It all started after I visited Manila for an Entrepreneurs Organization board conference four and a half years ago. I spent a day in there and saw a range of business operations. This then got my mind racing (if you know what I mean).
From my accounting and financial planning business —Wealthfarm— I thought of how I could flip it to become more efficient.
With over 20 years of experience working in the financial services industry, I’ve observed that most Australian accounting firms are buried with process-driven tasks, causing them to lose focus on their core business.
In order to allow my team to add value to our clients, we thought of helping these accounting firms to get back to client facing work by having a team who can take care of all compliance and administration work.
So, I started an outsourcing business —The Outsourced Accountant.
A trial and error stage
I had tried outsourcing to India, Vietnam, and in Australia but they all failed. The Philippines wins hands down.
Here are some compelling reasons why I chose the Philippines:
- There’s a huge saving in cost
We couldn’t deny that cost is one of the factors that lure foreign countries to outsource in the Philippines. In fact, outsourcing allows firms to hire 3 to 5 staff offshore for just a cost of 1 onshore.Imagine the impact it can bring to your business? You surely get MORE than what you pay for.
- They have globally competitive workforce
The country has a staggering literacy rate of 97.5% and a business English index of 7.11. This makes Filipinos one of the most sought after workforce by foreign companies. As an outsourcing accounting provider, I see a huge advantage to locating the business in the Philippines as it has a better number of accounting graduates coming out each year. (Probably because it’s one of the country’s main degrees.)
- The time zone is similar
The time for our Filipino and Australian team suits perfectly as it’s only two hours behind for all Eastern states of Australia and the same time zone for Perth. This is very convenient for our Filipino team because their usual working hours is not compromised. One culture we highly value is work-life balance. We want our team to spend more time with their families, a typical Australian and Filipino trait.
- It’s one of the most preferred outsourcing destination
Manila (2nd) and Clark (95th) are two of eight Philippine cities that made it to the list of 2015 Top 100 Outsourcing Destination. The other cities include;
- Cebu (8th)
- Davao City (69th)
- Rosa, Laguna (82nd)
- Bacolod (86th)
- Iloilo (91st)
- Baguio (95th)
So, basically, why Clark and Manila?
To date, I have two offices in the Philippines, one inside Philexcel Business Park in Clark Freeport Zone, and one, our Manila office, situated in Ortigas, Pasig.
Of all urban areas outside Manila, I prefer Clark because:
- It’s a lot quieter and has a less congested environment.
- It’s easier to get to work as people will not be sitting in traffic for hours.
- It’s accessible to expressways, has its own international airport, and enjoys a variety of amenities and government incentives.
- There’s a talent pool of close to 8 million people with very little competition.
The unwavering demand for outsourcing is the entry of our Manila office into the scene in 2016. The business we have now was an unexpected outcome.
From 7 team members back in 2013, we have since grown to more than 300 team members in just a span of two years.
And, I believe the industry is going to go through continued growth.
If you’d like to hear more about offshoring and how it can help you grow your business, kindly contact me.