Outsourcing is a true representation of how globalization works. Today, you can place a phone call to ask for technical support about your DVD player, expect that you will be talking to someone in Sidney, and not realize that you spoke from somebody in the Philippines.

But why do businesses outsource? And if you have operations in Australia, what benefits can you expect outsourcing to the Philippines

Outsourcing to the Philippines

1. The Philippines Has a Huge Talent Pool

The Philippines is a hub of contact centers. For decades, it has been the go-to country of international business conglomerates as far as outsourcing. The Philippines is home to more than 1,500 colleges and universities.  Every year, the country produces at least 400,000 college graduates, many of whom are highly qualified to deliver a myriad of business requirements—from contact centers to graphic design to manufacturing.

2. Australia is Close to the Philippines

Outsourcing to the Philippines is beneficial to an Australian company because the Philippines is sitting on top of the Australian continent. The distance is only 4,417 kilometers or 2,745 miles. Travel time from Sydney to Manila will take only between eight to ten hours.

3. You Will Save on Labor Costs

The average pay in Australia, according to the Fair Work Commission, is $672.70 per week, which translates to roughly $2,690.80 per month. In the Philippines, the average salary in the top cities is only USD 450 per month. Australian businesses can expect to save a tremendous amount of money if they outsource in the Philippines.

4. Improve the Efficiency of Your Delivery

Australian SMEs have a lot to gain in outsourcing in the Philippines. Apart from the growing workforce, the Philippines has tens of thousands of experts who have been in the outsourcing industry for decades.

In the contact center niche, many Filipinos know that value of average handle time, customer satisfaction, and sales. These things are embedded in the Filipino psyche and are evident with how the output of Filipinos compare to other nationals.

5. You Will Save on Infrastructure Costs

Depending on the location, you may need to pay at least $65 per square foot per month in Australia. For a 50 SQM office space. This amount translates to roughly $6,000 a month. In Metro Manila, you can rent a space for a third of that amount. In fact, you do not have to rent an office space if you outsource to a company because this cost has already been accounted for.

And we are not yet talking about the cost of real estate taxes, computers, carpet cleaning services, water, power, and other utility bills. If you outsource to the Philippines, the infrastructure is ready. The only thing you need to jumpstart the job is to train the employees and set-up the software solutions in desktop computers.

6. You Will Minimize Risks

Australia is prone to natural disasters like cyclones and earthquakes. If these things happen, there is a risk that you may need to cut off operations. The Philippines also has its share of natural calamities, but the outsourcing community has learned valuable lessons in the past that makes them prepared to initiate redundancy plans. These strategies ensure that outsourcing operations are not severely impacted.

7. Leverage the Talents of Filipinos

The Philippines is not a single-skill country. The talent pool is a smorgasbord of specializations from IT, manufacturing, customer services, data analysis, technology, hospitality, human resources, sales, and so much more. With a talent pool of this magnitude, you can rest assured that what your needs are, outsourcing in the Philippines is an investment that will pay off over the long term.

Summary

The Philippines is the BPO capital of the world. It is second to none and is only closely trailed by India. You can trace the humble beginnings of this industry as far back as 1992. But it has grown to generate over 1.2 million jobs throughout the past three decades. For inquiries, write to bd@athl.com.hk.