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Outsourcing to the Philippines: fastest growing in the world

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YES YOU read it right. The level of outsourcing to the Philippines is growing faster than in any other country, according to the Global Outsourcing Statistics Report released last December 15 by oDesk, the leading marketplace for online workteams for employers outsourcing technology jobs to certified, freelance developers and programmers. The report also states that the Philippines remains a popular destination for outsourcing work. Other popular countries include the U.S., India, Pakistan, Canada, Ukraine, and Russia. The bulk of the outsourcing jobs received by the Philippines is in the Knowledge Processing Outsourcing (KPO) sector. This includes data entry and virtual assistants. India’s largest work category, on the other hand, is in the software and web development field. The report also divulged that the Philippines’ average feedback rating surpassed the oDesk average for the first time. The U.S. has the highest average feedback rating and the greatest number of providers. Here are statistics from the report: CANADA Total Number of Providers: 3,581 Average Hourly Rate Charge: $19.60 Average Feedback Score: 4.32 (out of 5.00) INDIA Total Number of Providers: 27,454 Average Hourly Rate Charge: $12.52 Average Feedback Score: 4.01 PAKISTAN Total Number of Providers: 5,960 Average Hourly Rate Charge:  $11.13 Average Feedback Score: 4.36 PHILIPPINES Total Number of Providers: 17,213 Average Hourly Rate Charge: $6.33 Average Feedback Score: 4.30 RUSSIA Total Number of Providers: 2,721 Average Hourly Rate Charge: $16.86 Average Feedback Score: 4.31 UKRAINE Total Number of Providers: 2,929 Average Hourly Rate Charge: $15.96 Average Feedback Score: 4.36 USA Total Number of Providers: 52,637 Average Hourly Rate Charge: $18.32 Average Feedback Score: 4.40 Noticed something? The Philippines has the lowest average hourly rate charge. Good work at cheaper rates—no wonder we’re so popular. :) The report can be accessed here.

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11 Comments

Philippines has the cheapest rate because most of the Filipino oDesk providers are offering data entry services, which does not cost that much, unlike other countries which mostly offer software development/ programming services.

The multiplier effect of this industry is tremendous. It will definitely increase the level of awareness of other countires in our tourism, retirement, medical and leisure industry.

Thumbs up for inquirer for slowly focusing more on good news than political and exaggerated bad news.

And thank you Karen for the article and with your gung ho spirit, I think our country is now back to greatness. It may take some time but with so many young intelligent thinking Filipinos out there now, in five years time we may become the place to be for investors and lifestyle tourists. Way to go....

CHEEERZZZZZZ

It's nice to hear that despite the worldwide economic downturn, our country at least continues to enjoy the benefit of continued employment from countries who outsource to us.

Filipinos provide good quality work specially when it comes to customer service and relations that's why Im not surprise of the progress or positive reviews the Philippines is getting on this industry.

its nice to know that filipino now a days got a niche on this market of outsourcing, on the book i bought in 'pinas "Black Book of Outsourcing" filipino were labelled in that book as BUBO.
This proves that the author of the book was wrong.
I still believe in Pinoy's competency, this news is a morale booster. GO...GO... GO ,let's go forward, may this turnaround infect the other industry.....

This is good news for this battered, and long suffering country that seems to be bouncing all over the place and can't seem to get its act together. It is nice to know that at least in this critical (cutting edge) area, Filipinos lead. And wny not, our people are properly motivated, they are smart and have the required empathy to prevail and excel in this tough field. Having lived and worked abroad for many years, I personally know this is one area where our being Filipinos will be hard to beat.

One can only hope that the move to make Pilipino language the medium of instruction in the primary grades (or is it all the way to finish?) does not prosper. I have seen the disaster it made out of those who went to school after I left. And when I returned to teach briefly, I could not believe the horrors of not only my students being unable to express themselves (in English, which given that langauage's importance in globalization) was bad enough; what made it ten times worse is how their thinking abilities were stunted. Hard to believe, but those who are in to semantics and semiotics would know how language can shape the way a person thinks. Indeed Wittgenstein believes there is little else to philosphy but the proper use of words to convey what a person has. This is not necessarily to imply that Pilipino language is inferior to other languages when it comes to clear thinking. Maybe yes or no, perhaps it depends on exactly what areas of life one is referring to. But in terms of scientific and commercial areas, it is clear that our way of thinking just won't cut it in the global arena. That Filipinos can still excel in outsourcing is just indicative that there are other factors at play (eg, empathy) but we should not rely only on that factor or another. Clear thinking would be made easier if we were instructed in the lingua franca of international busienss.

Of course some may believe that this is a way to keep Filipinos enslaved by other cultures. It does not follow because there are many intervening variables. And of course there is that most important factor of all, character and will. On the other hand, ignoring the issue woud immediately put Filipinos at a disadvantage compared to its potential competitors (theThais, Indonesians, and soon who knows, even New Guinea?). Then our mental stupidies have just caused us to lose this one edge which gives many Filipinos income, employment and puts food on their tables. There is a cost to excessive nationalism and jingoism. One is poverty.

There is also one outsourcing area that we wanted to bring to the Philippines. And it's Software as a Service (SaaS) where we provide the business software for businesses here and abroad and we do the support locally. Hopefully, this will also bring additional revenues.

I just have some doubts regarding the rate here in the Philippines. USD6.33 is just way too low. I though we were charging at around 12USD - 18USD an hour. If its true, then there is a need to at least bring it up a bit. Sometimes charging a very low price will adversely affect credibility.

I think the low hourly rate of the Philippines is one of the significant factors why we get a slot in the outsourcing business. India has a very competitive language so it can set a good cost for its service. Language that is closer and credible for the client organization. We are a bit behind in the proper command though we have a good literacy rate. And talking about our native language, it has a derogatory meaning to an outsider's point of view. Good thing we can manage the corporate language.

Thanks for such wonderful and useful information. Its really helpful and full of insight. I like this specially because i have been trying my luck at being at a private corporate job.
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Thanks for such wonderful and useful information. Its really helpful and full of insight. I like this specially because i have been trying my luck at being at a private corporate job. marketing masters

Thanks for such wonderful and useful information. Its really helpful and full of insight. I like this specially because i have been trying my luck at being at a private corporate job. online social worker degree

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This page contains a single entry by Karen Galarpe published on December 19, 2008 10:16 AM.

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