7 Reasons Why Australians Outsource to Philippines

For many years, the Philippines has established itself as one of the most popular outsourcing destinations for multi-national companies and businesses from different countries. One of the countries that consistently outsource to the Philippines is Australia.

But why do many Australian businesses prefer to outsource to the Philippines?

Reasons why many Australians outsource to Philippines

The high English proficiency in the Philippines is just one of the many factors Australian businesses consider when outsourcing. The skillsets and ICT infrastructure are some of the available resources that give advantage to Australian firms.

But other than these, many Australians outsource to the Philippines because of:

  1. Cost competitiveness

Business owners, in particular start-ups, take advantage of the lower costs when outsourcing tasks like bookkeeping and accounting. Some companies have built an offshore team to reduce local employment costs and occupancy. Offshoring can potentially reduce 70% of the office overhead costs.

To give you an idea, offshore costs in the Philippines can range between $5 to $8 per hour. While this depends on the role you are outsourcing, the average monthly salary of a staff from the Philippines is equivalent to around a fifth of a salary in Australia.

outsourcing cost

  1. Available skilled workforce

Some Australian firms are able to expand their market reach because of the support from their offshore staff. For others, the impacts are reducing cause of delays and achieving more realistic goals.

These advantages are possible because of the diversity of skills available in the Philippines. In the recent years, many Philippine professionals are able to learn the Australian business processes such as accounting as more Australian BPOs are established in the country.

  1. Closer time zones

Australia is only two hours ahead of the Philippines. Adjustments on business operations won’t be much of a challenge because of the minimal time zone difference. This promotes work-life balance among teams as there is no need for graveyard shifts.

  1. Focus on core activities

Offshoring is a clever way to delegate tasks while you make time for other opportunities. Some of the keys for proper delegation are: finding the right person to do the task, providing clear instructions, and utilising a project management tool where you can assign and monitor deadlines.

It is a big factor if your outsourcing service provider provides you with timely feedback on your team’s performance, as well as technical support.

proper task delegation

  1. Cultural similarities

Cultural difference is one of the reasons why some business owners remain reluctant to outsourcing. As we take a closer look on these differences, we also miss out the similarities. For example, the warm and friendly nature of Filipinos make it easier for them to get along and work with Australians.

BMG Outsourcing makes an effort to bring together two cultures by building a harmonious workplace for all. One of the ways to do so is introducing new employees to the Australian culture. We believe that a great team environment is crucial to become more efficient in getting things done.

  1. Access to support

It is necessary for outsourcing service providers to provide technical support to their clientele.  But it is an advantage if your chosen outsourcing service provider is able to give other support such as online marketing services.

  1. Reduce business risk

The pandemic caused economic conundrum, affecting many companies and countries. This impacts the overall performance of the business.

Offshoring is a great way to avoid, or at least reduce, the business risks brought by such conundrums. For example, you won’t be directly affected if energy costs go up to the area where your outsourcing service provider is located.

Want to start outsourcing today?

We are here to help you get started!

Feel free to reach out to us by sending your enquiry to info@bmgoutsourcing.com.au. You may call us directly at 02 9979 5033.