Why More Australian Companies Are Choosing To Outsource To The Philippines
In the last 10 years there has been significant growth in the outsourcing industry, with majority of the growth being particularly focused in Asia, with countries such as India and the Philippines fiercely fighting it out for the top spot.
Although India for many years has been the leader in outsourcing, it is now starting to see some serious competition from the Philippines. Over the years, there has been a steady increase in Western countries choosing the Philippines as their outsourcing destination of choice.
This particularly rings true with Australian companies, with an increasing number of Australian businesses and startups looking to outsource to the Philippines. This is due to more and more Australian businesses and entrepreneurs realising how Filipinos can greatly influence the success of a business through outsourcing.
In addition, Australia’s proximity to Southeast Asia provides a strategic advantage to both employers and remote staff to work together, these advantage and others are further discussed below.
Low Cost Of Labour
It’s no secret that the labour costs in Asia are significantly lower than compared to developed Western countries. This is clearly seen by comparing the average starting wage of an outsourcing employee in Manila, which is around AUD$600 per month, depending on the workers skills and experience.
On the other hand, the minimum wage, which was set as at 30 May 2019, in Australia is $19.49 an hour. So, if you do the math, you can see how much Australian businesses can save by outsourcing to companies in the Philippines, easily reducing labour costs by more than 70%.
Higher Literacy Rates
A survey conducted by the Philippines Statistics Authority, indicated that the Philippines had approximately 95.6% literacy rate, which ranks significantly higher than its Asian counterparts, in particular India, which according to an article published in The Times of India, was 74.4%.
It is a well know fact in the outsourcing industry that ease of communication in outsourcing is crucial for business success.
Similar Time Zones
Filipinos are always drawn to applying to Australian companies due to the similar time zones. This is because it allows them to work during the day, as opposed to the graveyard shift, and also allows them to beat the traffic, as the eastern states of Australia are usually 2-3 hours ahead of the Philippines, depending on the time of the year, meaning employees can start at 6am or 7am in the morning, instead of 9am, when the rest of the Philippines workforce start, beating the morning traffic and leave at 2pm or 3pm, instead of the usual 5pm, when the rest of the Philippines workforce ends, ensuring an easy ride home.
This in turn fosters a happier work environment as it allows employees to spend more time with their family and friends, as they don't need to sleep during the day or get stuck in traffic for hours on end, resulting in happier and healthier employees.
Hospitality And Similar Culture
Filipinos are well-known for their hospitality. They are always open to welcoming people, from anywhere in the world, with open arms . The warm and friendly nature of Filipinos makes it easy for them to get along with and work with all different types of nationalities.
In addition, Filipinos have excellent English language communication skills, and a strong embrace of the Western culture. All this brought together is what has made the Philippines an excellent place for many foreign companies to establish their own startups and businesses.
Strong Support From The Government
Many Filipinos are employed in the outsourcing industry, and as a result the government has rolled out free training programmes for many of its citizens and financial initiatives such as reduced taxes for foreign companies, in order to entice more foreign companies to invest in the country.
The government has also made significant strides in improving its infrastructure, with many sky scrappers and tall buildings lining the sky of the countries central business district, Makati, where Integrated Globaltech's office is located.
So if your interested to know more about outsourcing to the Philippines, feel free to click here to contact us.