The Philippines is an increasingly popular destination for offshoring solutions and companies looking to outsource services. Its proximity to other major economic powers in the Asia-Pacific region, its affordable labor force, and its business-friendly government policies make it a top choice when considering where to locate an offshore operation.
In recent years, the Philippine economy has been growing rapidly, leading to an influx of foreign investment and the emergence of highly skilled workforces. The country is also one of the world’s leading destinations for offshoring operations and has continued to attract increased companies over the years. According to a report from the Philippine Economic Zone Authority (PEZA), there are currently more than 1,500 offshore companies in the Philippines, with major firms such as Hewlett Packard Enterprise, Teleperformance, Accenture, and IBM having established operations in the area.
Government authorities have also taken necessary steps towards improving the business environment for offshoring companies by providing incentives like tax holidays and duty exemptions. These measures are part of a more significant effort to promote foreign investments in the country that has already helped attract some of the world’s biggest outsourcing firms.
Even if the business landscape is changing worldwide, the Philippines remains consistent as a top offshoring provider for companies looking to outsource services and operations. With its favorable location in the Asia-Pacific region, diverse workforce, competitively priced labor costs, and attractive government policies, the Philippines is well-positioned to continue being an attractive option for companies interested in offshoring.
However, changes are inevitable, and these are among the factors that companies must consider when deciding where to locate an outsourcing operation.
Adaptation and Persistence of Remote Work
The Covid-19 pandemic has drastically changed how many industries operate, and offshore companies in the Philippines are no exception. For many years, offshoring has been a popular option for companies looking to reduce costs while maintaining access to skilled workers. The pandemic only brought offshoring on a better spotlight. However, the pandemic has caused a shift in the Philippine workforce’s preference for work arrangements.
Remote work and virtual meetings have become increasingly common due to travel restrictions and lockdowns imposed by governments worldwide. This has caused a significant shift in demand for Filipino workers who can provide services remotely instead of on-site. Remote work offers numerous benefits for employers and employees, such as greater flexibility in hours and location, and reduced overhead costs for companies. It also allows for more social distancing during these uncertain times.
The rise in remote work opportunities has rapidly changed the offshoring landscape in the Philippines. According to recent surveys by Jobstreet, over half of the Philippine workers now prefer working from home. Long-term remote arrangements have become increasingly popular among both employers and employees alike. In addition, many multinational companies that previously relied solely on offshore operations have begun shifting some of their teams or parts of their operations back home due to the pandemic’s effect on global mobility restrictions.
In response to these changes in demand, several initiatives have been implemented by private businesses and government organizations that aim to promote remote work as an attractive alternative or supplement to traditional offshore operations. For example, the Philippine Economic Zone Authority (PEZA) has launched a “Work from Home” transfer initiative, which offers incentives and subsidies to businesses implementing 100% work-from-home arrangements.
Remote work looks to become an increasingly popular choice for offshoring operations in the Philippines. Of course, many offshoring providers still offer hybrid or on-site packages. Companies must consider this when deciding how and where to allocate their resources best to remain competitive.
Unfazed in the Face of AI
The Philippines is home to highly skilled workers in many industries, particularly IT and customer service. However, artificial intelligence is proving to be a trend that threatens to
The Philippine workforce is among the top adopters of artificial intelligence (AI) and automation technologies. According to a report by the World Economic Forum, the country ranks fourth in terms of adoption of AI-related skillsets.
ChatGPT, a popular generative AI software, attracted one million users within its first five days. In comparison, IBM Watson, the world’s most famous AI platform, took three years to reach one million users. Asia is one of the most prominent markets for AI, with investors from China, Japan, and the United States providing funds to startups in the region.
The growth of AI-related technology in the Philippines has driven a need for knowledgeable workers that can operate and manage such systems. The country’s offshoring providers now offer highly skilled jobs related to AI and automation technologies, giving companies access to top talent at competitive prices. This is an attractive option for businesses looking to leverage these technologies while keeping costs low.
Philippine workers, especially those in the offshoring industry, can leverage AI and automation technologies to improve their services. This is essential for companies looking to outsource operations in the region. It provides access to highly skilled workers that can help them stay competitive in a rapidly changing business landscape.
Best in Time of Recession
The recession caused by the pandemic has wreaked havoc on the global economy, creating an uncertain and unpredictable business landscape. Offshore operations are being affected in many ways. Companies relying on offshoring providers in the Philippines have had to find ways to remain profitable while dealing with reduced demand and stricter regulations.
Regarding financial attractiveness, the Philippines has consistently been among the top countries for companies looking to outsource services. According to The Business Times, it ranks among the top five countries in terms of labor costs. This cost-efficiency has enabled companies to remain competitive during a recession and helps attract more investment from foreign businesses.
Partner with iSupport Worldwide for Your Offshoring Needs
The offshoring landscape is ever-changing, with business trends and innovative technologies driving the industry forward. Companies must stay on top of these changes and understand how they can leverage them to remain competitive. iSupport Worldwide has been in the offshoring business for over a decade, providing companies with access to highly skilled workers at competitive prices.
We have extensive experience working with businesses of all sizes and industries, helping them reduce costs and increase efficiency by leveraging our local talent pool in the Philippines. We also offer comprehensive recruitment solutions tailored to our client’s needs, from sourcing potential employees to training onboarded employees with the skills they need today. Our method works specifically for you. Get in touch and learn more about what we can do for your company’s offshore operations.