Mention the Philippines to a foreigner and the top things that would probably come to that person’s mind are the tropical islands, gorgeous beaches, and pristine waters. But in recent years, the country has become more than just a tourist spot; it is now the poster child for outsourcing success stories.
In 2019, the Philippines’ Information Technology and Business Process Management (IT-BPM) industry generated a revenue of $26.3 billion, providing employment to 1.3 million Filipinos, The Philippine News Agency (PNA) says.
However, with COVID-19 affecting the globe, multiple sectors experienced slower growth in 2020, including the IT-BPM industry. Last year, the IT and Business Process Association of the Philippines (IBPAP) revealed the revenue outlook for the industry in 2020 would only be at $26 billion, according to the PNA. The good news is several reports say the industry should recover by 2022 with a revenue of $29 billion.
Is the Philippines Still A Good Outsourcing Destination?
Companies across the globe and across industries cite cost savings as the main factor that makes the Philippines an ideal outsourcing destination. In addition to its competitive labor cost, the country’s office rental rate is less expensive than anywhere else in the Asia-Pacific region.
However, the benefits businesses gain when outsourcing to the Philippines go beyond simply slashing costs. Other factors contribute to this Southeast Asian nation becoming the world’s premier outsourcing hub, and these include the following:
Highly Skilled Workforce
When it comes to the quality of labor force, the Philippines has an edge over most outsourcing countries. Each year, the country produces a large number of university graduates equipped with advanced skills in software programming, mobile app design, and animation, among other fields, and many of them are eager to enter the BPO industry.
The Philippines ranks as one of the largest English-speaking countries in the world. In fact, apart from Filipino, English is the nation’s official language. It is widely used across the country and even employed as a medium of instruction in many schools.
Affinity with Western Culture
As a result of almost 50 years of American colonial rule, much of the social, political, and educational system of the Philippines was patterned after the US. This makes Filipinos the most westernized people in Asia.
I have worked in the offshore outsourcing industry for over 20 years and I have worked in geographies including India, Russia, Mercosur, Mexico, Thailand, and the Philippines. And when faced with the decision of where to base the NarraSoft operations, the choice was easy…Manila. The culture is very western, the language skills are excellent and the workforce is full of excellent candidates across many technologies and competencies. It is also a beautiful island nation and a very fun place to visit!Phil Bartos, President and CEO of NarraSoft
With its cost-competitive and highly qualified workforce, the Philippines offers a wide array of outsourcing services. In the IT field alone, the country takes pride in its large supply of talented and hard-working professionals, which include software developers, web designers and developers, and game developers.
At NarraSoft, you have the opportunity to work with some of these experts.
Get in touch with us at email@example.com and let’s discuss how we can help you with your software, website, or game development outsourcing needs. You may also send us a message on our chat box or contact form. We’re excited to work with you!
Note: The relevant numbers in this article have been updated on 15 March 2021.