What You Should Know About The Philippines

Key takeaways:

  • The Philippines is an Asian country with a population of more than 100 million people.
  • Its large English-speaking population makes it a BPO hub.
  • The country’s people are well-educated and highly skilled.
  • Cultural differences aren’t a big problem as their culture is compatible with the West’s.
  • Utilizing BPO from The Philippines isn’t complicated or surrounded by bottlenecks.
  • Outsourcing contributes significantly to the GDP of the country and is backed by the government.

The Philippines is a Southeast Asian country that is made up of 7,640 islands. The country boasts a diverse culture, which is accentuated by its fragmented geography. Over the years, The Philippines has become a Business Process Outsourcing (BPO) hub because of its large English-speaking population.

This island nation has a population of around 109 million, making it the world’s twelfth most populous country. Over 90 million of its inhabitants speak English as a second language. According to the English Proficiency Index in 2020, The Philippines ranked 27 in the world for English proficiency and two in Asia. English is the global business language and this country has worked hard to provide the world with a competent English-speaking workforce.

We take a deeper look at this vibrant nation to learn more about The Philippines. We’ll dive into its culture, education levels, and language skills. There is a reason The Philippines is a popular BPO destination and you will see why below.

What makes The Philippines great for offshoring?

The large population of this Asian country combined with the high English proficiency makes it one of the best sources of English-speaking staff for companies worldwide. Any company that requires offshoring expertise should place high importance on countries with a good command of English. The Philippines presents a unique advantage in that millions of people speak English fluently. Thus, hiring will be cost-effective.

The country’s economy has also seen dynamic growth in the last 20 years. The average annual growth between 2010 to 2019 was 6.4 percent which has moved the country from being lower middle-income to upper middle-income.

What you should know about The Philippines if you want to offshore

There are several great reasons to offshore in The Philippines. They include an English-speaking workforce, flexibility, and a compatible culture with the West. Take a look at the some of the country’s defining characteristics that make it so popular for BPO.

English proficiency

Many children in the country start learning English as soon as they start school. It is the primary language of instruction in schools. Businesses use English heavily as it is the international business language.

High education rates

In 2013, the Philippine government extended the country’s basic education cycle from 10 to 12 years which has been a major education reform initiative. Young students are given the opportunity to find great academic success working through mandatory schooling and most go onto attend one of the country’s prestigious universities.

A large, highly skilled workforce

The median age in The Philippines is 25.7. This translates to a young, exuberant country with an abundant workforce. Combined with a literacy rate of 98.2 percent, it’s easy to see why conglomerates and small businesses alike want to tap into this population’s workforce.

The workforce is flexible and adaptable

This Asian country has a flexible workforce. Hiring proficient workers doesn’t require a visa which means you can build an offshore team that you can scale up or down quickly and efficiently.

Such adjustments to the workforce requirements will not come with massive capital investment or infrastructural requirements. Businesses can hire highly qualified virtual assistants for short and long-term work.

A culture compatible with the West

The Philippines has been influenced by the Spanish, the Americans, and the Japanese. There is a mix of Western cultures felt today, which makes the modern Filipino culture unique and one that easily integrates with that of the United States and Britain. Besides the fact that Filipinos are social and hospitable people, they adapt very quickly wherever they go.

A rich BPO history

BPO has been growing steadily in this country over the years. It is estimated that The Philippines’ global share of the BPO industry by 2022 will reach 15 percent. Many companies worldwide find offshoring cost-effective and efficient, and The Philippines has already set itself apart as one of the best destinations for BPO.

The government backs BPO

The Philippine government has already recognized the critical role BPO plays in the country’s economy. It established Special Economic Zones and Philippine Economic Zone Authority (PEZA) to help create an environment conducive for BPO.

The country’s economy has been growing steadily over the past two decades, especially since the BPO sector became a mainstream industry. The people’s purchasing power improved, which helped the government appreciate the need to protect the industry.

Diligent, 24/7 work culture

Utilizing labor for your company from The Philippines can be done remotely depending on the task. The workforce there has adapted to being available 24 hours a day. The time zone you’re in doesn’t matter – you will find a qualified worker ready to handle your tasks.

Hiring remote workers is easy

As a company hiring, you have to appraise yourself with your local laws and regulations, compliance costs, and tax requirements. When you opt for offshoring, you are bypassing many of these hurdles. It doesn’t mean that The Philippines doesn’t come with its share of compliance laws and such, but once you familiarize yourself with them, you will find offshoring easy, efficient, and economical.

Let DOXA help you set up an offshoring team in The Philippines

The Philippines is one of the best places to start a business based on technological expertise, diversity, skills, and entrepreneurship opportunities. You may find it difficult to outsource certain services in your country but not in The Philippines. This country has a large, skilled, English proficient population that is highly comfortable with different cultures. Many people in the country have already aligned themselves with the international market, where BPO and working remotely have become common.

DOXA can help you tap into this amazing opportunity by helping you set up your offshore team in The Philippines. We differentiate ourselves from the rest of the industry by providing proprietary talent matching, process optimization, modern tech infrastructure, and business-friendly terms. Simply contact us today to find out more.

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