Start Outsourcing Your Business in the Philippines

Why Outsource in the Philippines

hand shake pinoy and americanAside from the growing number of tourists visiting the Philippines for its tourist attractions, outsourcing businesses also spread throughout the country due to some of the factors that help them become successful as they are now today.

Perhaps one of the growing industry in the country today is the Business Process Outsourcing (BPO) which is consist mainly of call centers; finance, logistics and accounting firms; legal and medical transcriptions companies; and companies offering software development and animation. As reported by the Inside Investor of the Department of Trade and Industry, the BPO sectors alone surpassed the $13 billion gross revenue mark for this year and expect them to hit the $15 billion at the end of the 2013. The BPO sector already provided a total of 730,000 jobs in the country. The increasing investments and the ever growing rate of workforce contribute much for the development of the country and the outsourcing businesses as well.

Certain factors contribute for the advantage of the Philippines as a potential area for outsourcing business compared to the other countries in Asia and in the world. These factors include:

  1. English Proficiency – most Filipinos are able to speak English fluently. Even those who are under graduate can communicate in English very well. And to add to that, the English accent of the Filipino speakers is neutral, enough for the native English speakers to understand them. This is due to the fact that the Philippines has been influenced by the Western Country since its occupation here. Most of the radio and television channels use English on their conversation; schools and government institutions prefer English as their mode of communication so it is not a surprise when Filipinos speak English language fluently.
  2. Increasing Numbers of Able Workers – there is an increase of graduate and under graduate students yearly who are able to work for these BPO companies.
  3. Low Cost of Expenses – a normal Filipino worker can work for a salary of $8 dollar per day. Even those students from highly reputable schools can work for only $300 dollars per month. The costs for office expenses such as rent, electricity, utilities, supplies and other third party services are very low.

Given these factors, the Philippines became the preeminent area among other countries when it comes on receiving these business outsourcing companies. It became also very clear that the BPO sectors are undeniably successful here in the country.

You will also have the same destiny as you open your business here in the country. With excellent planning on your part and competent workers here in our country, your outsourcing business will not only grow but will also be successful!

How to Outsource in the Philippines

Outsourcing in the Philippines is not complicated. The good treatment of the government alone to every outsourcing company in the Philippines is already a great credential for the more opportunities to outsource in the country.

But it is still not that effortless on your part. There are things to be considered and to be learned as you begin considering to outsource in the Philippines. Listed below are some of the simple tips on how you start your outsourcing business in the country:

  • Be familiar with the Philippines Labor Code.  The Philippines take good care of the satisfaction of both employers and employees, so it will not be that hard for you. However, some of the things you really have to be familiar with are the 13th month pay, or the additional one full and tax free month salary for your employees every December ; and the statutory holidays and special non-working holidays in the country. Statutory holidays demand 200% of daily rate when you ask your employees to work whole day on any of that dates and an additional 30% of the employees’ salary will also be given to them for the hour excess of the work. Special non-working holidays such as Maundy Thursday, Good Friday, the Ninoy Aquino Day (every August 23 or any day nearest to August 31st) and December 24th demand you to pay for your employees a full day payment, even if they did not show for work on those days.
  • Hire quality employees. Employing is a great game among companies. Even though the Philippines is blessed with competent workers, it will still take a great effort to choose among them who will fit to your expectations and what specific skills will be needed for the success of your business. Rather than roam around the streets, you can visit quality sites to help you locate the workers you are looking for. These sites include, Virtual Staff Finder, and the Job posting can also be a big help. You can post to sites such as or to non-profit service organizations like the Employment Resource Services of The Church of Jesus Christ of Latter-day Saints.
  • Train your employees. Filipinos can do multi-tasking and are dedicated to the work entrusted to them. Furthermore, it will be a great advantage once you train them of your company’s expectations and ways of handling the job.

About The Author: Romulo Natural have experience in journalism, especially in photojournalism, copyreading and headline writing. Working as a content developer in Eyewebmaster, clerk and a travel secretary for a non profit service organization.

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