Outsourcing To The Philippines: Pros, Cons & More

The Philippines is one of the top destinations where major corporations outsource their business needs. Doing so allows businesses to keep overhead down on expenses such as office space, equipment, internet connection, taxes, and even benefits.

Even though this provides significant cost savings to business owners, it also greatly benefits a Philippines-based virtual assistant. They get to work from home, be closer to family, and remove 2-4 hours of daily commute all while taking in a great wage.

Benefits of Outsourcing To The Philippines

1. Strong Work Ethic

Filipino people are globally known to be loyal and hard-working. The deeply rooted spirit of being family-oriented is a great benefit as an employer. Professionals in the Philippines are experienced in a variety of industries and are often college-educated as well. They’re hungry for consistent work and fiercely loyal when allowed to be a contributing member of any team. 

2. English Proficiency

The Philippines boasts a 95% literacy rate wherein the medium of instruction is mainly in English. Many companies outsource jobs to the Philippines because the accents of Filipinos are primarily neutral. This means they can easily be understood by Western customers.  Furthermore, the Philippines is currently ranked #22 out of 100 countries globally on the English Proficiency Index.

3. Education

Outsourcing to the Philippines offers a significant advantage due to the country’s strong education system.  Every year, universities in the Philippines graduate a large number of qualified individuals, with a 92% literacy rate ranking among the highest in Southeast Asia [source: World Bank]. The Philippines has been recorded to have a high English proficiency rating of 60.59. This, combined with the historical US influence resulting in widespread English fluency, creates a vast pool of talented workers. 

4. Lowered Employment Costs

Hiring a local assistant can be surprisingly expensive. Beyond the initial advertising and interviewing, there’s onboarding, equipment setup, and training. Then there’s the ongoing salary, insurance, benefits, and providing office space with amenities. 

Since the cost of living is lower in some countries like the Philippines, VAs from there can offer competitive rates.  You pay a flat monthly fee that covers everything, eliminating the significant overhead associated with traditional employees. This lets you access experienced and qualified virtual assistants without the burden of hidden costs.

5. Reduced Liability

Hiring a virtual assistant can qualify as a deduction from the taxable income of 50% of labor expenses and consigned equipment. Additionally, all legal risks are transferred to the outsourcing provider. As mentioned earlier, this provides significant cost savings as well. 

One less employee at your office means less opportunity for workplace incidents, like physical accidents, interpersonal drama, and illness spreading. This benefit to liability also extends to their work performance; when your local employee makes a mistake it’s on you entirely. If a VA makes a mistake (not likely!) we take responsibility and will work with you to resolve it accordingly.

6. Timezone Neutral Work

The time zone difference between the US and the Philippines, with the Philippines being 12-15 hours ahead, can be a major advantage for businesses. This allows for a seamless handover of tasks.  Your US team can finish their workday knowing the virtual assistant team in the Philippines can pick up where they left off, essentially creating a 24/7 workflow. This translates to faster project completion, improved responsiveness to customer needs, and ultimately, a competitive edge for your US business.

7. Increased Productivity

Filipino virtual assistants can be your secret ingredient to significantly increasing productivity. Their expertise in handling administrative tasks like email management, lead nurturing, and more, free you to focus on strategic initiatives. Known for their strong English communication and cultural adaptability, Filipino VAs can also seamlessly handle tasks like social media management and customer service, ensuring a positive client experience. By delegating these time-consuming jobs to a skilled Filipino VA, you’ll reclaim valuable time and energy, propelling your business toward increased productivity.

Potential Drawbacks of Outsourcing to the Philippines

1. Less Control and Oversight

Managing a remote Philippine team requires establishing clear workflows and communication channels upfront. Since in-person check-ins are limited, utilizing project management tools and performance measurement metrics becomes essential to ensure tasks are completed efficiently and to your standards.

2. Time Zone Differences

Depending on your location, there could be a significant time difference between you and your virtual assistant (VA) in the Philippines. This can make real-time communication and collaboration challenging. Scheduling overlapping work hours or utilizing communication tools like project management platforms can help bridge the time gap.

