Unlocking Opportunities: Why technology companies should choose the Philippines?

Joel Lienard
May 15, 2023 

The global technology landscape is expanding at a rapid pace, and businesses need to identify strategic locations that offer growth opportunities and a competitive advantage. For companies based in the UK or in the US, outsourcing part of their development, support to The Philippines, with its favorable business environment, skilled workforce, and emerging market potential, has become an enticing destination for technology companies seeking new avenues of growth. In this article, we will delve into the reasons why technology companies should consider doing business in the Philippines and explore the advantages that this dynamic Southeast Asian nation has to offer.

Strategic Location and Gateway to Southeast Asia

Situated at the heart of Southeast Asia, the Philippines serves as a strategic gateway to a burgeoning regional market. With its central location and well-established infrastructure, the country provides convenient access to neighboring countries such as Singapore, Malaysia, Indonesia, and Thailand. This geographic advantage enables technology companies to expand their reach and tap into the immense potential of the Southeast Asian market, which boasts a combined population of over 650 million people.

Large population

The Philippines has a population of over 100 million people, making it one of the most populous countries in the region. This large population offers a significant consumer market and workforce for businesses to tap into.

Highly Skilled and English-Speaking Workforce

The Philippines is renowned for its young, educated, and English-speaking workforce, making it an ideal destination for technology companies. With a high literacy rate and a strong emphasis on education, the country produces a large pool of highly skilled professionals, including software developers, engineers, and IT specialists. This talent pool is further bolstered by the proficiency of Filipinos in the English language, which eliminates language barriers and facilitates seamless communication with clients and partners worldwide.

Innovation

Outsourcing development to The Philippines can also bring fresh perspectives and new ideas to technology companies. Philippine developers have a unique perspective on software development, which can lead to innovative solutions and ideas.

Cultural Affinity

The Philippines has a culture that is similar that of Western countries. Particularly the US. This cultural affinity can make it easier for Western companies to work with their Philippines counterparts, as they share many of the same values and work ethics.

Optimised cost

Outsourcing development to The Philippines can provide significant cost savings for technology companies. The cost of living in The Philippines is lower than in Western Countries, which translates to lower labor costs. Additionally, The Philippines government offers various incentives and tax breaks for foreign investors, further reducing the cost of doing business in the country.

Flexibility

Outsourcing development to The Philippines offers greater flexibility for technology companies. By outsourcing, companies can scale their development team up or down depending on their needs. This is particularly useful for companies that experience fluctuations in demand for their services.

Supportive Business Environment and Government Incentives

The Philippine government has implemented various policies and incentives to foster a favorable business environment and attract foreign investments. These initiatives include tax holidays, reduced tax rates, and streamlined registration procedures, enabling technology companies to establish their presence swiftly and cost-effectively. Additionally, the government has set up agencies such as the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI) to provide support and incentives specifically tailored for technology companies.

Robust IT-BPM Industry

The Information Technology-Business Process Management (IT-BPM) industry in the Philippines has experienced remarkable growth in recent years. With a track record of excellence and a mature ecosystem, the country has become a global leader in outsourcing and offshoring services.
This industry encompasses a wide range of services, including software development, IT support, customer service, and digital marketing. By leveraging the established IT-BPM infrastructure, technology companies can tap into a vast network of experienced service providers and benefit from cost-efficient and scalable solutions.

Growing Digital Economy and Consumer Market

The Philippines boasts a rapidly growing digital economy, driven by a tech-savvy population and increasing internet penetration. With a sizable middle class and a young population, the country offers significant opportunities for technology companies to address the burgeoning consumer market. E-commerce, mobile payments, and digital banking services are witnessing tremendous growth, indicating a shift towards a more digitally connected and cashless society. By capitalizing on this trend, technology companies can position themselves at the forefront of innovation and cater to the evolving needs of Filipino consumers.

Archax provides many services to help technology companies to achieve their goals.

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