CAD Outsourcing 3D-KAD

Why You Should Start your Offshore Office in the Philippines

    The word ‘outsourcing’ has developed a negative stigma. When people hear the word “outsourcing” they think low-income, uneducated, poor english-speaking employees. The Philippines has slowly but surely been disintegrating this negative stigma behind outsourcing abroad. With its highly educated, westernized culture, cost-competitive workforce, and strong government support, outsourcing to the Philippines has become an incredibly positive opportunity for many industries, including Cadsourcing, and thus is one of the most attractive locations for outsourcing.   In 2015, the outsourcing industry in the Philippines employed over 1 million Filipinos. The World Bank projections estimate that by 2020, the outsourcing industry within the Philippines may generate up to $55 billion — or roughly 11 percent of the country’s GDP. Recently, the president of the Business Processing Association of the Philippines (BPAP) commented: “Outsourcing business services to the Philippines helps make American companies more competitive and profitable. Profitable company hire more workers, both here and in the United States.”

    The BPAP acts as an advocacy group for the Philippines’s outsourcing and offshoring sector and seeks to promote competitive advantages and growth potential in existing and new areas of outsourcing. The BPAP is seeking to improve the outsourcing industry within the Philippines; however, it is already a strong market for many reasons including:

    Highly Educated Society:

    Basic education is made available to virtually the entire population within the Philippines. With an extremely high literacy rate — close to 94% — the Philippines is not far behind that of the United States, the United Kingdom, and Canada. In addition, the Philippines educational system has been significantly influenced by its American occupation making English the primary language of instruction. Because of the deep-rooted American influence, the public education system is specifically patterned after the United States school system. In terms of higher education, the Philippines has very reputable universities that are internationally recognized. Together, the public and private Filipino University system produces approximately to 400,000 highly qualified graduates a year.

    Strong English Speaking Country:

    As was mentioned above, the Philippines was occupied by the United States in the late 1800’s and early 1900’s, which explains why the education system has a westernized model. In addition, English is the primary language for educational institutions as well as the primary language used in the workplace. This has resulted in a world-class English proficiency for Filipinos. Filipinos have a strong affinity to western culture. In fact, the Philippines is the third largest English speaking country in the world. In addition, Filipinos’ slightly American English accent is easily understood unlike the English found from outsourcing to India or other countries.

    Under-Employed Qualified Workforce

    Historically, the Philippines has had a hard time providing jobs to the entire workforce each year. The Philippines is a very young nation with a growing population of 104 million people. The average age of its citizens is only 22. Each year, approximately 380,000 to 450,000 college graduates enter the labor force; however, the Philippine’s economy has not been able to support the high number of skilled workers. The Philippines has had trouble providing jobs to the hundreds of thousands of educated employees attempting to enter the workforce each year has caused a significant portion of the population to migrate overseas to seek employment in other countries. The rapidly growing offshoring industry, however, has provided Filipinos local opportunities, allowing them to remain in their homeland. This has been a win-win for both businesses seeking to outsource and to the Philippines itself. The companies outsourcing to the Philippines are having very little trouble finding highly qualified people to work for their companies, while Filipinos are able to remain in their home country and stimulate their home economy. In addition, Filipinos, by their very nature, are often very creative and expressive people who choose careers in creative design and multimedia arts. For that reason, many highly qualified Filipinos enjoy working for CAD companies, such as our own.

    Very Similar to a Westernized Country

    The Philippines is culturally very similar to many western countries including the United States. The Philippines was an American colony for 50 years and many of its people greatly enjoy the American pop culture. Filipino people are well versed in and comfortable with American, British, and Canadian cultures, embracing their style, entertainment, and work. Not to mention, the Philippines has a similar legal framework to that of the United States. For example, its labor laws are organized and comprehensive which is why many western countries feel extremely comfortable doing business in the Philippines.

    Increased Government Support

    Over the past years that outsourcing has been growing drastically within the Philippines, the Filipino government has been firmly supporting the industry’s growth. The government supports offshoring and outsourcing by creating bills that support the benefits and safety of all outsourcing professionals. The outsourcing industry is the second largest, by GDP contribution, in the country. The Filipino Government has been attempting to assist and support the industry’s growth. For example, the government created special economic zones managed by the Philippine Economic Zone Authority. Businesses located within these zones receive tax incentives and holidays and other forms of government assistance to encourage their ongoing investment within the country. The Philippine government is building the country brand to promote investment through increased visibility.

    Outsourcing has become a major trend over the past decade as it offers companies incentives including allowing them to focus on their core business processes The ultimate benefit achieved in this new-era of outsourcing is the creation of jobs on a global scale at a cost that is competitive, leading to an increase in your bottom line. If you would like to learn more about why CAD Sourcing has chosen to outsource its processes to the Philippines, please contact us today.

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