Philippines: The Optimal Destination for Outsourcing

Philippines: The Optimal Destination for Outsourcing

Outsourcing means hiring another company to do work that used to be done by a company's employees. It's often done to save money and can involve various types of jobs like customer support, manufacturing, and office tasks. Companies started using outsourcing as a business strategy in 1989, and it became very popular in the 1990s.

By outsourcing different functions, companies can give attention to detail to the strategic side of their business. The objective of outsourcing is to cut production costs. Therefore, companies select those countries where labor is cheap. The Philippines is the best place for business process outsourcing.


The Philippines is a top destination for outsourcing, not just for tourism but also for various business processes. Many companies from different countries have set up satellite offices in the Philippines, covering industries like manufacturing and technology.

During the mid-1990s, business processing outsourcing (BPO) started growing rapidly in the country. Even during the ongoing health crisis, the Philippines' outsourcing sector continues to thrive, contributing significantly to the economy.

Apart from the Philippines, there are other countries also that are considered good for BPO operations such as Thailand, India, Bangladesh, and many more. If you want business operations to be outsourced in Thailand, professional thai translation services can be of great help. You must select any country for BPO while considering different factors.

Let's find out, why the Philippines is the best option for outsourcing.

Cross Cultural Fit

Do you know that the Philippines was colonized by the Japanese, Americans, and Spanish? Therefore, you can see the colors of different cultures in this country.

The amalgamation of different cultures has made the Philippines more adaptable. Therefore, no matter which country are you from, you can easily work with Filipino people.

One important thing to note about Filipino people is that they are very hospitable and break the ice with foreign people easily. This makes working with them easy. Moreover, if you take assistance from professional Filipino Translation services then it can be an additional advantage.

Nation of Young People

The Philippines is a country with a young generation. The young people in the Philippines start working after 21 years. Moreover, they are very tech-savvy people. They don't require training and development to perform thus saving the cost of the company. The other best part of the Philippines is that the literacy rate in this country is 97.5%. Each year colleges and universities produce talented and skillful people who are ready to work.

Cost Effective

Manila Bulletin reported that Philippine call centers offer affordable hourly rates, which is an essential factor for companies when choosing a BPO provider. On average, Philippine contact centers charge $8-$16 per hour for their services. Comparatively, rates in the US, Latin America, Western Europe, Eastern Europe, and Australia are much higher, making outsourcing to the Philippines the most cost-effective choice.

English Proficiency

To your surprise, 70% of Filipinos are fluent in English. People start teaching English to children before they join the school. Their English proficiency is enhanced more with formal education. In the Philippines, English is the medium of instructions, and it is the main language used in local e-commerce. According to the EF ranking Philippines ranked 22nd for English Proficiency globally. Moreover, it ranked second in Asia. Therefore, English speaking countries don't find working with the Philippines.

Ensuring the Security and Privacy of Data

For more than 30 years, the Philippines has developed a sophisticated call center industry and strong regulations to support it. Over the past two decades, the outsourcing sector in the Philippines has handled sensitive client data, including health insurance, medical records, and financial information for major companies.

The Philippines offers a compliant environment and work system, adhering to strict data privacy laws.

State of the Art Services

Filipino people are very hardworking and polite. Moreover, they are very professional and deliver their projects on time. No- matter, how hard the project and workload are. They handle it with ease. The education system in the Philippines has also made the people very competitive. They deliver the state of the art services to their clients from around the globe.

Government Support

The Philippine government provides strong support to the industry with rules and rewards to attract offshore businesses. They created the Philippine Economic Zone Authority (PEZA) for this purpose. PEZA offers benefits like income tax holidays for four or eight years. To continue supporting the BPO industry, the government has a plan called the Philippine IT-BPM Roadmap 2028, aiming to reach 2.5 million workers and generate $59 billion in revenues by 2028.

Wrapping Up

Are you ready to outsource business operations to the Philippines? Do check the benefits of outsourcing to other countries too. If the benefits of outsourcing to the Philippines out ways the other countries, then you should go for it. You can get state-of-the-art services at reasonable rates.


Image Credits: Freepik

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