Lower Costs of Outsourcing to Highly-Skilled Staff in the Philippines

Lower Costs of Outsourcing to Highly-Skilled Staff in the Philippines

Approximately 3 million new graduates of the Philippines' world-class higher education system enter the job market each year.

In addition, Manila boasts a robust professional certification and continuing education system, providing developers and other skilled workers with additional qualifications such as Microsoft and Cisco certifications, as well as sales and customer service training. It is possible to find staff with virtually any specialization in the Philippines.

Not only that, many of the world's leading high-tech companies such as IBM, Dell, Samsung, and Texas Instruments have made large investments in their operations in the Philippines, so many job candidates have extensive experience at multinational corporations producing work to the highest international standards.

Until the emergence of the BPO industry in the Philippines, the local economy could not support the millions of skilled and highly talented local workers who enter the workforce each year, forcing the new workers to join millions of other Filipinos currently working abroad in menial jobs that make no use of their skills and keep them far away from family and friends. The result is a pent-up demand for skilled positions that creates a positive environment for BPO's looking to hire skilled workers. This is in stark contrast with other offshoring centers such as India where finding and keeping employees is a serious challenge.

Next and obviously, the engine that propels the outsourcing industry in any developing country is its lower cost of doing business. The Philippines excels in this area, especially with regard to labor costs. The minimum daily wage in the Philippines is approximately $8 per day and the starting salary for college graduates from good schools begins at around $300 per month.

Salaries in the southern part of the country tend to be slightly lower than in Manila but Manila offers the largest pool of skilled workers, as well as the best English speakers.

Other products and services that benefit from low labor costs, such as office rental, professional services, office supplies, food and lodging are also extremely reasonable in the Philippines. Taxes and health care costs are also much cheaper than in developed countries. Cost savings are not as great for products that must be sourced from abroad, such as computers; and for telecommunication services such as internet access.

Overall, however, a company can expect to save over 50% on staffing costs by outsourcing in the Philippines.

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