Top 7 Reasons Why the Philippines is the Ultimate SME Offshoring Location

Top 7 Reasons Why the Philippines is the Ultimate SME Offshoring Location

2BInteractive | March 28, 2017

Whenever we meet with a new client, one of the first (and most common question) we get asked is why the Philippines? We love the question, because it is an easy one to answer.

For the past 10 years, the Philippines has remained one of the top choices for large corporations as well as SMEs for offshoring - particularly in Business Process Outsourcing (BPO) - growing in strength for the past 10 years with an annual growth of 46% since 2006. It has also become a popular offshoring country for entrepreneurs and startup companies who are looking for just one staff member or to an organization looking build a remote team.

So why is the Philippines a great place for offshoring? Here are our top 7 reasons.

  • Cultural Compatibility – The Philippines has long held a cultural connection with western customs and traditions, with a strategic geographical location that is deal for western counties looking to offshore.
  • Superior English language skills – The Philippines is the third largest English speaking country in the world (in terms of English speaking population). Filipinos themselves are known to be exceptional English speakers, as evidenced by their high Business English competency score of 7.95, the highest in the world, based on the 2013 Business English Index (BEI) report from GlobalEnglish.
  • Quality infrastructure – The Philippines has invested heavily to claim the mantle of having the best telecommunications infrastructure in the Asia Pacific region. The existence and continuous additions of high-rise buildings in the country’s business districts prove that the Philippines is at par with the Western countries in terms of telecommunications, power, and technology. That said, you are assured that high productivity is achieved and projects will be completed on time.
  • Lower wages – The cost of labour in the Philippines is significantly cheaper compared to western nations and remains one of the lowest-cost offshoring destinations in the world. In fact, the potential savings can reach up to 70 percent.
  • Commendable work attitude – Filipinos are known to be hard-working, loyal, friendly, optimistic, and respectful. They value integrity in their work and show their appreciation to employers through high-quality output. Whatever project you assign to them, they never fail to exhibit their expertise and training in the fields.
  • Minimal to zero-hour time difference – Depending on where you are located in Australia, the time difference from the Philippines is negligible (from zero (AWST) to a two-hour time difference (AEST)). This means that working with a remote staff during Australian business hours is not a problem because there is no time issue at all.
  • Government recognition – The Philippine government is strongly supportive of offshoring businesses because it remains one of the biggest drivers of the country’s economy. Offshoring is seen as a win-win for all, both business investors and local workers alike.

Drop us a line if you have questions related to offshoring or our even looking to discuss your options.