Why Outsourcing to the Philippines Is a Great Move

Why Outsourcing to the Philippines Is a Great Move

Philippine outsourcing at a glance

The Philippines’ outsourcing industry began with the opening of a contact center in 1992, which started off what was considered the “First Wave” of outsourcing in the country. In the early days, the call centers provided mostly basic services such as service management and email response.
Over the years, outsourcing in the Philippines slowly grew into a highly lucrative billion-dollar industry, thanks to a robust economy and strong support from the government. Soon, high-profile outsourcing firms made its way to the country, kicking off the Second Wave of the industry. 1995 was considered another notable year for the industry, as the passage of the Special Economic Zone Act allowed the establishment of the Philippine Economic Zone Authority (PEZA), making the country a very desirable option for investors.
Today, the Philippines is home to hundreds of BPO companies that provide a wide range of services, including call center services, data transcription, digital content creation, engineering development, and many more. The country is now in its Third Wave, with many companies seeking more ways to provide higher-value services in today’s age of automation. For this reason, the Philippines remains one of the top destinations for local and international companies looking to outsource.
If you’re thinking about setting up a business in the Philippines for outsourcing, here are some of the many benefits you’ll be able to get:

English proficiency

One of the main reasons why the Philippines is one of the top outsourcing destinations in the world is the Filipinos’ English fluency. In 2019, the Philippines registered a 60.14 EF EPI score, placing it in the 20th spot out of a hundred countries in the EF English Proficiency Index. The country is currently ranked #2 in Asia, behind Singapore.

Adaptability to different cultures

Filipinos possess an ability to adapt easily to different cultures due to having strong influences from the West and neighboring countries in Southeast Asia.
Having employees who are able to adjust to different cultures easily is one of the biggest advantages for outsourcing companies in the Philippines. Exposure to a variety of cultures allows for seamless communication between contact center workers and clients, which leads to a high quality customer service.

Improve your services

Building a team in the Philippines is an excellent way to improve the quality of service you provide and receive. Having an offshore customer service team allows you to provide 24/7 service in a variety of ways that were not possible before.


Through outsourcing, foreign companies are able to assemble a virtual team with diversified talents, and are capable of handling a range of tasks, including help desk support, marketing and sales, multimedia content, data entry, research, and more.
The Philippines is home to a dynamic workforce filled with candidates who possess diversified skill sets – the sky’s the limit!

Cost-effective investment

Foreign companies who choose to outsource services to Philippine BPO companies get more value for their money, helping them achieve the main objective of outsourcing, which is to ultimately reduce costs.
Beyond the sizable difference in labor costs however, is that the Philippines is known for producing work of exceptional quality, thanks to the country’s 95% literacy rate and its array of top-ranking colleges and universities that produce reliable and skilled graduates every year.

Seamless and stress-free management

Choosing the right outsourcing provider means you’ll have a reliable, professional HR and management team at your side. Although you are still responsible for training and task delegation, you won’t need to deal with common issues such as ensuring employees show up on time, approving sick/vacation leaves, tax returns, and so on.
Your HR team will handle all of these and more for you, allowing you to focus on the core of your business.

The Philippines’ Data Privacy Act

The Philippines’ Data Privacy Act of 2012 (Republic Act 10173) is a key element that enhances the country’s outsourcing industry, as it gives foreign companies an assurance that the country abides by all International Data Privacy Standards. This is crucial for services such as healthcare outsourcing and human resources outsourcing, as personal information and other sensitive data is involved.
The act mandates all outsourcing companies to guarantee the protection of any personal data collected through outsourcing operations, which gives foreign companies confidence in investing in the country.
Are you planning to outsource your services to the Philippines? Get in touch with our team today to talk about your plans and goals. Call us at +1.806.553.6552 or send us a message here.