Why Australians Should Outsource to the Philippines

Many companies have been utilizing Business Process Outsourcing (BPO) companies for a number of reasons. Because outsourcing is effective and efficient, many industries have been taking advantage of offshoring. From cost cutting, improved productivity and output, enhanced company focused and flexibility, companies who outsource are able to improve their businesses.

While there are many factors to consider when outsourcing, the number one factor that significantly contributes to a success of an enterprise is the abilities and skills of a candidate. Talented professionals who are deployed to various organizations must thoroughly undergo screening and recruiting process.

Booming call center agencies in the country have produced a significant number of Filipino talents who possess exceptional skills from communications to technological disciplines. Recently, the Philippines has been dubbed Call Center Capital of the World” by Transcom Philippines. Supported by the government and with exceptional training facilities, Filipinos are now becoming BPO assets to foreign countries. Because Filipinos are gaining more and more access to international relations, more talents are being produced every day to compete with international work standards.

Today, Filipinos are making waves in the industry of outsourcing. Because Filipinos are skilled with multiple talents, BPO companies in the Philippines are targeted by foreign companies. Known for excellent communication skills, Filipinos also possess a good command of English.

Here are some of the main reasons why Australia should join other foreign companies and outsource to the Philippines:

1. Literacy Rate

   

   The Filipino literacy rate has risen over the past 10 years, improving an enormous rate from 92.3% to 97.6 % in the year of 2010. Influenced by various colonizers from Spaniards, Japanese, and Americans, Philippine education heavily adapted foreign education system particularly western practices. Since then, the Philippine government has put extreme importance on education. Both men and women were given equal opportunities in acquiring a proper education. At a young age, most Filipino children are already being sent to school. And because of foreign colonizers, we have adapted mostly to their education system and Filipinos quickly absorbed the English language, allowing for better communication with foreigners. Today, the Philippines is now an English speaking nation. In the year of 2013, Commission on Higher Education (CHED) has issued a memorandum stating that Philippine universities no longer require a Filipino Language instruction.

   Because of high English literacy rate in the Philippines, Filipinos can work side by side foreign businesses. Articulate and well-versed, there is no language barrier. Also, English is the second language of Filipinos making it easy for both parties to communicate and understand each other.

2. Time Zone Similarities

   

   Time zone has often become one of the main business barriers when conducting businesses overseas. While outsourcing activities have been increasingly becoming popular, there are still many limiting factors to consider when outsourcing overseas. One factor is the time zone difference between countries.

   Australian time zone is just two hours ahead of the Philippines. Because of this minimal difference, both Australian and Filipino parties can collaborate with a project without a hassle. A simple Skype meeting or a conference call will do. Plus, it only takes a 6-hour flight from the Philippines to Australia. With this close similarity, Aussies can just as easily work with Filipinos without communication barriers.

   In any business transaction, it is essential that communication is constant. Because geographically the Philippines is located near Australia, communicating with one another should not be a problem.

3. Cultural Similarities

   

   Filipinos are known for a lot of positive attitude including hospitality, resilience, creativity, resourcefulness, honesty, and commitment. All these traits are highly positive and can increase foreign work relations, especially between Australians and Filipinos. Because Filipinos are highly understanding, any miscommunications can be resolved within a matter of minutes. Similar with Australians, a laid back attitude is highly evident among their culture. Whenever disaster or tragedy breaks, Australians are able to keep a cheerful façade. Their “no worries” outlook in life has resemblance with Filipinos’ quick resilience whenever tragedy occurs. Australians might express disappointment toward a particular issue, but after an issue has been resolved, they never hold it against the person. With this positive outlook in life, Filipinos and Australians can have a harmonious work relationship. Australians too value honesty. With their deep regard for honesty, they look down upon dishonest people especially corrupt government. Similar with Filipinos, they too are disgusted with corrupt nation. With these two similarities and positive outlook in life, both Australians and Filipinos can have a healthy work relationships. With Filipinos positivity, Australians should not have any problems with them from work ethics to personal attitude.

