines, they do so for career opportunities and job growth. English is widely used in the education field. It is considered as a major subject and is taught in the Philippines from grade one to college and is the medium of instruction in many schools. Due to the Filipinos strong command of the English language, several opportunities opened for their country. These opportunities are mainly: overseas employment, the outsourcing industry, and tourism.
- Workflow Strategy. There’s what we call a ‘follow the sun’ strategy. There will be a workforce behind you round the clock, doing their jobs while the rest of your world is sleeping. This means faster results equals early delivery. Outsourcing in the Philippines is very beneficial as these Filipinos are talented which means quality deliverable. It will be your offshore team that will be working for you while you are closed for the day. You will be waking up the next day with projects delivered. A study shows that the BPO Industry in the Philippines regularly ranks at the top of the service delivery quality surveys. Add this to an amazing work ethic. Filipinos are respectful by nature and it shows how they interact with clients. They also do not have any problem with regard to working under pressure for they are resilient.
- The Workforce. The population of the pHiHighly skilled workforce the Philippines has a large young population that is growing faster than the country’s dependent children and retired workforce. The median age of this young population is 23 years old. Beyond just resulting in an abundant supply of manpower, the statistics also amount to a highly educated workforce boasting a literacy rate of 97.5%. Every year, local universities and colleges produce addition of 500,000+ to the pool of skilled and qualified workers. As per experts, the Philippines will continue to benefit from this young and talented workforce in the coming years.
- Government Support. The BPO sector has grown to be a multi billion-dollar industry and has contributed to the country’s growth in terms of economy. For this reason, the local government made sure the industry will get strong support through regulations and incentives to choose the Philippines for its offshore operations. The Philippine Economic Zone Authority has been established to provide a venue of support to this industry as well as the Special Economic Zone. A Law called the Data Privacy Act ensures protection from unauthorized access and usage. The government also created courses to help individuals be prepared for emerging thousands of jobs in the BPO industry.