9 Benefits of Outsourcing MVP Project Development to the Philippines

December 31, 2021

benefits outsourcing philippines

To date, outsourcing has remained a widespread practice in developed countries. Everyone is searching for the most favorable market to an outsourced team abroad. The Philippines is a popular country in the developed world for businesses of all sizes seeking a competent, cost-effective, virtual team, in-house staff, and loyal freelancers for various software developments.

The Philippines will always be at the top of businesses’ minds regarding outsourcing destinations. Since 2010, it has been dubbed the “Call Center Capital of the World” and ranks 6th in the Tholons Services Globalization Index Top 50 Digital Nations. The Philippines’ biggest rivals are India, Central America, and Eastern European nations, but its strengths in certain areas give it an edge over the rest.

Many businesses in various countries require mobile apps and web services development for their business operations. But few of them understand business process outsourcing and have enough skilled personnel in this area, which is not surprising because implementing such a system would be expensive.

Many companies outsource to the Philippines to lower costs while maintaining high-quality work. That’s how it works: the project is handed over to a development team abroad. However, you have an idea for a new product or service, but you’re not sure if it’s the right time to invest in developing it.

What should you do? Learn about outsourcing MVP project development to the Philippines! Read on to find out how benefits outsourcing to the Philippines can save your business money and give you enough time to focus on other projects.

outsourcing destination

Why Outsource To The Philippines?

The Philippines has a medium cost of living and thus offers BPO services at reasonable prices. They also have a high degree of business flexibility, allowing large world-class companies to rely on their country as the primary outsourcing provider for software development services.

In addition, according to research, the Philippines was named one of Asia’s best locations for software outsourcing in 2017. Because their developers have shown themselves to be dependable partners in software development for Asian, European, and American customers, multinational corporations including IBM, Trip Advisor, Cisco, and other Fortune 500 list companies outsource their software development to the Philippines.

The Philippines was named one of Asia’s best locations for software outsourcing in 2017

6 Factors That Matter When Choosing The Right BPO Provider in The Philippines

Choosing an outsourcing partner for your company will significantly impact its reputation and success. It is one of those decisions that should not be made on the spur of the moment. Global companies of all sizes are discovering the value of outsourcing their most essential activities to the Philippines as the world continues to recover from the last economic recession.

It’s one thing to decide to outsource your company’s processes to a BPO provider; it’s another thing entirely actually to get on the outsourcing to abroad team. If you want your outsourcing efforts to be a success, you’ll need to partner with the right BPO company. The following are the six things to consider when choosing the appropriate BPO company for your needs.

1. The Company Background

It’s perplexing to entrust other people with such essential responsibilities on your behalf. As a result, you’ll need to do extensive research about the BPO company, its owner, and their background, history, track record, and management team in charge of your offshore team.

Make sure the outsourcing partner you’re thinking about working with has the skills to find competent and deserving professionals. Examine their credentials for evidence of expertise and success. If a company has a solid track record, you may assure a quick and error-free solution.

2. Core Competencies and Business Goals

Because each business is unique, it’s critical to outsource from a BPO industry that complements your company’s strengths, objectives, and corporate goals. This will ensure that your demands are fulfilled and keep you and your outsourcing partner on the same page throughout the development process.

This might be a genuinely beneficial bonus for your company since it will create a deeper relationship with your outsourcing partner. It can help you quickly tailor-fit solutions and services to your unique requirements while also offering the best assistance if you decide to expand.

3. Security and Risk Assessment and Management Capabilities

Always inquire about the security measures a firm uses and its risk management capabilities when looking for BPO companies.

  • Security safeguards your company, its procedures, and its assets from all types of intrusion, whether they are caused by malware assaults or deliberately aimed at your sensitive business information to take away your competitive advantage. Aside from network and data security measures, you need to learn about your outsourcing partner’s offices’ security methods to prevent social engineering.
  • A good BPO firm should have comprehensive risk-assessment procedures in place to identify any potential threats that might result in data loss and protect your business’ assets. This should be combined with thorough disaster preparedness procedures in the case of an emergency. However, to avoid non-core competencies and less management headaches, data protection solutions such as redundant storage and backup systems will need to be implemented.
offshore workforce

4. Certified Outsourcing Partner

Ensure that the company you choose for business outsourcing is licensed and registered. There are still unlisted companies operating illegally in a few uncommon situations in the outsourcing industry. They are not only breaking their government regulations, but they also demonstrate how irresponsible these firms are.

