The Philippines produces around 80,000 IT graduates every year. It is also the most literate country in the region – beating Singapore.
Outsourcing has helped quite a lot of businesses over the years. The list of beneficiaries includes startups, one of the most vulnerable in the tech industry. These new businesses have a lot at stake, so it is important for them to take precautions for every step they take – especially when it comes to their mobile software development. Startups do not only need money but also the right people for the job. This is where outsourcing comes in.
Outsourcing to the Philippines
The Philippines is considered one of the most popular countries for outsourcing a variety of jobs and tasks. In fact, it is ranked among the top five in the list of Asia’s best outsourcing destinations. It is a favorite choice of startups looking for quality services in general IT services, website design and development, and mobile software development.
According to the Philippine Software Industry Association (PSIA), there will be approximately 200,000 IT workers in the country by 2022. The IT sector also contributes significantly to the universal market. Likewise, the Philippines is included in the list of the top 30 countries in the world possessing a high number of software specialists who can confidently communicate in English.
The above-mentioned facts are not the only reasons why startups should outsource their mobile software development services to the Philippines. There are many others.
Why Choose the Philippines?
The top 12 reasons why startups choose to outsource to the Philippines
1. IT workers in the Philippines are highly educated and well-trained.
Additionally, it has almost 80,000 IT graduates every year. Training and education continue even after school as companies regularly offer updated learnings such as seminars, conferences, certifications, and trainings). This is one of the many reasons why Filipinos are regarded as experts in mobile software development in the Asia-Pacific region.
2. According to the United Nations, the Philippines is the most literate country in Southeast Asia – beating Singapore.
Based on 2019 statistics, the literacy rate in the Philippines is at 97.95%. Software companies in the country hire college graduates. Their recruitment process is quite rigid. Applicants go through different stages, including an IQ test, interviews with top management, and weeks-long training. Once accepted, new hires go through a mandatory six-month probationary phase.
3. The Philippines has a strong, fast-growing, and dynamic IT industry.
Its IT workforce has varied specialties, such as PHP, ASP.NET, Python, and website design. Additionally, it values emerging technologies, with a significant number of software development companies adopting AI and blockchain. There are also quite a lot of mobile software development specialists.
4. The Philippines’ IT infrastructure is rapidly growing.
It launched 5G technology in 2019 – making it the first country in Southeast Asia to implement the rollout. This recent development could rival the internet speeds of Japan, Hong Kong, and South Korea. The country’s IT infrastructure is part of an industry that offers the latest technologies in high-speed fiber optic internet connections. Coupled with more than $177 billion in new roads, bridges, skyways, expressways, railways, and airports, the Philippines is in its “Golden Age of Infrastructure”.
5. Filipino workers have excellent English skills, which is vital for ensuring proper communication.
In fact, English is regarded as a second language and is used throughout the country. Moreover, the Philippines is significantly westernized. It is ranked 20th in the world and 2nd in Asia in terms of English proficiency.
6. The Philippines is one of the top five countries in the APAC (Asia-Pacific) region when it comes to IT work.
7. Among the world’s developing countries, the Philippines has one of the lowest labor rates.
This means startups can considerably cut down their operational costs. Moreover, outsourcing mobile software development processes does not require businesses to spend on recruitment fees and infrastructure expenses.
8. Foreign currencies fare quite well in valuation and the cost of living is lower compared to Western countries.
9. The Filipinos are quite adept in speaking English with an American / neutral accent.
Generally speaking, Filipinos have better accents compared to other Asians. The United States colonized the Philippines for 48 years, so it is not surprising that Filipinos have adopted Western cultures for generations. The Philippine education system, for instance, uses American English as one of its primary languages. Television ads and programs also use the English language. Most multinational corporations in the country prefer employees who are well-versed in the English language.
10. Philippine IT companies can provide startups with a wide and varied pool of talents.
Startups do not have to hire additional workforce for their software development projects. All they need to do is provide their Philippine counterpart with a list of requirements and they’ll get their pool of talents in no time – and at no extra cost.
11. With a wider talent pool, startups have access to world-class knowledge, skills, and experience.
Filipinos are also known as hard workers, persevering even in the most challenging situations. As such, startup mobile software development companies are assured of improved efficiency and an increase in productivity.
12. Startups can have significant reduction in business risks.
As mentioned earlier, outsourcing to the Philippines costs lower because of inexpensive labor rates. What this means for startup companies is a significant reduction in business risks in terms of finances and overall business management.
The Philippines is an ideal choice for outsourcing mobile software or app development services. There may be minimal challenges – such as different time zone (12 hours ahead – ETZ/EST) and the numerous official holidays – but the benefits more than pay for your investment. Outsourcing will also guarantee you more time to focus on other essential projects and tasks, which can significantly contribute to the growth and development of your startup.
Best of all, outsourcing mobile app development to the Philippines can help resolve the three most common pitfalls of startups: money, knowledge, and the right workforce.
Photos courtesy of the Commission on Higher Education (CHED) and EF English Proficiency Index.