Benefits of Outsourcing To The Philippines
The Philippines boasts a 97% literacy rate, and 600,000 people graduate from university each year, twice the number of people that graduate an Australian university. Thanks to exceptionally low living costs in the Philippines, staff and occupancy expenses combined are approximately 70% lower than in Australia and the US, so you can drastically reduce your operational costs.
The benefits of outsourcing to the Philippines are widely recognized, and include:
Cost savings: The hourly rate for many skilled professionals in the Philippines is significantly lower than that in developed countries like the United States and the United Kingdom, leading to major cost savings for companies [3,].
Above-average English proficiency: Filipinos are known to have a high level of proficiency in English, which eliminates the language barrier that is often a concern with outsourcing to other countries.
Improved processes and services: Outsourcing to the Philippines can help companies instantly improve their business processes and increase economic growth .
Tailored employee benefits: Companies can customize employee benefits in a cost-effective manner when outsourcing to the Philippines .
Popular among small and medium-sized businesses: The Philippines is a popular outsourcing destination for small and medium-sized businesses, who see it as a way to take their business to the next level .
Forecast Data for Outsourcing to the Philippines & beyond after 2023
The projections and growth rates for various outsourcing service types found in the results:
Business Process Outsourcing (BPO) is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.4% from 2023 to 2030 and was valued at USD 261.9 billion in 2022 .
Contact Center Outsourcing Service market size is projected to reach USD million by 2026, with a CAGR of % during 2021-2026.
The global outsourcing market is projected to reach $10 trillion by 2022.
United States DevOps Outsourcing Service market is expected to be valued at USD million in 2023 and grow at approximately percent CAGR during the review period.
The global IT outsourcing market is expected to grow by $98 billion from 2020 to 2024, expanding at a CAGR of 5% .
The global revenue of Business Process Outsourcing and Information Technology Outsourcing amounted to around 92.5 billion U.S. dollars in 2019 .
Engineering Services Outsourcing market is expected to expand at a compound annual growth rate (CAGR) of 24.6% from 2022 to 2030 .
Enter BruntWork, the Remote Only Outsourcing Firm
We’re experts at building cost-effective efficient and scalable operational teams for businesses wanting to grow fast and effectively. Since 2010 we’ve recruited and trained hundreds of staff to work in The Philippines on behalf of our clients.
Why The Philippines?
Outsourcing to the Philippines has become increasingly popular in recent years, as businesses seek to take advantage of the country’s strong economic growth and low labor costs. The Philippines is now the world’s top destination for business process outsourcing (BPO), accounting for nearly one–fifth of the global BPO market.
How Big Is Outsourcing In The Philippines?
Nearly $30 billion could be contributed by the outsourcing market to the Philippine economy each year as employment grows by 8-10% annually. The sector was among those able to operate remotely during the pandemic. The Philippines’ BPO industry has been growing rapidly, with revenues increasing from just $267 million in 2004 to an estimated $30 billion in 2022. This growth has been driven by a number of factors, including the country’s large English–speaking population, strong work ethic, and favorable time zone.
Remote Work Is The Future
In recent studies, outsourcing in the Philippines is 64% remote work and 36% on-site, however hundreds of companies have now implemented 90 to 100% remote working arrangements. BruntWork is one of the new breed of remote only outsourcers, ensuring all agents are set up with everything they need to work successfully from home.
What are the opportunity areas?
The World Bank said that the BPO sector in the Philippines could benefit from providing value-added services and implementing institutional policies. In a report, World Bank wrote that the industry could have stronger prospects for revenue growth and job generation if it strengthens its analytics and artificial intelligence verticals. Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand, said that countries that have leveraged their strengths in specific tasks and roles in manufacturing, services, and export at scale create more jobs and reduce poverty faster.
How big can I scale in the Philippines?
While BruntWork might be the leading “remote only” outsourcing firm globally, Concentrix was recognized as the biggest IT-BPO employer in the Philippines, with over 90,000 full-time employees (FTEs). So there is really no cap on how large you can grow, with the Philippines population in excess of 110 million. In a top-five IT-BPO employers list created by Colliers, Concentrix reportedly expanded and grew amid the pandemic, generating $1.34 billion in its Philippine operations.
The Philippines drives major cost savings
Cost savings is one of the most important benefits of outsourcing to the Philippines. Labor costs in the Philippines are significantly lower than in developed countries, such as the United States and United Kingdom. For example, the average hourly rate for a BPO worker in the Philippines is just $4, compared to $17 in the United States. This can lead to significant cost savings for businesses that outsource their BPO operations to the Philippines.
Skilled Labor In Abundance
In addition to cost savings, businesses also gain access to skilled labor when they outsource to the Philippines. The country has a large pool of English-speaking workers with college degrees and technical skills. This makes it easier for businesses to find workers with the specific skills they need.
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Let us know how we can help your business grow.