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How to maximize the benefits of outsourcing to the Philippines

Written by on February 19th


Discover the benefits and challenges of outsourcing to the Philippines: cost savings, skilled workforce, cultural affinity, and Enshored’s solutions to common drawbacks.

Outsourcing to the Philippines offers businesses numerous benefits, including English proficiency, a skilled workforce, and cultural compatibility, enabling 24/7 operations with empathy and a strong work ethic.

Are there challenges? Yes — but we’ll show you how Enshored offers solutions other BPO firms can’t deliver, turning those drawbacks into strengths for your business.

Advantages of Outsourcing to the Philippines

Outsourcing to the Philippines has become a strategic approach for businesses looking to optimize operations and drive growth. The benefits extend across various dimensions, from cost savings to cultural compatibility. Here’s an expanded look at the pros of outsourcing to the Philippines.

1. Cost Efficiency

The Philippines offers one of the most competitive pricing structures in the global outsourcing market.

This cost advantage is not just about lower wages but also includes reduced overhead costs for businesses. By outsourcing to the Philippines, companies can save on:

  • Infrastructure
  • HR
  • Operational costs

This allows businesses, especially small to medium-sized enterprises, to leverage services and expertise that would otherwise be costly in their home countries. The savings can then be reinvested into core business areas, driving further growth and innovation.

2. English Proficiency

The Philippines is recognized for its high level of English proficiency, a legacy of its American colonial history.

English is one of the official languages and is the primary medium of instruction in schools and universities. This linguistic capability ensures that communication barriers are minimal, making it easier for businesses to manage customer service, technical support, and other business processes.

The workforce’s ability to communicate effectively in English is a significant advantage in global markets, particularly for companies targeting English-speaking countries.

3. Educated Talent Pool

The Philippine educational system produces a large number of graduates annually, equipped with degrees in information technology, engineering, healthcare, and other fields critical to the global outsourcing industry. The workforce is not just educated but is also known for its adaptability and eagerness to learn, making it easier for businesses to train employees on specific skills or platforms.

This educated talent pool is a vital resource for companies looking for knowledgeable and skilled professionals ready to contribute to complex projects and innovative solutions.

4. Cultural Compatibility

Filipino culture is characterized by its openness and adaptability, making it highly compatible with Western values.

This cultural affinity facilitates smoother interactions and integration with international teams. Filipinos are known for their hospitality, flexibility, and resilience, traits that are highly valued in business environments.

Plus, this compatibility extends to professional work ethics, making it easier for businesses to align their operations with global standards and expectations.

5. 24/7 Operations

The geographic location and flexibility of the Filipino workforce make it ideal for businesses needing round-the-clock operations.

Companies in different time zones can rely on Philippine-based teams to provide continuous service, ensuring that customer support, back-office tasks, and other critical operations are always active. This capability is particularly beneficial for businesses in the IT, customer service, and healthcare industries, where 24/7 availability can be a competitive advantage.

6. High Empathy and Strong Work Ethic

Filipino workers are renowned for their high level of empathy, a trait that significantly enhances customer service and care-related tasks. Their ability to empathize with customers and provide compassionate service improves customer satisfaction and loyalty.

Additionally, the strong work ethic in the Filipino culture, characterized by diligence, loyalty, and a high sense of responsibility, contributes to high productivity levels and team cohesion.

7. Stable Economy and Government Support

The Philippines has a stable economy, with consistent growth rates and a government that actively supports the outsourcing industry. The government has implemented policies and incentives to attract foreign investment in the outsourcing sector, including tax holidays, non-fiscal incentives, and infrastructure development.

This supportive environment reduces operational risks and provides a reliable framework for businesses to establish and expand their outsourcing operations in the country.

8. Legal System Familiarity

The legal system in the Philippines is closely aligned with Western principles, especially those of the United States, making it easier for Western businesses to navigate corporate, intellectual property, and data privacy laws.

This similarity:

  • Simplifies compliance
  • Reduces legal risks
  • Ensures operations adhere to global standards

The ease of legal integration facilitates a smoother setup and operation for companies outsourcing to the Philippines, providing a secure and trustworthy environment for their business activities.

9. Innovative Technology Adoption

The Filipino outsourcing sector is known for its rapid adoption of technological innovations, including cloud computing, artificial intelligence (AI), and automation tools.

This technological agility allows outsourcing partners in the Philippines to offer sophisticated services, such as data analytics, software development, and digital marketing, in addition to traditional customer service and back-office support.

Companies partnering with Filipino firms can leverage these technologies to improve their operations, enhance service delivery, and stay competitive in digital transformation trends.

10. Resilience and Crisis Management

The Philippines has demonstrated remarkable resilience in the face of natural disasters and global economic fluctuations. The outsourcing industry, in particular, has shown its ability to maintain operations and quickly adapt to changing circumstances, ensuring business continuity for global clients even in challenging times.

