Benefits of Outsourcing to the Philippines

The intention of this article is to assist those of you currently deciding on an appropriate geography for your software developmentmobile development or 3D digital art/animation needs. I have worked in the technology outsourcing industry for 22 years. These opinions are predominantly based on my experiences in China, India, Mercosur, Mexico, the Philippines, Russia, and Thailand.

The Philippines is an archipelagic country consisting of over 7,000 islands in Southeast Asia with a population of about 101 million people. Manila is the capital city and has a population of about 13 million. For the purposes of this review, I will be focusing on Manila; however, there are other outsourcing hubs including Cebu, Davao, and Bacolod among others.

1) English language skills – The Philippines arguably has the best English language skills in Asia. The vast majority of Filipinos have excellent spoken and written English skills. This is one of the key reasons the BPO and call center industries have flourished in the Philippines over the past ten years. These advanced language skills exponentially improve the ease of software projects and significantly reduces risk by eliminating most opportunities for miscommunication.

2) Western culture – The Philippines has had a very close relationship with the United States since World War I. Over the years the Philippines has embraced western culture and today they are the most westernized Asian country; while still maintaining their unique Asian heritage. It is an extraordinary combination and one that makes for an effortless and exciting work environment. And again, this similarity of cultures helps improve the ease of projects and significantly reduces project risk.

3) Price points – Labor rates, based on the current economy, are at very attractive levels in comparison to North America and Europe. Most companies can expect to see a significant reduction in costs for most senior level software developmentmobile development and 3D digital art/animation resources.

4) Work ethic and pride – The Filipino culture fosters a strong degree of pride in its people, which leads to an excellent work ethic amongst its graduates and professional workforce. I have worked with the Philippines for over 14 years and have always been very impressed by their character.

5) 600,000+ college graduates a year – There is a large pool of well-educated university graduates every year. And the diversity of technology skill sets is plentiful. The higher education system in the Philippines is very similar to western universities.

6) Beautiful country to visit for business or holiday – When a company decides to visit their virtual teams in Manila, they will be happy to find Manila is a large, vibrant metropolis with plenty of 5-star hotels, amazing restaurants, night clubs, historical sites and shopping centers. And when they venture outside the city, there are incredibly beautiful beaches like Palawan and Boracay… search Google Images for both of these right now! 😉

I hope this quick peek into the Philippine outsourcing industry is helpful. There is plenty more to consider. If you would like to speak live on Skype, feel free to reach out to me at phil@narrasoft.com

Phil Bartos is President and CEO of NarraSoft, an offshore outsourcing company based in Cary, NC. It’s 60-person software developmentmobile development and 3D digital art/animation studio is based in Metro Manila.