   It is vital to any business transaction to have an understanding of cultural differences to avoid any misunderstandings and arguments. Because Aussies and Filipinos have close similarities in culture, working together should be just fine. Furthermore, the Filipino’s positive attitude allows for a bright and friendly relationship with Australians.

4. Cost Savings

   

   Because the cost of living in the Philippines is relatively lower than that of Australia, outsourcing can help with cost cutting. One of the main reasons why a company outsource is to cut cost. By outsourcing from the Philippines, Australian companies can benefit from our low standard of living. Even though, Filipino talents cost less, their work output and performance are still on par with international standards. Known for producing effective and efficient work output, Filipinos are meticulous and quality driven. Because of this trait, Filipinos attract many foreign companies to outsource Filipino talents. Labor costs in the Philippines are much cheaper as compared to other Asian countries, because of this, Filipinos are good candidates for offshoring.

   In addition, rising BPO industries in the Philippines has also prepared Filipinos to adapt in foreign cultures. Because of this rise, most international companies resort to BPO. With years of dealing with foreign clients, Filipinos became well-versed in interacting with foreign businesses which can also be utilized by Australians.

5. Quality Education

   

   Quality education is prevalent in the Philippines. Top universities of the country produce high caliber candidates and professionals who end up having a high position in top management level of an enterprise. With the right qualifications and high standards, Filipinos are able to pass overseas standards. Because Filipinos are able to graduate from college, specialized skill is readily available for offshoring. Filipinos who graduate from college take special courses depending on their preference- usually a four year course under 2 semesters. With this type of schooling, many Filipinos are able to gain extensive knowledge on a particular skill set, allowing them to perform well in various company culture. Offshoring then, becomes a perfect option for Australian companies to utilize.

6. Readily available talent

   

   The rise of BPO industry in the Philippines, has produced a wide range of readily available talents for outsourcing. Because of this, many Filipinos have become exposed to the world of foreign businesses. In addition, Filipino talents can keep up with international standards, making them perfect candidates to work with Australians. Through BPO companies, Filipinos have become familiar with international businesses- the way they operate, their policies and procedures. Furthermore, the Philippine government offers support to local BPO companies by broadening tax incentives for foreign investors, believing that BPO industries will continue to grow in the upcoming future. Through this, Australians can maximize overall business performance.

7. Access to technology

   

   BPO industries access a wide range of technology solutions, including cloud computing, business intelligence solutions, enterprise application and business analytics software. Because all of these require IT expertise, Filipino talents are becoming more conversant with these technological advancements. Foreign countries like Australia can maximize their organizations’ performance by utilizing Filipino talents who have increased IT knowledge and solutions.

   Filipinos have been exposed to a wide selection of technology. With booming foreign industries in the country, Filipino talents have become prevalent over the cities. Because of the rise of BPO industries in the country, increasing talents of Filipinos overflow. Many foreign countries, including Australia can now fully utilize Filipino talents for offshoring.

Many foreign companies resort to outsourcing to improve overall enterprise performance. Because of its many perks such as improved productivity and efficiency, enhanced company focused, reduced overhead costs, and time saver, it has become an effective tool for companies to utilize.

In recent years, the Philippines has been one of the leading call center hubs in Asia, next to India, increasing Filipino worth in the eyes of foreign investors. Because of this, Filipinos have become BPO assets among foreign countries qualifying them for offshoring.

Particularly, Australians should outsource to the Philippines because Filipinos do not only excel in all aspects of technological discipline, but also, culture and time zone similarities of both countries can provide a seamless communication between the two, as well as a high Filipino literacy rate, especially in English language, and quality Philippine education have proven that Filipinos have the competitive edge over other countries for outsourcing.

Do you have any other tips on why Australian should outsource to the Philippines? Do you think outsourcing is the way of the future? Let us know your thoughts about this and comment your suggestions below!