Outsourcing to the Philippines: 10 Common Myths Debunked

Outsourcing has gained popularity as a cost- and efficiency-saving strategy for businesses as the world becomes increasingly interconnected. The Philippines is one nation that has emerged as a top outsourcing destination. Yet there are lots of misconceptions surrounding outsourcing to the Philippines. In this post, we’ll debunk some common misconceptions and highlight why outsourcing to the Philippines is an excellent option for your business.

Outsourcing to the Philippines has various advantages, including cost savings, access to a highly skilled labor, strategic position, timezone advantage, high-quality service, strong government support, and a culture of hospitality. The nation boasts a sizable, well-educated, and hardworking English-speaking workforce. Furthermore, Philippine outsourcing firms comply with international quality standards and certifications, providing high-quality services. 

In our previous article: Outsourcing to the Philippines: Is It Right for Your Business?, we provided a more in-depth overview on the benefits, commonly available services, and best practices when outsourcing to the Philippines.

Common Myths

MythAnswerDescription
1Philippines has poor internet connectivityFalseThe Philippines has made significant investments in its telecommunications network, making it one of Southeast Asia’s most outstanding countries for internet connectivity.
2Philippines is not a safe country to outsource toFalseThe Philippines is typically a safe country with a low crime rate/
3Philippines has a high turnover ratePartially TrueTurnover rates in the outsourcing industry are generally higher than average, but this can be managed by working with a reputable outsourcing partner.
4Philippines only offers call center servicesFalseWhile call center services are popular, the Philippines also offers a wide range of outsourcing services
5Philippines is not cost-effectiveFalseThe cost of living is lower in the Philippines, making labor costs lower too.
6Outsourcing to the Philippines is a cultural challengeFalseThe Philippines has a strong cultural connection to the West, and many Filipinos are fluent in English and familiar with Western culture.
7Communication with the Philippines is difficultFalseThe Philippines has a high level of English proficiency, and outsourcing companies frequently provide communication training to their employees.
8Time zone differences make outsourcing to the Philippines difficultFalseMany outsourcing companies offer 24/7 services, allowing for communication at any time.
9Philippines does not have a skilled workforceFalseThe Philippines has a highly skilled workforce in fields such as engineering, information technology, and business administration.
10Outsourcing to the Philippines means losing controlFalseWorking with an outsourcing partner in the Philippines can actually help businesses maintain control over their operations, as outsourcing companies provide regular reports to clients.

MYTH 1: The Philippines has Poor Internet Connectivity

One of the most common myths about outsourcing to the Philippines is that the country has poor internet connectivity. Contrary to popular belief, this is not the case. Due to significant recent investments in its telecommunications infrastructure, the Philippines now enjoys some of Southeast Asia's greatest internet connectivity.

MYTH 2: The Philippines is not a Safe Country to Outsource to

Another widespread misconception regarding outsourcing to the Philippines is that it is a dangerous place. While it's true that there are certain unsafe locations in the Philippines, this is true of any nation. The Philippines is generally a safe place to conduct business. The nation has a low crime rate and the government has taken action to safeguard the security of its residents and visitors.

MYTH 3: The Philippines has a High Turnover Rate

Some businesses are hesitant to outsource to the Philippines because the BPO sector of the country has a high turnover rate. While it is true that the outsourcing sector has higher turnover rates than other sectors, this is mostly due to the nature of the industry. Outsourcing companies frequently provide short-term contracts which contributes to the turn over rate.You can anticipate a lower turnover rate by collaborating with a reliable outsourcing partner.

MYTH 4: The Philippines only offers Call Center Services

There is a common misconception that the Philippines only provides outsourced call center services. This is false. While call center services are popular in the country, there are many other services readily available such as data entry, graphic design, software development, and more. The Philippines has a highly skilled workforce that can handle a wide range of outsourcing services.

MYTH 5: Outsourcing to the Philippines is not Cost-Effective

Some companies believe that outsourcing to the Philippines is expensive, however this is not the case. Since the Philippines has a lower cost of living than most Western nations, labor costs are also lower. This means that firms can save money by outsourcing to the Philippines while still receiving high-quality services from its highly skilled workforce. Outsourcing can also allow companies to save money on overhead expenses like office space and equipment.

MYTH 6: Outsourcing to the Philippines is a Cultural Challenge

Some businesses believe that outsourcing to the Philippines can lead to cultural challenges. But this is not always the case. The Philippines has strong cultural ties with the West, especially with the United States. Most Filipinos are also fluent in English and familiar with Western culture.

