Business Process Outsourcing (BPO) revenue in the Philippines is expected to grow 9% each year until 2022. Although the country is primarily known for voice services, it is also sought for high end business solutions like accounting.
The benefits of outsourcing are well documented, from relatively smaller costs to greater overall efficiency. If you’re thinking of outsourcing to the Philippines, this guide will help you get started.
Why outsource to the Philippines?
The Philippines has an enviable reputation for outsourced services. Here’s why you should consider outsourcing to this country.
Talent pool – The Philippines is home to thousands of qualified accountants. According to the Business Mirror, 2,842 newly graduated Certified Public Accountants (CPAs) did oath taking at the Philippine International Convention Center (PICC) and other venues in 2018 out of 9,830 who took the licensure board examinations May 2018.
That’s equivalent to a 28.9% passing rate, which means that the licensure board sifts through thousands of examinees to ensure that only the best ones are allowed to practice.
Moreover, there are 466 schools in the country – one of the highest numbers of accounting schools in all of Asia – which means that the training is there.
Outsourcing gives you access to this vast talent pool, allowing you to secure talent that may not be available to you in-house.
Cost – The costs are also much lower. According to PayScale, the average accountant in the Philippines makes Php176,000, or approximately $3,440, per year. By comparison, the average annual salary of an accountant in the United States is $50,646.
Filipino accountants may be paid per hour or per project. The rate will also depend on whether they’re working part-time or full-time.
Types of accounting and financial services
How to choose the right BPO
When looking for a BPO partner in the Philippines, the first thing to look at is the firm’s reputation. Any outsourcing company worth its salt will have a proven track record for service delivery. A reputable company has a long list of satisfied clients who are eager to vouch for their work.
A legitimate company has an online presence, a physical address, and updated contact information. They are also registered with the Securities and Exchange Commission (SEC) and other relevant bodies, with permission to operate in the Philippines.
Likewise, their accountants are fully educated, qualified, and experienced, with license to practice their profession in the Philippines.
Obtain information on the tools and software they use to render services and find out what that means for your business. It will be up to you to determine if they can truly handle data volume, whether their systems are secure or not, and how flexible and reliable their protocols are when it comes to providing services.