One of the main industries driving Philippines economic growth in the recent years has been the outsourcing industry. More companies the world over are looking to reduce operating costs and increase profits. As the Philippines political and economic scene stabilizes; its potential as the best outsourcing location in the world is being realized.
What makes the Philippines such a high value outsourcing location?
- Highly skilled inexpensive labor
- Ease of doing business
- Industry standards
- Friendly government investment laws
Highly Skilled Labor
The Philippines is the 3rd largest English speaking country in the world. One of the core values of the country is work ethic, many employees form a bond with their companies and are committed to the companies success. As far as value, the average wage for a business processing outsourced employee is around five hundred us dollars, which is significantly lower than the average wage in the US and even in other outsourcing locations like India.
Ease of Doing Business
The Philippines has received some negative publicity in the past for corruption and slow bureaucratic processes. When compared to the US, of course things like business registration seem more difficult. In the states, a company can be formed in 10 minutes online. The Philippines is still a 3rd world country and one cannot reasonably expect that things will move here at the same speed as in western countries, but compared to the Southeast region, the Philippines has some of the simplest corporate laws and procedures. If working with a competent lawyer or consulting firm (like Triple i Consulting) business registration can be completed with zero headache in as little as a few days.
Because the outsourcing industry has been firmly established in the Philippines, no company is re-inventing the wheel. The telcos, office buildings, employees, and affiliates are all aware of the needs of an outsourcing operation, call center, or bpo business. So when it comes to looking for staff and HR needs and in finding offices and equipment that are suitable for a company’s needs, there is a basis to go on.
Friendly Government Investment Laws
The Philippine government has created tax incentives for companies to invest and build businesses here, especially to organizations that setup outsourcing companies in the country. These incentives include VAT exemption, income tax exemption, employment of foreign nationals and many other preferential treatment for certain government bodies.
With all of these reasons, companies must consider outsourcing some parts of their organizations to drive profits.
If you are interested in setting up an outsourcing business in the Philippines, Contact Us for more details and information.