A couple of decades ago, the explosion of the business process outsourcing industry has brought many jobs to Filipino professionals mainly in the field of customer service. Other disciplines have also followed and continue to expand up until today. This includes data entry and processing, marketing, medical coding, IT-enabled services and other knowledge-based outsourcing disciplines. However, the case is different when engaging with payroll outsourcing in the Philippines.
There are a lot of companies that outsource payroll processing in offshore locations like India and the Philippines but it is still relatively small compare to its market size. Though it has progressed from the time it was introduced, the industry saw slow growth at the start mainly because business owners are concerned with data security and confidentiality that could put the company at risk.
This has dramatically changed when payroll service providers have invested in top-notch payroll software, data security, encryption technology and office security system. These countries have been long engaged in outsourcing project to nearby and offshore locations but the Philippines have increased its popularity in payroll outsourcing services.
United States
The US is considered as the Amazon in the outsourcing market. According to Statista, the market size in the Americas amassed $62 billion in outsourcing value in 2019. Outsourcing payroll in the Philippines has gained traction in the US market since more payroll specialists have become knowledgeable and experienced in top payroll software in the market. Some companies would require to outsource one or more functions in their payroll department.
United Kingdom
Joining the bandwagon in outsourced payroll is the UK. The UK has followed the lead of the US in outsourcing jobs to the Philippines for a lot of advantages in cost-saving, talents, location, regulations and high English-literacy rate not to mention Filipinos can easily imitate the British accent.
Australia
The proximity down under has long been an outsourcing partner of the Philippines. Cost-advantage and English-speaking country have been the main drivers for the Philippines’ outsourcing market however it’s the timezone that both countries share allow outsourcing jobs to attract more talents to work during daytime. therefore Australian companies can save more on salaries and night differentials.
Payroll services in the Philippines have increased popularity for the Australian market as Filipino payroll professionals are well-adept in popular payroll software in Australia such as Xero and MYOB.
Singapore
From within the neighborhood is Singapore. Close economic ties within the region allows the island-city state to aggressively expand in the Philippines. The growing economy is also a contributing factor that enables several multinational brands and small businesses to open a branch office in the country to test the water in the local market. Some of these companies don’t have a business entity, HR payroll service providers are their legal representation in the Philippines.
Malaysia
Another one from the region is Malaysia. Surprised? In the BPO sector, Malaysia has been a top choice for companies in the field of finance and accounting. Despite Malaysia has a low English-speaking population, their language in business and finance are excellent due to the fact that the country produces high-caliber graduates and working professionals in the field.
Malaysia has seen the Philippines as a third-party outsourcing partner in payroll processes mainly to help them maximize their revenue potential.
Therefore, if the Philippines would focus on producing and training more Filipino professionals in the field of business and finance, the payroll outsourcing market for the country will be shining brightly.