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Outsourcing is on the rise, and it’s changing the way businesses operate! Imagine a world where 37% of organizations have embraced outsourcing. This is a whopping 270% jump in just four years!
Why this surge, you ask?
Well, it’s all about the triple threat: saving costs (46%), getting specialized skills (40%), and the magic word, scalability (37%).
Where do said businesses outsource? Read on to explore the top outsourcing destinations in the world this 2023!
1. Philippines
In English Proficiency, the country is among the Top 20 in global rankings and Top 2 in Asia. This country’s high literacy rate makes it one of the most-sought out BPO providers in the world.
Another of the greatest assets of Filipinos is their neutral accents. It allows them to adapt to different accents. This means that Filipino call center agents can replicate the natural accent of their assigned region or country.
Filipinos are also known for their customer-centric approach. They naturally five off a compassionate vibe and are very patient. This allows them to deal with their clients amicably.
Furthermore, the workforce comprises of well-educated individuals. This provides a stable hiring pool of talents that BPO companies can use to deliver results to the clients.
It’s no wonder the Philippines is the World’s BPO Capital as the country. It accounted for the $26 Billion contribution in the country’s GDP in 2019 alone. Some of the top countries that outsource to the Philippines include the U.S.A, Australia, and the UK.
Competitiveness Level: During the COVID-19 Pandemic, the national government implemented local lockdown. This has affected most of the BPO companies located in Metro Manila.
However, the sector still thrives despite the challenges brought by the lockdown. In fact, most outsourcing companies found new opportunities to provide customer satisfaction. This is true even in the work-from-home setup.
2. India
The country’s top selling point is its talent pool. They specialize in IT and software development. India ranked 1st in the Top 50 Digital Nations. Known companies such as Microsoft outsource some of their services in this country.
Competitiveness Level. The BPO sector in India faced severe challenges due to the pandemic. A major hindrance is the need for more bandwidth connectivity. This is highly needed to support the work-from-home setup of employees, especially in rural areas.
Although this may be true, experts claim that India still enjoys the trust of big businesses for its outsourcing needs and is expected to recover. In English Proficiency, India was 35th out of the Top 100 in world rankings and 5th out of 25 countries in Asia.
3. United States
This country usually outsources and not the other way around. However, the US is now an emerging key player in providing outsourcing services.
In fact, they are popular on tech support and IT-related services. The US landed on the top 2 in the Top 50 Digital Nations for 2020 of Tholons Report.
Competitiveness Level: US provides top-of-the-line technologies and customer support. Plus its proximity to businesses that avails outsourcing services makes it a top choice.
However, they have the highest corporate income tax compared to other countries that offer quality outsourcing solutions. This become a huge hindrance for most businesses.
4. Brazil
The signing of the Outsourcing Law in 2017 made the country fully utilize the beauty of outsourcing. As a result of this law, it has made outsourcing more accessible. In effect, Brazil proved its competency in IT-support. India was even dubbed as an alternative to India.
Competitiveness Level: The BPO services of the country earned a total revenue of $4.9 Billion in 2018. They’re even considered as a rising economic power in Central America. All thanks to their growing market share.
Economic reforms and better policies are being implemented in the hopes of maximizing outsourcing opportunities. Tons are opening to improve the service and labor force in the country. Finally, Brazil ranked 59th in world rankings and 12th in Latin America in terms of literacy.
Weighting Your Options: Why Philippines is a Top-Notch Outsourcing Service Provider
The Philippines is enjoying its huge chunk of shares in the global outsourcing industry. This ensures its top place in the yearly world rankings of the go-to country to outsource.
Outsourcing in the Philippines is known for its excellent services in customer support, technical assistance, and BPO services. Global business leaders such as Google, Amazon, Canva, Citi, Wyndham Destinations, AT&T, and many more outsource their business processes to the Philippines.
For what reasons, you ask? Let’s talk about that on the sections below!
Cost-Effective Labor Force
Full tech-support, 24/7 customer service, or IT-related troubleshooting? Outsourcing companies in the Philippines can deliver without a hassle.
The best part? It’s at a low cost.
With the country’s affordable labor force compared to other countries, its workforce is filled with highly skilled individuals who can compete in the global arena in the outsourcing industry.
Technical Infrastructure
The Philippines is not last in the race in technological advancement. Outsourcing companies are all ready to roll-out the latest technologies to help businesses grow.
Cultural Compatibility
Once a colonized country, the Philippines is a healthy mix of the South Eastern and Western cultures. This means they can relate to these cultures more seamlessly than other outsourcing countries. This enables Filipinos to reach their full potential to deliver the expected results set by the clients.
Progressive And Solid Government Support
The Philippines proved itself as one of the game changer in the outsourcing industry. The government acknowledges this and is hence, making way to maximize the country’s full potential.
An evidence of this is the government’s provision of laddered education related to ICT. Moreover, the Philippine Economic Zone Authority (PEZA) incentivizes BPO companies.
BPOs can now leverage fiscal incentives such as VAT zero-rating of local purchases of goods and services. Income Tax Holiday (ITH) for up to six years is also among the many benefits outsourcers can enjoy. Meanwhile, non-fiscal incentives include perks extended to foreign investors and their families.
Outsourcing To One Of The Top Call Center in the Philippines
The COVID-19 pandemic posed new challenges in the outsourcing industry of the Philippines. However, it also opened new opportunities. Notably, it even highlighted the Filipino resiliency and efficiency. To this day, Filipinos continue to deliver results to growth-hunger businesses.
Magellan Solutions is a perfect demonstration of such top-tier outsourcing services. With 14 years of industry expertise, we’ve assisted businesses from SMEs to global leaders across the US, Europe, Australia, and New Zealand. Don’t miss out on this opportunity to enhance your operations and grow your business.
Contact Magellan Solutions today and receive a complimentary 60-minute phone consultation with one of our dedicated business development officers. Act now, and let us help you reach new heights of success!
