The Philippines has become a popular destination for businesses looking to outsource their operations. Due to the country's well-educated workforce, low labor costs, and favorable business environment, more and more companies are choosing to move their operations here. In this blog post, we will take a look at some of the most well-known global companies that have outsourced in the Philippines.
What are the well-known US companies in the Philippines and what do they do
The first one on the list is not just one company but the big 4 accounting firms. They are PricewaterhouseCoopers or PwC, Deloitte, Ernst & Young (EY), and KPMG. These four companies provide a variety of services such as auditing, tax advisory, and consulting. The Philippines has already proven to be a great contributor to the global accounting industry, and it is regarded as a destination for talented knowledge workers sought after by the largest professional service firms.
Global banks and payment processors have also outsourced to the Philippines. Companies such as JPMorgan Chase, Bank of America, Citigroup, and American Express have all set up operations in the country. Banks need to know that their customer's data is safe and secure and that is exactly why they choose to outsource to the Philippines. Although a company must always put controls in place to protect their data, the local culture encourages loyalty and integrity.
Big Tech such as Google, Facebook, and Amazon have also followed suit. They have all set up data centers in the Philippines which helps with the smooth running of their global operations. With the participation of big tech in Philippine IT outsourcing, the future could see a shift as the industry could one day rival India's IT outsourcing industry.
Although this next one is not a US company, a special mention to Canva, an Australian based tech unicorn startup, which has Philippines outsourced center focused on creative and design services. Shows the versatility and wide range of skills that can be outsourced to Philippine talent.
Why the Philippines?
There are many reasons why the Philippines has become such a popular destination for outsourcing. The first reason is the availability of a skilled workforce, as mentioned earlier, some of the most respectable companies have outsourced a variety of roles ranging from professional service, customer service, information technology and design. The country has a large population of English speakers, a well-educated workforce and a culture that has strong relationship with US and other Western nations. This makes it easy for companies to find employees who can communicate effectively and integrate with the US based companies.
Another reason is the low cost of labor. Cost of living in the Philippines is much lower than in the US or other Western countries, making it an attractive option for companies looking to cut costs. The country also offers a number of tax incentives and other benefits that make doing business here more advantageous.
The Philippines also has a very favorable business environment. The government is very supportive of businesses and there are a number of agencies that provide assistance to companies looking to set up operations in the country. The infrastructure is also good, with a number of modern facilities and a strong telecommunications network coupled with Elon Musk's Starlink reportedly inking a deal with the Philippine Government and eyeing full coverage by mid-2023.
Conclusion
The Philippines has become a powerhouse for outsourcing services and it’s easy to see why. From Big 4 Accounting, Big Banks and Big Tech, they just can't seem to have enough of Philippine talent. If you’re looking for a company that can help you get started outsourcing to the Philippines, look no further than GFT. We have experience helping businesses just like yours set up and manage their offshore accounting and finance operations in the Philippines. Contact us today to learn more about how we can help you take your business to the next level.
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