The Business Process Outsourcing (BPO) industry has been on a progressive trajectory and forecasts indicate that there’s no stopping it. Statista reported that, in 2024, it is projected to reach US$0.39 trillion in revenue. By 2029, with a CAGR of 4.67%, the BPO market volume will grow to US$0.49 trillion.

Factors contributing to outsourcing’s significant growth include the following trends:

When it comes to outsourcing, the Philippines stands out as a prime destination. Offshore staffing services in the Philippines have become more expansive in terms of skills and expertise. It’s not just “the call centre capital of the world” anymore. More specialised talent, particularly in the fields of healthcare, finance, and legal services, are in high demand and the country has much to offer at more affordable rates. As a result, there are now around 1,000 BPOs in the Philippines employing a highly skilled workforce of 1.5-1.6 million.

Here are the key advantages and cost-saving benefits that make outsourcing to the Philippines the preferred strategic choice to hire remote teams of high-quality talent.

Another point to consider is that employment costs are commensurate with a country’s standard cost of living. Given that basic living expenses are much lower in the Philippines compared to Australia, it’s no surprise that the salary difference is considerably significant. However, it’s important to note that the salary ranges in the Philippines are at competitive rates within their local job market.

For example, the average salary range of accountant jobs in the Philippines and Australia is as follows:

*According to Seek as of September 2024

The Philippines is consistently among the best countries for outsourcing. Aside from cost efficiency, a key advantage of outsourcing to the Philippines is its wide range of highly skilled talent. Filipino professionals possess a solid educational foundation that provides extensive opportunities for skill development in various fields.

The Philippines currently follows the K12 educational system which forms the bedrock of their learning experience. An important aspect of this system is that it equips students with basic technical and soft skills that will enable them to land a job, even if they are unable to reach tertiary-level education (college or university levels). This empowers graduates to quickly become productive members of society, strengthening the country’s talent pipeline in the process.

The K12 system also opens up opportunities for students to take more interest in science, technology, engineering and mathematics (STEM) courses. Government agencies such as the Department of Education and the Department of Science and Technology have been proactive in establishing scholarship incentives and partnerships with STEM-related international institutions to encourage students to pursue a career path in these sectors. Through this endeavour, the Philippines can build a future-ready workforce that can adapt to fast-paced advancements in these highly technical fields.

The IT and Business Process Association of the Philippines (IBPAP) is the “primary industry association and advocacy group of the country’s agile, dynamic, and resilient IT and Business Process Management (IT-BPM) sector.” According to their 2022 report entitled “The Philippine IT-BPM Industry Roadmap 2028 Executive Summary”, Filipino offshore professionals have expanded their skills beyond call centre work to include a broader range of expertise, from healthcare to digital marketing.

In response to the high demand for niche talent, particularly due to rapid IT innovations, the Department of Information and Communications Technology (DICT) released the Philippine Skills Framework (PSF). This landmark initiative offers free resources that government agencies, companies, and educational facilities can use to help Filipino workers adapt to international skill requirements and employment standards.

Finding common ground with remote staff is vital to outsourcing success. Despite cultural and time zone variances, mutual benefits can be gained from these differences to create a win-win situation for both the Australian business community and the Philippine offshore workforce.

Timewise, most of Australia is ahead of the Philippines. Filipino offshore workers can adjust their working hours earlier to coincide with Australian business hours. This actually works out for the best for several reasons:

Language barriers that can lead to miscommunication may be a concern in outsourcing. But with the Philippines, it’s not an issue. From primary to tertiary levels, English is the main language of instruction in Philippine schools. The country’s rank in the EF English Proficiency Index has remained consistently high at #2 in Asia and #20 worldwide as of 2023. This gives Filipino offshore staff a leading edge amongst other outsourcing destinations, making them the preferred choice for building remote teams. 

Filipinos are world-renowned for their hospitality and their inherent ability to adapt to any culture is another quality that makes them stand out from the rest. This fosters a seamless integration of the offshore team to the internal team for enhanced collaboration.

Teamwork comes naturally to them as well. “Bayanihan” – the Filipino cultural trait of coming together to help those in need – is reflected in their results-oriented work ethic. They are committed to accomplishing their assigned tasks, even going the extra mile by offering their assistance to achieve a common goal. 

Being resilient in the face of enormous challenges is another remarkable Filipino attribute that strengthens business continuity. Philippine offshore teams can be counted upon to stay the course and work their way to produce innovative solutions.

To recap, here are the top compelling advantages and benefits of employing Philippine offshore staff:

As these Australian companies can attest – along with many other businesses around the world – outsourcing to the Philippines delivers positive outcomes in terms of improved efficiencies and increased revenue. Working together with Twoconnect, a leading Australian-based outsourcing company for premium talent in the Philippines, has proven to be a game-changer in their growth journey with compelling results.