The Outsource IT to Philippines Blog

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The business industry has always been dynamic. It is with its ever-changing ways to best competitors and pursues the quest for innovations. They adapt to the demographic and the market they offer services to. Business owners are developing new marketing and business strategy that debunks the traditional business models. Hence, giving birth to one of the many strategies- outsourcing. In this day and age people, consciously or unconsciously, outsource something. It’s not only limited to large corporations but small and medium enterprises benefit from it as well. Over the years, it has spread throughout different states and countries. Asian countries have always been dominating the list of the leading outsourcing destinations for over 3 decades now. However, the main driving factor for this dominance is the availability of skilled resources, superior communication skills in multiple languages, and lower costs.

The Philippine economy is showing no sign of slowing down. In fact, it isn’t a surprising forecast anymore that the country’s gross domestic product (GDP) growth will rise up. A significant factor that contributes to this exponential development is the Philippines’ two top earners of foreign exchange: overseas Filipino workers (OFWs) remittances, and the Business Process Outsourcing (BPO) industry’s revenues. In 1993, the first contact center for outsourcing was built in the Philippines. The local government noticed a promising opportunity and established a special economic zone to support outsourcing in 1995. This was to encourage more foreign companies to have their customer support centers in the country. Since then, many hundreds of outsourcing companies have built business operations in all parts of the Philippines. Homegrown outsourcing firms have also emerged over the past decades. Springing out from the different parts of the country including in Davao city.

Davao is one of the largest cities located on the island of Mindanao. It has now emerged as one of the most preferred outsourcing destinations by global companies. Outsourcing to Davao City has helped many companies gain access to a talented pool of resources, better infrastructure, and lower operational risks. The city provides the best outsourcing environment for companies to avail quick and cost-effective services. This is mainly due to its large native, English-speaking population of fresh graduates with an American accent. A combination of skilled voice-process executives and the cost advantage – a preferred choice for outsourcing voice processes. The government is keen on building better infrastructure that supports the outsourcing boom in Davao and other major cities of the Philippines for future expansion.