On the other side, certified outsourcing companies that pay their taxes and follow the regulations mandated by the Philippine government are classified as responsible. Thus, it would help to be extremely careful when outsourcing MVP project development to the Philippines.

5. Employee Retention

Most agents in an outsourcing company are only present for a short period. On the other hand, employee retention is considered by many to be one of the most crucial considerations when selecting an outsourcing provider.

To reward their workers for their hard work, many BPO companies offer jobs that have allowed several Filipino workers to support themselves and their families to increase their standard of living in society and generous incentive programs.

To help them relax, other outsourcing companies organize lunch outs, small group gatherings, and even team-building activities. It shows a lot about how they treat and manage their staff to retain them for a long time. Happy employees produce higher-quality work and a faster turnaround. Thus, choose an outsourcing company that values its employees.

6. Visit the Location/Office

When outsourcing a new business partner, do an ocular inspection on the site or office space before signing any documents. Before you sign a contract, you must visit the company location for yourself. Pay careful attention to the management team, the company environment, the devices in use, and the overall workplace design. Remember that a modest floor might be unassuming.

benefits of outsourcing

Benefits of Outsourcing Software Development to the Philippines

Because of the highly competent software developers’ availability and established ecosystem, the Philippines is quickly becoming a preferred choice for firms in various sectors that require software outsourcing, R&D, and other IT services. The following is a compilation of 9 reasons software development outsourcing to the Philippines would be the best option for your company.

1. Communication Skills

English happens to be the number one spoken language in the Philippines. Filipinos are fluent in English, so the language barrier will not be an issue. Compared to their Indian counterparts, Filipino workers can better communicate with offshore customer service teams from the West, making it easier for foreign customers to comprehend their local professionals.

To illustrate this, the 2017 A.T. Kearney Global Services Location Index found that Filipino BPO employees have neutral accents, making them more similar to American clients than before. According to the English Proficiency Index 2020, the Filipinos’ high English language proficiency might have contributed to this neutral voice. They are ranked 2 in Asia and 27 out of 100 nations in English language proficiency. As a result, companies choose the Philippines for outsourcing customer service and other non-voice activities.

local talent

Filipino BPO employees have neutral accents, making them more similar to American clients than before.

2. Labor Costs Are Cheaper

Compared to its South Asian counterparts, the Philippines is a low-cost country in wages. The cost of living in the Philippines is relatively low, which means you may be paying a fraction of what you would in Western nations.

Because of the reduced exchange rate, country-based business is affordable, with office space rentals, infrastructure, recruitment, taxes, health insurance, legal costs, and other costs involved in running a business.

As a result, your company’s profitability improves since you may allocate funds to enhance customer service and improve your employees’ expertise.

in house politics

3. Government Support

The Philippine government is aware of the role of BPOs in the economy, and it has offered its full backing for the development of the BPO sector. Foreign firms may profit from outsourcing to the Philippines in many ways, one of which can benefit from favorable tax laws.

The government passed Republic Act No. 7916, also known as The Special Economic Zone Act, to entice more foreign businesses to outsource to the Philippines.

The Special Economic Zone Act, enacted in July 2014, provides tax exemptions and incentives to foreign investors, builders, and operators of ready-to-occupy environmentally sustainable, secure, and competitively priced special economic zones such as BPO and KPO companies.

The following are some of the advantages: income tax holidays, corporate tax exemption, tax and duty-free importation of raw materials, capital equipment, machinery, and spare parts, reduced healthcare costs and providing health insurance, sick leave reporting, and other tax incentives.

work life balance

4. Highly-Skilled Workforce

Foreign businesses are concerned that outsourcing in the Philippines may result in low-quality work due to low salaries, but this isn’t the case with Filipinos. The Philippines has the edge over India, Vietnam, and Sri Lanka because Filipinos are recognized for providing high-quality work. Aside from that, Filipinos have a literacy rate of 97.95 percent, which is the highest among all Southeast Asian countries.

Every year, graduates from prestigious institutions begin working life, and most of them are qualified to perform a wide range of jobs. There are also specialized training programs designed to teach employees of the BPO industry-specific talents.

philippine population

5. Cultural Compatibility

The Philippines’ history as a Spanish and American colony has left its culture and traditions very similar to Western countries for nearly 400 years. Filipinos have always had to deal with the Western culture; their openness to other cultures has greatly influenced and helped them accept different ways of life and societies, giving them an edge.

