The Benefits of Expanding Your Business to the Philippines: Tips and Upsides


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Business outsourcing has been a popular way for companies to manage workloads and resources. It is a process where a company transfers specific business processes to another company or a third-party service provider.

The outsourcing process has been around for many years but has significantly increased in adoption, especially in the Philippines. Business outsourcing has also changed hiring in the Philippines, and it has even become one of the top outsourcing destinations in the world.

The increased outsourcing is due to increased globalization and competition in the marketplace. Expanding or starting a business in the Philippines through outsourcing can be strategic since it’s located in the heart of Asia and is considered one of the fastest-growing Asian regions.

The Philippines is one of the top locations for business expansion because it has a relatively low cost of living, good infrastructure, and a skilled labor force. It also has a relatively low cost of living, good infrastructure, and a capable labor force. The country’s GDP steadily grows year on year.

Filipinos have a good background in Western and Eastern cultures, too. The country also attracts foreign investors and entrepreneurs because of recent developments that make it easier to secure business permits in the Philippines

Why is the Philippines one of the best countries for business expansion?
Here are the most notable reasons foreign investors and entrepreneurs build their businesses in the Philippines.

Low labor costs

Foreign investors can benefit from minimal labor costs. The Philippines’ average salary and remuneration packages are generally lower than other parts of the world.

Strategic business location

As mentioned, the Philippines is located in the heart of Asia and is a critical entry point to Asian and Western markets. Notable financial countries are nearby, including Japan and Singapore.

Investment-friendly regulations

The Philippine government establishes business-friendly regulations for local and foreign investors. Special tax incentives and laws such as TRAIN Law and Revised Corporation Code encourage more foreign investors to expand their business here in the Philippines because of such benefits.

Ongoing infrastructure development

Even though the Philippines is an archipelago, its more than 7,000 interconnected islands are accessible by land, inter-island shipping, and aviation. Container terminals have adequate resources to handle cargo traffic with utmost efficiency.

The use of fiber optic cables in networked communications and satellites as backup provides 24/7 connectivity for local and international enterprises. Moreover, economic reforms focus on converting remote areas into business hubs, so your business can leverage regional growth.

Unlimited business opportunities

The Philippines supports free trade agreements, making it a suitable location to start a business that welcomes foreign investors. In return, the presence of international brands lets customers choose from a wide assortment of products or services that cater to their needs.

Access to a highly educated pool of talents

The Philippines is home to highly educated pools of talent, which can be a lot of help, especially to foreign businesses. The country has a literacy rate of 91.6%, with more than half a million college graduates entering the workforce yearly.

No wonder the Philippines is a top favorite among the U.S., British, and Australian employers looking for offshore talent to join their teams.

Things to Consider Before Expanding Your Business in the Philippines

If you are a foreign entrepreneur seeking to grow your business in the country, you need to consider these factors that can affect your business expansion plans.

1. Established customer base in the Philippines

Before planning for a business expansion in the Philippines, ensure there is a market for your brand and its products or services. The Philippines is highly familiar with Western cultures, owing to the country’s colonization by the U.S. for several decades. As such, it would be best if you considered the viability of your product or service and whether you see your brand grow in the country.

2. Specific location to open the business

When it comes to the business perspective, opening a branch or a flagship store in Manila is best. However, the capital could already be congested and have a lot of competition from local businesses. It would be better if you could personally visit your target location and see if it is accessible to your target market.

If you plan to open a branch in a special economic zone, you can check which city is the best choice. Besides Manila, Makati, Taguig, and Quezon cities are some of the country’s most progressive business hubs. Outside Manila, leading cities known for business expansion include Davao City and Cebu City.

3. Where to find local talents

Nowadays, most employees prefer remote work arrangements, allowing them to work from or near their homes. Determine if the tasks can be done in a remote setting. Some companies also adopt a hybrid work location to attract employees who welcome going to a physical office when they’re not working from home several times weekly or monthly.

4. Immersion in the local culture

As a potential employer of Filipino workers, you should also be familiar with the local culture. For example, Filipinos value families and friendships, so it would help if you established a supportive relationship with your employees in the Philippines.

Filipinos also tend to be more loyal to the brands they grew up with. Hopefully, that will inspire you to build a company in the country for the long haul.

5. Deciding whether to stay in the Philippines or operate remotely

When opening your business in the Philippines, forming a remote team or hiring a representative can be a good idea. However, it is better to be hands-on in the initial stages of the business establishment to ensure that your team performs optimally and maintains business stability.

Final Thoughts

The Philippines is one of the fastest-growing economies in the world and has a long history of being an excellent outsourcing destination. The country is home to thousands of highly-educated job candidates and has business-friendly regulations, making it a top destination for companies expanding their operations and markets.

Indeed, it’s in your best interest to capture worldwide audiences by outsourcing to the Philippines.

Dianne Carillo
Dianne Carillo is the Marketing Communications and Brand Manager at PureB2B, a lead generation company that help accelerate on business solutions and technology sales processes. Dianne loves reading and is especially knowledgeable in both sales and lead generation techniques and trends.


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