Australian Companies: Why They Choose Offshoring to the Philippines

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In recent years, offshoring business processes has become a popular way to cut back on expenses and get menial tasks done more efficiently. While there are a few different options in regards to the country you may choose to outsource to, more Australian companies are outsourcing/offshoring to the Philippines every year.

Why do these Australians outsource to the Philippines, and why might this be a good move for your company as well? Let’s talk about the benefits of offshoring to the Philippines and why this could be the perfect fit for your business.

Cutting Back Costs

The cost of living in the Philippines is significantly lower than in other Western countries. In fact, living costs may be up to half of what they are in Australia!

Obviously, this means that wages are also much lower than in other countries. Your company benefits from this arrangement due to the cost reductions of offshore workers. You’ll be getting the same tasks accomplished for as little as half of what it would cost you to employ someone in Australia!

Another reason that offshoring to the Philippines saves you money is due to the similar time zone. Since the working hours there are pretty much the same as in Australia, you won’t have to pay for a night shift. (We’ll talk more about the benefits of a similar time zone below!)

Plenty of Talent

Education is a high priority in the Philippines. In fact, the education system has been modeled after the United States and parts of Australia. In recent years, they have converted to the program of K to 12, meaning that youngsters are getting a fantastic opportunity for better education.

Also, due to the incredible increase in outsourcing/offshoring to the Philippines, this industry has changed its reputation in the eyes of many Filipinos. Now, positions as offshore workers are considered typical middle-class jobs, and are highly sought after. This competition breeds better workers for companies who want to offshore to the Philippines.

In fact, many universities now offer specialised courses and training that helps students learn how to do outsourced tasks, and provides them with the skills needed to be very valuable to Australians offshoring to the Philippines.

Continued Economic Growth

The economy of the Philippines has greatly stabilized in the last few years due to alignment with other governments and the good relationship this country maintains with the United States. More than this, the Philippines has been nurturing an environment of economic growth. This pattern shows no signs of slowing down, but instead is constantly increasing.

Language Advantages

The priority of a company looking to outsource will probably be the English language level of the workers. When Australians outsource to the Philippines, language is not a problem.

In fact, Global English has conducted a study regarding Business English skills around the world, rating each country on a scale of 1 to 10 in their Business English Index. The Philippines ranked one of the highest on this list, achieving an unprecedented 7.1. They easily beat out competitors like India (ranked at 5.5 BEI), China (4.4 BEI), or Malaysia (6.0 BEI).

This is due mainly to the fact that the Philippines was governed by the United States until the late 1900’s, meaning that English was used widely. Beyond that, the Filipinos have kept up their English skills since they achieved independence.

English is taught in schools from an early age. In fact, it is the second official language of the country. Movies or television shows that are originally in English are not normally subtitled, and it is the norm for the business world to communicate in English.

Thus, from a young age up until adulthood, Filipinos learn and use English in daily life. Also, Filipinos are known for having a very neutral accent when speaking English, making their language skills even more valuable for Australians that outsource to the Philippines.

High Literacy Rate

With education being such a high priority in the Philippines, it’s not a surprise that the literacy rate for the country is very high. However, the astonishing rate of 97% literacy beats all expectations. Compare this rate with India, at 72%, and you’ll see that offshoring to the Philippines is truly a great investment.

Similar Time Zone

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The time difference between Australia and the Philippines is minimal. Between Eastern Australia and the Philippines there is a slight difference of 2 hours, but Western Australia is actually on the same time zone as this Asian nation! This leads to a number of different benefits when Australians outsource to the Philippines.

We’ve already mentioned that the time zone similarities result in monetary benefits to Australian companies that offshore to the Philippines. However, this also means that work can be done simultaneously, and without interruption.

This working condition means easier adaptability for the Filipino workers, and has more long-term success. It may also lead to higher productivity in workers.

Government Support

The government of the Philippines has taken note of the increase of the offshoring industry in their country. As a result, they have taken steps to make the process easier and more appealing to Australians that outsource to the Philippines.

In this regard, the government has initiated financial incentives such as tax holidays, duty waivers, and reduced taxes. Also, the government has provided more resources for training and education in the field of offshore working. These initiatives make outsourcing/offshoring to the Philippines more appeal to outsourcers, and also to the Filipino workers.

Infrastructural Improvements

In recent years, infrastructure in the Philippines has continually improved. This means better and more plentiful office spaces available for BPOs, and higher connectivity to the internet. Transportation has also improved, meaning that BPO centers are linked by highways and commuter railways.

Not only that. There is an opportunity in the Philippines for the growth of the transport outsourcing industry. This means, you can literally outsource part of your operations in the Philippines and let local staff handle the warehousing and transport of your delivery goods. If you are doing business in the Ecommerce and dropshipping fields, these advancements in transportation within the Philippines can be extremely beneficial. More savings for you in terms of inventory management, especially if you have a market in Southeast Asia. 

All of these measures have and will continue to contribute to the growth and efficiency of offshoring to the Philippines.

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Australians who choose offshoring to the Philippines find that the benefits are outstanding. These companies are able to improve efficiency and marketability for their company, all while lowering business process costs. Take advantage of this great opportunity to outsource processes such as IT services, accounting, SEO, and more!

Outsourced Quality Assured, Inc. is a leading IT outsourcing company that continues to dominate the IT BPO Philippines market. We offer high quality outsourced it services and provide a highly professional offshore staff for businesses worldwide. As one of the leading IT BPO Solutions expert today, our goal is to find and place exceptional remote staff who are sure to exceed your expectations. 


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