Aside from that, Filipinos are naturally friendly, energetic, good-hearted, sympathetic, and diligent, which are essential qualities for customer-centric positions. The Philippines has a long history of business process outsourcing (BPO), and the country’s people have been trained to succeed in such an atmosphere.

The BPO sector is already a large one that provides significant revenue to competing countries and their economy. The Philippines is one of these countries. The Philippine economy, previously known as “the sick man of Asia and now the new Tiger economy of Asia,” has significantly expanded since its peak in outsourcing in 2015. Up until now, many foreign companies and business owners have been enticed to outsource in the country.

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6. Ready Infrastructure

The Philippines is a business-friendly country where high-rise buildings, rooms, and seat rentals are readily accessible in and around the metropolis for startup companies. Outside Metro Manila, the real estate industry also assists the BPO sector.

In 2018, five other Philippine cities were added to the Tholons Top 100 Super Cities list, including Cebu, Davao, Sta. Rosa, Bacolod, and Iloilo. Today, BPO centers may be established in any city across the Philippines.

Aside from that, to assist the country’s working sector, the government improved its transportation network. Trains, jeepneys, buses, and taxis ply various routes to business districts like Manila, Makati, Ortigas, Bonifacio Global City, and Eastwood to transport BPO employees to their workplaces.

legal liabilities

7. Data Privacy and Security Regulations

Data security is the most significant roadblock preventing companies from outsourcing to the Philippines. The government has implemented a series of data privacy laws to address the problem. In 2012, Congress passed the Data Privacy Act of 2012, also known as Republic Act 10173. It is the first comprehensive data privacy legislation in the Philippines.

The country’s data policy significantly boosted when it was put on par with international standards by adopting the International Standardization Organization’s (ISO) ISO/IEC 10173. Individuals or companies may be fined up to €87,100 and face imprisonment of up to seven years under the Data Privacy Act of 2012.

pop culture

8. Admirable Work Ethic and Better Work-life Balance

Another significant benefit Filipino BPO employees have over the competition is their work ethics. They are not easily disturbed since the Filipinos are known for their patience and composure under pressure.

They have a great deal of self-respect for individuals, which shows when they deal with clients. Compared to their foreign counterparts, Filipinos have a greater sense of responsibility and ownership for their profession.

Filipinos are known for adapting to new circumstances, which is a requirement in most BPOs. They can keep to tight deadlines and collaborate with others. Also, being kind, understanding, and sympathetic gives them an advantage over their competitors.

There’s never enough time in a day. People are putting in longer hours at their jobs. Working with a team in the Philippines can help you enhance your work-life balance by allowing you to offload time-consuming, monotonous, and often dull tasks to them.

They are not easily disturbed since the Filipinos are known for their patience and composure under pressure.

marketplace equipped

9. Latest Technology

BPO firms in the Philippines have utilized cutting-edge technology like IP telephony and social media channels to build innovative contact centers, thanks to partnerships with global enterprises such as Microsoft.

The Philippines is now one of the few countries that provide omnichannel customer service through email, real-time chat, social media, and video chat, thanks to the government and foreign investments.

In the Philippines, technology has advanced rapidly in recent years. Telecommunications, Internet service providers, health care, airline, and other sectors have been stepping up to acquire cutting-edge technologies in data security, internet connectivity, IT infrastructure, and more.

ready and willing workforce

Choose Philippines as your Next Outsourcing MVP Project Development Today

The Philippines has developed into one of the most popular outsourcing destinations in recent years owing to a combination of numerous appealing elements that are ideal for businesses all across the world. MVP project development outsourcing to the Philippines has high performance, quality results, and financial benefits, making it an excellent option for businesses in any sector.

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Final Thoughts

The Philippine BPO industry will continue to grow. Despite some problems, the industry has never stopped growing, such as the COVID-19 pandemic. The Philippines’ attractiveness as an outsourcing destination is demonstrated by its contribution to the economy, the jobs it creates, and its increasing revenue.

developed countries

About the author: Joe Silk -

Joseph is a freelance writer who focuses on sharing our Startup Oasis team's abundant knowledge with the rest of the world. Our team has no secret for anything to do with Startups, SaaS software firms, technology, Web and mobile apps, IoT, UI/UX Design. View on Linkedin