The moment a firm shifts some of its business activities to a different country in order to save money, this is known as offshoring. The number of multinational firms desiring to relocate their operations to the Philippines has increased significantly. Let’s look at why it’s a popular choice among significant corporations:
The total cost benefits are one of the main reasons for Offshoring companies in the Philippines. The Philippines’ low cost of living means that typical salaries are lower than in the United States, Australia, the United Kingdom, Hong Kong, and Singapore.
Philippines professionals are also highly qualified and motivated. This offers a good level of service at a reasonable price.
In recent years, the Philippines has greatly improved its internet infrastructure. Key telecommunications companies such as PT&T and Globe Telecom provide high-speed internet access 24 hours a day, seven days a week, in major corporate centers such as Manila, Cebu, and Davao. Faster connectivity allows offshore enterprises to conduct their operations more efficiently and effectively to manage their personnel.
Furthermore, the Philippines’ superb transportation, water, and electricity infrastructure only add to the country’s reputation as a top-tier outsourcing destination.
The Philippines’ favorable rules and regulations help offshore businesses thrive.BPO and other outsourcing industries, which contribute significantly to the Philippine GDP, benefit from such pro-business legislation.
Businesses that establish themselves in these zones are eligible for tax breaks and other forms of investment support. The Data Privacy Act of 2012 safeguards all types of data, including sensitive client data essential for BPO and other IT services.
Filipinos are therefore well-versed in Western culture and ideals. As a result, the majority of offshore businesses from the US and Europe are a natural fit for the country.The majority of Filipino professionals speak English fluently and with a neutral, understandable accent. This is a major reason for the Philippines’ great success in the BPO industry.
Additionally, Filipinos are frequently easy to work with. They’re noted for their hard work ethic and for being reliable and conscientious. Because of these cultural features, Offshoring companies in the Philippines is an overseas employer’s dream.
Lastly, Stability in the Economy
The Philippine economy has remained relatively stable during economic downturns, averaging 5-6 percent growth in recent years.
Many global credit rating agencies evaluate the country highly for its investment prospects because of its stability. It gives international enterprises the confidence to invest in the country.
It also aids the local outsourcing industry in attracting more overseas clients and scaling up quickly.