The IT outsourcing industry in the Philippines has been blooming. Outsourcing in the Philippines currently employs more than 2 million people and account for one of the biggest contributors to the growing Philippine economy. In fact, the past decade shows that outsourcing to the Philippines has seen a 30 percent growth. So what exactly makes the Philippines a great outsource destination especially when it comes to information technology? Keep reading to find out.

What is IT outsourcing?

Before we get into the reasons on why we should outsource IT to the Philippines, we must first understand what IT outsourcing is. IT outsourcing is the process of subcontracting or using a third party such as another company or an external IT outsourcing organization to effectively deliver information technology-enabled services such as IT or HR solutions, management systems, and headhunting services. For example, if your company doesn’t have the resources to create a HR management system or maybe you don’t have the staff to be able to headhunt through IT, what you can do is make a third party that actually specializes in that field to do it for you for a cost.

There are a variety of reasons why various companies, organizations, and businesses use IT outsourcing, specifically outsourcing them to Philippine outsourcing agencies.

Why should you outsource IT to the Philippines?

One of the hottest destinations for outsourcing IT solutions and IT services is the Philippines. Listed below are the reasons why outsourcing to the Philippines in general is incredibly business friendly and viable.

  1. Cost

One of if not the biggest reasons for outsourcing IT to the Philippines is the immense cost-savings businesses can savor. Aside from the cost of labor usually being half of what it is in other countries and states, you don’t have to pay for the office rent, powerful computers, human resources, legal costs, and much more. It is only natural that capital moves to countries with cheaper tax rates, lower rent costs, flexible trade regulations and affordable labor. A lot of CEOs and business owners can dramatically enhance their bottom line by outsourcing IT to the Philippines as saving money is pretty much the biggest reason organizations have been outsourcing to the Philippines.

  1. More Access to Skills and Talent

Your business or organization’s human resources won’t always have the skills especially when it comes to information technology. In addition to that, headhunting and recruitment for these necessary skills will definitely be a hassle. This makes outsourcing IT to certified IT service companies who actually specialize in information technology more viable. In comparison to other countries, Philippine companies can hire a lot of skilled and willing talent much quicker, which has a lot to do with the country’s educational system and the abundance of BPO related courses in various universities.

  1. Language

Compared to other countries, the Philippines has a substantial advantage when it comes to language. This is because English is an official language in the Philippines as it is used on a daily basis. In addition to that, a lot of people in the Philippines know how to speak Chinese, the most spoken language in the world. Having two of the top 3 most spoken languages worldwide on their belt makes it a lot of sense to consider Philippine companies as outsourcing candidates. This makes these BPOs easier to work with as language never becomes a hindrance.

  1. Data Privacy and Security

The Philippine government is very particular in ensuring that the business process outsourcing (BPO) industry in the Philippines is able to thrive and demonstrate growth. To ensure this the government has set up deliberate laws and legislations to facilitate the sharing of confidential data, an inevitability when it comes to outsourcing, especially in information technology. Since the nature of outsourcing requires sharing some confidential data, the Philippine government set the data privacy act in 2012 to establish strict regulations to protect valuable data from the client. With this, you can be sure that your data is kept private and confidential when you invest in Philippine outsourcing companies especially in the case of information technology.

The BPO industry is a powerful economic structure in the Philippines as mentioned above. The government recognizes this and therefore has done an excellent job in facilitating BPO growth through policy development. This makes them incredibly concerned with data privacy and security, setting up strict regulations regarding the subject.

  1. Reduced Legal Liabilities

Among the many concerns of running an organization or a business is leaving your processes open to legal liabilities such as lawsuits. Although, if you outsource to the Philippines you vindicate yourself from the hassle as Philippine outsourcing companies are legally strong to maintain customer and client relations. You essentially don’t have to hire more employees, or deal with lawsuits and internal politics as all of these will be taken care of by the outsourcing agency. This gives you more time and resources to focus on other business processes in your organization that may involve your core competencies.

  1. Shared and Reduced Risk

All business investments carries some sort of risk in some shape or form. Whether it is the constantly changing dynamics of the market, unpredictable financial conditions, or the evolving technology there is always something that cannot be predicted. Outsourcing companies manage a lot of the risk for you. With more industry knowledge, outsourcing agencies generally do better risk decision-making in their areas of expertise, which in this case is information technology.

  1. Flexibility and More Focus

Through outsourcing, you can construct a team that specializes in different parts of information technology resulting in a more diversified collective skill set that spans over a range of tasks. In addition to that, language barriers won’t be much of a problem when outsourcing to the Philippines as stated in reason number 3. Outsourcing your non-core competencies such as information technology specialization will not only allow you to be more efficient but will also allow you to focus on other business processes such as developing and growing your business as well as center on other aspects that your in-house resources actually specialize in. After all, not all organizations and businesses have the internal resources to specialize in niche skills like information technology.

  1. Efficient Implementation of New Technology

A good outsourced IT service agency in the Philippines will have the resources to start projects immediately. If you were to handle the same project internally may take months to recruit and train competent staff while outsourcing IT to the Philippines will bring instant years of experience and will save you a ton of time and resources on your hands.

The global economy is inevitably headed towards globalization and organizations are under pressure to gain some sort of competitive advantage whether it’s cutting costs, being more efficient, or providing a better customer experience. As a business, how would you do so with limited resources?

Springboard is a BPO company stationed in the Philippines that not only provides excellent IT services and solutions, but also offers headhunting recruitment services, HR services, executive search, HR consultancy and lots more. If you own a business or are a leader and major decision-maker in an organization or company, consider checking out Springboard if you’re interested in offshoring information technology or outsourcing services to the Philippines in general.

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