Going offshore and outsourcing has become less a strategic advantage and more a competitive necessity. It gives you competitive advantage and significantly reduces cost without sacrificing quality and lets you focus on your core business.

As management guru Tom Peters said, "Do what you do best and outsource the rest."

• Reasons for Outsourcing
• Improve Company Focus
• Devote Funds to Core Competency
• Make Capital Funds available
• Cash Infusion
• Reduce and control Operating Costs
• Free-up internal resources for other purposes
• Resources are not available internally
• Certain tasks are difficult to manage / out of control
• Increase sales and volume at a fraction of the cost
• Gain access to world-class capabilities

The Philippine Advantage

The Philippines has much to offer foreign IT-service enterprises looking to expand or outsource their activities: it includes a fast-growing telecommunication and IT-enabled infrastructure; it is also ideally located, resulting in good relations with foreign partners.

The private sector enjoys the support of the Philippine government, which has embraced the ICT Industry as a major economic driver. Both sectors work together actively and synergistically to further develop the ICT-enabled service industry. The private sector is supported by the Philippine government in coordinating programs to encourage the growth of the ICT industry in the form of special ICT industry plans and incentives. These programs have resulted in a number of focused training options that have bolstered the workforce with valuable skilled labor.

In terms of cost optimization and the ability to provide value-added services the Philippines ranks among the top destinations of the globe. Studies have shown that the Profit After Tax margin for a contact center located in the United States or in Europe is typically of the order of 5% to 10% whereas in the Philippines the equivalent margin is between 20% - 25%.

The English Language Advantage

Filipinos speak neutral English as a second language, brought about by the cultural affinity with the United States. English is the medium of instruction in schools and is spoken by 72% of the population. The Philippines is considered the third largest English-speaking nation in the world. It is said that Filipino English is more likely to be understood by American, British, and Australian English native speakers.

“Local verbal skills (in the Philippines) are superior to that of India, Ireland or other offshore locations.” - Gartner Inc. Report

The country has an IT-enabled infrastructure, supported by a solid system of power and telecommunication infrastructure. There is redundant international connectivity, which includes fiber optic cables and satellite communication. Special economic zones, or IT parks and buildings, have ample and up-to-date telecommunications capabilities:

(1) an abundant supply of available telephone lines, ISDN, and fiber optic technologies, and (2) a clean, uninterruptible power supply and computer security, and building monitoring and maintenance systems. Nine IT Parks/Buildings with sizes ranging from 11 to 25 hectares have already been put up in various specific business districts around the country.

Reasons for Philippine Outsourcing

• Labor cost in the Philippines is a fraction of US labor
• Available Labor Force of 29 million
• 350,000 college graduates per year
• Literacy rate of 94%
• Third largest English speaking nation
• Call center positions are highly desirable and respected professions
• Low Attrition Rate
• Long history of relations with the United States
• Strong, stable Democratic Government