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A Powerhouse for BPO Companies: Virtual Assistants in the Philippines

by Jocelyn Fernandez in Benefits, General, Online Marketing

The Philippines is a well acknowledged country when it comes to workforce especially in the BPO (Business Process Outsourcing) industry. In fact, ESEAN Briefing (2017) indicated that the Philippines beat Mumbai as the “2nd ranking BPO destination”. In addition, Global Innovation Inc. (2017) phrased in one of their articles that “the country (Philippines) remains to be an attractive place for investors to outsource some of their services.” A number of studies have also supported these acknowledgements which leads us to the question “What makes the Philippines a competent country in the BPO industry?”

While one can think of several reasons why the Philippines has become the BPO hub in Asia, studies have pointed out the most common ones. Below are four of the most common reasons.

Low Cost of Labor

With around $9.00 minimum wage per day (NWPC, 2018), this is only a small percent compared to minimum wages in developed countries such as in Europe and USA (Medium, 2017). Not only that, office spaces, materials and legal costs are also a lot less expensive in the Philippines. This factor has become really attractive for investors especially when they’re well aware that the cheap labor has not resulted to poor quality of performance.

 

Highly Competent Workforce

In several cases, quality and outcome is often correlated to “how much money are we talking about?”. While this may be true, investors were not threatened by this phenomenon when investing in the Philippines at a very too-good-to-be-true price because they have witnessed the competency of Filipino workers. BPO companies choose to outsource Filipino workers because of their fluency in English. Not only that, literacy rate is also as high as 95% (National Statistics Office, 2010, as cited by the International Literacy Association, 2015) which makes Filipinos great candidates for employment.

“Superb” Work Ethic

Just when you thought things couldn’t get any better than having competent employees, you then discover they have excellent work ethics. According to Philstar Global(2014), a Melbourne based SEO Service chief officer, David Jenyns, prefers to have Filipino employees because of their great value and “superb” work ethic. They only insource “A-players” or excellent performing contractors as a permanent part of their company and most of those employees are Filipinos. In addition, Expat Explorer Survey 2011, as cited by Philstar Global (2012), ranked Philippines as the 8th friendliest country in the world. They are warm, hospitable and they value camaraderie (Manila Recruitment, 2016). Talk about making the most out of your money, what more could you ask for? Filipinos are great competitors in the global market.

 

Government Support

The Philippine government saw potential in Filipinos’ abilities and how much they can contribute to the economy thus it initiated ways to support the growing industry such as the “creation of the Department of Information and Communications Technology through RA 10844” (Medium, 2017), the revision of Special Economic Zone Act, or RA 7916, and  establishing a government agency, PESO (Public Employment Service Office), in which it assists job seekers find a job. All were made to benefit both the investors and the Filipinos. Government support is one way of showing welcome to potential investors. It is one way of saying that “we have prepared a good future for your company”. This initiative indicates a country’s promising economy.

 

Booming Economy

According to Rappler (2018), Lisa Grace Bernales, a national statistician, announced on May 10 that the Philippine Gross Domestic product grew by 6.8% in the first three months of the year. It indicates that the Philippines has a strong government which is a great deal for foreign investors. Investing in an economy that has a remarkably rapid economic growth would mean stability for the business, security and a long term stay and partnership with the Philippines.

 

Out of so many reasons why foreign investors choose Philippines, low cost of labor, highly competent workforce, superb work ethic, government support and  the booming economy are the major factors. These factors make the Philippines a powerhouse for every BPO company who aims to get the best out of their investment. It has been proven for years already and every year more and more investors are coming. Great opportunity for the companies and their Filipino workers. EVERYBODY WINS!

Looking for Filipinos to outsource and do admin tasks and designs for you? One excellent BPO company you can hire is MyOwnVA. Contact us now!

 

 

 

 

 

 

 

 

 

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