Overview
The Philippines has long been an outsourcing partner of Singapore since decades ago. In fact, it is currently one of the top contributors to the country’s booming IT-BPO industry contracting services for payroll, accounting, sales, IT, and other back-office functions. Similar to other countries, the main reasons for Singapore-based firms outsourcing to the Philippines are cost advantages and the labor market. However, the battle for talent in Singapore has further intensified, compelling more businesses to engage in remote staffing in the Philippines.
Market Pull
Amid the HR challenges which emerged out of the pandemic, Singapore, an island nation with a population of 5.5 million residents is currently facing a talent crunch for different business segments. Let’s discuss the current tug-of-war between the country’s top market pull which will only get bigger in the coming years.
Chinese Tech Giants
According to ThinkChina, Chinese tech giants who have set up regional centers in Singapore have sparked a major talent war in the country. Some of the big names including Alibaba, Tencent, and ByteDance have acquired quite a big slice of the tight labor market. These tech titans have earned the nickname “Big Factories” for their having a huge advantage with their hefty offers for high salaries, work-life balance and professional development have attracted a lot of Singapore residents to join these companies.
A Leading Global Business Hub
Singapore remains to be a leading global business hub where some of the world’s biggest companies in almost every industry are located. This means they comprise a large population of the labor market in the country. Most of these big firms invest millions of dollars just to retain and hire Singapore-based talents.
A Flourishing Startup Scene
The growing number of startup companies in Singapore has further cemented the country to be a leading financial and innovation hub in Asia. The government plays a huge role in their thriving and vibrant startup ecosystem from funding, grants, infrastructure, and access to markets to labor. This makes them sufficiently equipped to compete with big firms in the city-state.
Below are some reasons for Singapore-based companies to hire remote staff in the Philippines.
Access to World-Class Talents
The Philippines has long established itself as a country with exceptionally talented workers and professionals long before it made a name as a leading destination for business process outsourcing. With a young and vibrant demographic, the Philippines has produced a new generation of talented individuals that are geared to take on jobs that require high-level skill sets and knowledge-based tasks. In addition to being globally-competitive individuals, Filipinos have an amazing work ethic which is recognized by a lot of companies from all over the world.
English Language Proficiency
Singapore and the Philippines are two of the top Asian countries with a large population of English language speakers being the official language. While some countries in Asia have a good command of the language, Filipino English speakers have a more neutral accent that is close to the US. Today, the continuous growth of the BPO industry in the Philippines has paved the way for Filipinos to learn to communicate in tune with accents, linguistic nuances, and other modes of speaking of clients. This has been a great progression for Filipinos to easily relate to and understand the different cultures of various nationalities. The fluency of Filipinos in the English language is one of the major preferences for a lot of foreign companies to hire Filipino workers and professionals.
Cultural Ties
As both parts of the ASEAN community, Singapore is a valued partner of the Philippines for several decades in trade and security. The relationship between the two nations is strong not because it belongs to the geographical region but because they share a resemblance in terms of culture. Both nationalities are family-oriented which is the most fundamental aspect of fostering a long-lasting relationship.
Reduced Costs
Cost reduction is one of the major benefits of outsourcing and countries from the Western Hemisphere choose to contract jobs to the Philippines for this reason. Though, the deciding factor is more for maximizing profitability where some companies choose to stay and find their way around to survive and thrive. However, the global inflation rate continues to rise, compelling businesses to rethink their operating model and Singapore-based firms are no exception. Salary rates of Filipino professionals are relatively lower compared to local talents but are able to provide the same quality of performance and output, making it an ideal destination to hire remote staff.
Timezone Advantage
The Philippines share the same timezone with Singapore, a huge advantage for companies that have less preference in making some adjustments to their operations with regard to this aspect. This means working in line with the normal operating hours of the client, so expect output can be received in real-time. Meanwhile, a large population of BPO professionals works on the graveyard shift because they mostly serve western clients so offering to work on a dayshift which is more body clock-friendly has been a way for companies to help attract better talents.
Start Quickly
Hiring remote staff In the Philippines allows Singaporean businesses to start in a short period of time. This arrangement is shaped to lessen the rigorous process of outsourcing to the Philippines. Work with a trusted service provider who can line up profiles efficiently and arrange them for interviews before making the final pick of shortlisted ones onboard. You can start with a small number of Filipino staff and build your team remotely.
In conclusion, this way of engaging with Filipino staff remotely is to help you better understand the process. Today, it may not be a matter of time to explore this option anymore as the need to adapt quickly is crucial to surviving in an ever-changing business environment.
For remote staffing services, Grupo BPO can help you start quickly and grow from a few staff of highly talented Filipino professionals to a global remote team.