MYTH 7: Communication with the Philippines is difficult

Similar to the myth on Cultural Challenges another common myth is that communication with an outsourced team in the Philippines can be difficult. Although it can vary on a case-to-case basis. The country has a high level of English proficiency and is culturally compatible with most western nations. Additionally, outsourcing firms often provide cultural and communication training to their employees to ensure that they can communicate effectively with their clients.

MYTH 8: Time Zone differences make Outsourcing Difficult

Time zone differences can be a concern for businesses considering outsourcing to the Philippines. Fortunately, outsourcing partners that offer round-the-clock services are readily available in the Philippines, allowing outsourcing firms to adjust their services to the time zones of their clients.

MYTH 9: The Philippines does not have a Skilled Workforce

Simply said, this is untrue. Filipino workers are extremely skilled, especially in the outsourcing sector. Many Filipinos hold degrees in business administration, information technology, and engineering. Additionally, a lot of outsourcing businesses in the Philippines train their staff members to make sure they have the abilities needed to offer their clients high-quality services.

MYTH 10: Outsourcing to the Philippines means Losing Control

Some businesses are hesitant to outsource to the Philippines because they fear losing control over their operations. However, this is not always the case. Working with an outsourcing partner in the Philippines may actually assist businesses keep control of their business operations. Outsourcing companies provide clients with frequent reports, allowing business to stay on top of their outsourced activities and ensure that they are reaching their objectives.

Why the Philippines is an Ideal Outsourcing Destination

Many businesses opt for outsourcing to cut down costs and gain access to skilled labor, but it’s crucial to consider cultural compatibility to ensure success. The Philippines is an excellent destination for outsourcing, particularly for Western companies, due to its similar cultural and historical background, high proficiency in English, and a constantly increasing number of talented professionals. 

If you’re interested in learning more about why the Philippines is a suitable outsourcing destination, specifically for Australian businesses, check out our previous article: Cultural Compatibility in Outsourcing: Why the Philippines is Ideal for Australian Businesses.

Conclusion

Outsourcing to the Philippines is a great option for businesses looking to save money and increase efficiency. The Philippines has a highly skilled workforce, excellent telecommunications infrastructure, and a strong cultural connection to the West. By debunking some of the common myths surrounding outsourcing to the Philippines, we hope that businesses will be more confident in their decision to outsource to this great country.

Frequently Asked Questions (FAQs)

Q: Is outsourcing to the Philippines legal?

A: Yes, outsourcing to the Philippines is legal. The Philippine government actively promotes outsourcing as a way to boost the country's economy.

Q: What types of outsourcing services are available in the Philippines?
A: The Philippines offers a wide range of outsourcing services, including call center services, data entry, graphic design, software development, and more.

In our previous article: Outsourcing to the Philippines: Is It Right for Your Business?, we provided a more in-depth overview on the benefits, commonly available services, and best practices when outsourcing to the Philippines.
Q: How do I find the right outsourcing partner in the Philippines?

A: There are many outsourcing companies in the Philippines, so it's important to do your research and find a partner that meets your needs. Look for a partner with a strong track record, excellent communication skills, and a highly skilled workforce.

Q: How much can I save by outsourcing to the Philippines?

A: The amount you can save by outsourcing to the Philippines will depend on a variety of factors, including the type of services you need, the size of your operation, and the outsourcing partner you choose. However, in general, outsourcing to the Philippines can help businesses save on labor costs, overhead expenses, and other costs associated with operating a business in a developed country.

Q: How can I ensure that my outsourcing partner in the Philippines provides high-quality services?

A: To ensure that your outsourcing partner in the Philippines provides high-quality services, you should look for a partner that has a strong track record of delivering quality services to its clients. You should also establish clear communication channels with your outsourcing partner and provide them with clear instructions and expectations. Finally, you should monitor your outsourcing activities closely to ensure that your partner is meeting your goals and objectives.

Outsourcing to the Philippines has huge potential to unlock your business success, and it’s a great way to free up resources that can be put towards your core business. Not only will you get access to talented professionals with highly sought-after skill sets, but also lower costs due to favorable exchange rates and labor regulations.

With an experienced partner like Taskforce Outsourcing by your side, you can tap into Filipino talent without having to worry about any of the complexities associated with managing offshore teams. Let us help you bring your business dreams one step closer!

We are committed to quality services at an affordable price, and to helping small businesses grow and succeed through outsourcing. Contact us today to learn how we can be your outsourcing partner and support your business success.