3. Understanding Your Industry

Philippine VAs often have strong English skills and general business knowledge, but they might lack specific experience in your niche. Be prepared to invest time in training them on your industry’s terminology, processes, and regulations to ensure they can deliver high-quality work aligned with your expectations.

4. Internet Connectivity Issues

The Philippines continues to develop its infrastructure, and occasional internet outages can occur. Discuss your VA’s internet backup plan and establish alternative communication methods (like mobile data) to minimize workflow disruptions caused by connectivity issues.

5. Intellectual Property (IP) Protection

While uncommon, there’s a potential risk of your ideas being misappropriated.  Mitigate this by having clear contracts outlining ownership rights and confidentiality clauses. Open communication about the importance of IP protection with your VA will further safeguard your business interests.

What Tasks Can You Outsource to the Philippines?

Marketing Assistance

A virtual marketing assistant, even remote, can be a marketing powerhouse for your business. They can manage social media, craft email campaigns, design graphics, and research your target audience. This frees you up to focus on strategy while they handle the day-to-day tasks, boosting your online presence and brand awareness.

Administrative Work

Virtual assistants can streamline your admin tasks. Imagine having them manage your calendar, emails, and travel arrangements. They can also handle data entry, organize documents, and even answer basic inquiries. This frees you from administrative burdens, letting you focus on core business activities.

Customer Service Support

Virtual assistants can transform your customer service. They can answer customer inquiries via email, live chat, or even phone calls. They can handle basic troubleshooting, process returns, and even escalate complex issues. This allows your team to focus on resolving intricate problems while VAs ensure prompt and friendly customer support.

Recruitment Help

A virtual recruiting assistant can become your secret weapon for hiring. They’ll scour job boards, screen resumes based on your criteria, schedule interviews, and even gather candidate information. This frees you up to focus on interviewing top talent and making the perfect hiring decisions, streamlining your recruitment process and saving you valuable time.

Sales Support

A virtual sales assistant can supercharge your sales. They’ll prospect for leads, qualify potential customers, and even schedule appointments. They can also draft personalized emails, manage your CRM, and handle post-sale follow-ups. By taking care of these time-consuming tasks, your sales team can focus on closing deals and boosting your bottom line.

Real Estate Tasks

A real estate virtual assistant can manage lead nurturing by crafting email campaigns and following up with potential clients. They can also draft property descriptions, generate virtual tours, and even schedule appointments for showings. This frees you up to focus on building relationships with clients and closing deals, keeping your real estate business running smoothly.

Finding the Right Outsourcing Partner

Are you thinking of outsourcing your business needs to the Philippines? It’s easier and faster than hiring an assistant yourself. LinkedIn reports that the average time to hire is 41 days, but at MyOutDesk we can have you onboarding your ideal candidate within one week. We utilize a free strategy consultation to understand your needs, before providing you with several experienced and proven professionals to choose from. Once you’ve made your selection they can hit the ground running for you, as we always match by industry and job responsibilities. You’ll only need to train your virtual assistant on things specific to your company. In other words, it’s low risk, high reward.

Outsource your virtual assistant services today! Schedule your business strategy call and find out how a MyOutDesk virtual assistant from the Philippines can help grow your business! Remember, if you don’t have an assistant, you are the assistant.

Frequently Asked Questions

Why Do U.S. Companies Outsource to the Philippines?

Companies outsource to the Philippines for several reasons. The main draw is cost savings, due to the lower cost of living compared to many developed nations. Filipinos are also known for their strong English skills and large, well-educated workforce. The Philippines boasts a supportive government for the Business Process Outsourcing (BPO) industry, with infrastructure to ensure smooth operations. 

What Types of Companies Outsource to the Philippines?

Many companies outsource to the Philippines, from tech giants to healthcare providers.  Tech companies like Google and Amazon leverage Filipino talent for tasks like IT support and software development.  Financial institutions such as Wells Fargo benefit from their expertise in customer service and data processing. Even healthcare companies like UnitedHealth Group utilize Philippine VAs for tasks like medical coding and insurance processing.