It is already proven that outsourcing is not only a cost improvement strategy but a growth strategy as well. But when it comes to choosing the best provider, the Philippines has consistently delivered exceptional results. PH President himself, Benigno Aquino III, claimed, “I am confident that, in the future, countries around the world will be looking to the Philippine example to see how we managed to achieve such striking success and become a global industry leader in just a short number of years.”
Here are some of the reasons even several Fortune 500 companies have decided to build an offshore team in the Philippines:
- Strong Economic Growth
The Philippines is set for a steady economic growth this year as it becomes one of the fastest emerging markets in Asia. In fact, the revenue contribution of the Information Technology – Business Process Outsourcing (IT-BPO) sector may soon overtake OFW remittances in terms of its relevance to the country’s economy. It is expected to grow by 14% to 20% these coming years.
- Unwavering Government Support
Moreover, the initiatives of the government contribute to its continuous development. There are subsidised training for applicants through Technical Education and Skills Development Authority (TESDA). Courses offered include short courses, business communication, medical transcription, 2D and 3D animation and healthcare coding.
- Availability of Highly Competitive and Educated Workforce
With a literacy rate of 97.5% and a business English index of 7.11, the Philippines is poised to become globally competitive. English is one of the official languages of the Philippines. They have a neutral to westernised accent stemming from their exposure to the Western culture which makes them more compatible than other Asian markets. They also value education because it is a requisite for landing a job. Basically, there is a large pool of skilled workforce in the country that are eager to enter the BPO industry.
- Cost Effective
The lower cost structure in the Philippines is one of the factors that lure foreign countries to outsource here. The salary of accountants here is less than a fifth of what their Western counterparts receive, but the quality of their work matches or even surpasses what others offer. You will surely get MORE than what you pay for.
Moreover, the cost of living in the country is reasonably inexpensive but constantly improving. While tax rates are generally high in the Philippines, the government has extended fiscal and non-fiscal incentives to outsourcing companies. A notable example includes the tax and duty incentives entitled to registered firms within special economic zones like Clark and Subic.
Filipinos have a good employment retention record and strong work ethic. When you outsource your work to the Philippines, you will have a dedicated staff that will render service exclusively for you. Since the issue of time difference is minimal to none, it will be one less thing to worry about. You can also be sure that your work is in professional hands. Delegating your non-revenue generating tasks to them means you can accomplish more and add value to your client services.
The Outsourced Accountant helps accounting firms from all over the world grow their capacity, margins and profits through global outsourcing. Contact us to find out more about how we can help your firm.