This resilience is supported by robust disaster recovery and business continuity planning among outsourcing providers in the country. Companies outsourcing to the Philippines can benefit from this reliability, knowing their operations are less likely to be disrupted by unforeseen events.

The Philippines Advantage

Expanding outsourcing operations to the Philippines offers a blend of strategic advantages, from economic efficiency to cultural and operational synergies. Businesses leveraging these benefits can achieve significant improvements in service delivery, operational efficiency, and overall competitiveness in the global market.

Disadvantages of Outsourcing to the Philippines

Outsourcing to the Philippines comes with its set of challenges. While many of these disadvantages are downsides of outsourcing anywhere — not just the Philippines — they’re important to cover nonetheless.

The good news? Enshored solves all of these headaches.

1. High Turnover

Challenge: The outsourcing industry in the Philippines, like in many other regions, can suffer from high turnover rates. This instability can lead to disruptions in service and added costs for training new employees.

Solution: Enshored combats this issue by fostering a workplace culture that values, rewards, and invests in our employees. This approach has led to an ultra-low attrition rate of 21% in 2023, significantly lower than the industry average. By focusing on employee satisfaction and career development, Enshored ensures continuity and reliability in service delivery.

2. Quality Control

Challenge: Ensuring consistent quality across services is a significant challenge, especially when dealing with complex tasks or large volumes of work.

Solution: Enshored addresses quality control through rigorous training programs, continuous monitoring, and a dedicated process of continuous improvement. This ensures that all services meet the highest standards, maintaining consistency and excellence in output.

3. Time Zone Challenges

Challenge: The geographic distance and time zone differences between the Philippines and clients in the US, Europe, or other parts of the world can complicate coordination and timely communication.

Solution: Enshored operates 24/7, offering flexible schedules to ensure that they can serve clients efficiently, regardless of time zone differences. This approach guarantees that Enshored’s teams are always available when their clients need them, ensuring seamless service delivery.

4. Data Security and Privacy

Challenge: With increasing cyber threats and stringent data protection regulations, ensuring the security and privacy of data is paramount.

Solution: Enshored employs the latest in security technology and adheres to strict protocols to safeguard client data. By meeting or exceeding industry standards for data security, Enshored ensures that clients’ information is protected against unauthorized access and cyber threats.

5. Infrastructure Challenges

Challenge: Reliable infrastructure is crucial for uninterrupted service delivery, but this can be a concern in some outsourcing locations.

Solution: Enshored mitigates this risk by investing in state-of-the-art facilities and technology. This infrastructure ensures that our operations are reliable, resilient, and capable of supporting clients’ needs efficiently.

6. Remote Management Issues

Challenge: Managing remote teams, especially across borders, can introduce complexities in communication, project management, and alignment with company culture.

Solution: Enshored simplifies remote management by facilitating effortless communication and constructing custom-built teams that embody entrepreneurial thinking. This ensures that teams are not only easy to manage but are also aligned with the clients’ business objectives and work culture.

7. Local Labor Laws

Challenge: Understanding and complying with the Philippines’ labor laws can be daunting for foreign companies, with risks of non-compliance adding to the complexities.

Solution: Enshored’s expertise in local labor laws ensures full compliance, thus minimizing legal risks and ensuring smooth operations. This legal compliance is integral to Enshored’s operational strategy, providing peace of mind for our clients.

8. Inconvenient Business Travel

Challenge: For some clients, the necessity of frequent travel to the Philippines for meetings or oversight can be inconvenient and costly.

Solution: Our global reach and multilingual support minimize the need for physical travel. Advanced communication tools and platforms enable clients to connect with their outsourced teams virtually, making face-to-face interactions unnecessary.

9. Loss of Business Control

Challenge: Entrusting operations to an external provider can lead to concerns about losing control over business processes and standards.

Solution: Enshored operates as a partner, ensuring clients retain control over their outsourced operations. Through transparent communication, customization of services, and regular updates, clients remain in the driver’s seat, guiding the direction and priorities of the outsourced functions.

Your outsourcing solution

Enshored’s approach to addressing these common outsourcing concerns demonstrates our commitment to providing superior service while minimizing the potential drawbacks of outsourcing. By tackling these challenges head-on, Enshored ensures that clients can enjoy the full benefits of outsourcing without the usual downsides.

Outsourcing with Enshored is a Win-Win

Outsourcing to the Philippines presents a compelling opportunity for businesses to scale efficiently while ensuring high-quality service delivery. While there are challenges, Enshored’s unique approach and solutions turn potential drawbacks into advantages, making us the ideal partner for businesses seeking to outpace the ordinary.

With Enshored, you can stretch your budget without stretching your bandwidth, leveraging a partnership that grows with you, ensuring all your outsourcing needs are met under one roof.

Ready to take your business to the next level? Contact us today, and let’s chat about your project.


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