Singapore’s cost of living is known to be one of the highest in the world. Naturally, the cost of running a business here is also very high. And unlike other countries, we don’t have a set minimum wage mainly due to the fact that the government owns 54% of Singapore’s businesses.
While it is relatively easy to set up a business here due to our secure economy, government and applicable legal system, our restrictive workforce is one of the main limitations that needs to be considered.
The government is encouraging the workforce towards higher value careers such as finance, biochemistry and industrial engineering, creating a huge gap in the hotel, food and beverage, tourism and retail industry because fewer locals are willing to take these jobs. “low level”. .
And the only way to fill the void is by hiring immigrants who are willing to accept such positions. Herein lies the problem as the government is now imposing stricter rules when it comes to hiring foreign workers by raising the cost of labor for small businesses by at least 15% to protect locals, who do not want to take the one mentioned above. jobs first.
In addition to the high cost of labor, the cost of land here in Singapore is also very high due to the very limited availability of land and the strategic location of the port. Therefore, buying or even renting office space will skyrocket your overhead.
The only better option for Singapore companies is to embrace workforce globalization and outsource their business to countries like the Philippines.
The Philippines is home to more than 800 call centers and BPO service providers that have been in the country for a decade or so. Some of the world’s largest multinational companies such as Accenture, Convergys and JP Morgan Chase have successfully established their BPO presence in the country. The country is one of the pioneers in the industry giving assurance that they have the appropriate know-how in the industry.
Metro Manila, the country’s central business district, ranks second in the world after Bangalore, India, as one of the top BPO destinations in the world according to Tholon (strategic offshoring advisory firm).
What distinguishes the Philippines from other countries that offer business process outsourcing is its close cultural affinity with the West (US and UK), which is an important factor to consider when setting up business abroad. There is also a great availability of highly trained and skilled professionals who have experience working in a BPO setting.
And with the total outlay of around $1,700 per employee, including salary, office space rental, and furnishings, it’s quite a bargain considering the quality of professionals available in the Philippines.
The BPOs are now scattered throughout the archipelago, not just their capital city. The cost is even cheaper in provinces like Cebu, Davao and Clark.
The Philippines is among the top 10 economies that achieved the greatest improvement in business regulation in the past year. His government implemented regulatory reforms in three areas: simplified occupancy authorizations that make building permits easier, new regulations that guarantee the right of borrowers to access their data at the country’s largest credit bureau, and the introduction of a Fully operational online filing and payment facilitating tax compliance. for companies.
BPO today is not only focused on call center solutions. Other processes such as finance, marketing, recruitment, IT and sales, among others, can be carried out abroad.
Outsourcing activities lead to a decrease in administrative responsibility. The obligation to maintain a qualified pool of employees is transferred directly to service providers in countries like the Philippines, giving business owners the opportunity to focus on their core business.