Among top outsourcing destinations in the world, the Philippines stands out as a global hub. Its business process outsourcing (BPO) industry continues to grow exponentially, proving to be among the biggest generators of jobs and a significant contributor to the local economy. With a dynamic workforce, excellent infrastructure, and a welcoming business environment, the Philippines offers numerous advantages for companies seeking to outsource their operations.
The Philippines’ Current Outsourcing Sector
The Philippines has positioned itself as the world’s call center capital, with estimates that it holds 10%-15% of the global BPO market. According to the IT and Business Process Association of the Philippines (IBPAP), the Philippine BPO industry in 2022 had a talent pool of around 1.4 million full-time employees, generating $29.1 billion worth of revenue. This growth trajectory is expected to remain upward, given measures in place to support it, enabling it to grow by 8%-10% every year.
5 Reasons Global Companies Outsource to the Philippines
1. English-Proficient Workforce
With English among the country’s official languages, the Filipino workforce is English-proficient, making them ideal for businesses that require seamless communication with their outsourced teams. In fact, the Philippines is ranked 22nd out of 111 countries in the English Proficiency Index released by Education First in 2022. Whether it’s customer support or content creation and moderation, Filipinos are known for their strong communication skills and adaptability.
2. Cost-Effective Operations
The cost of living in the Philippines is lower than in Western countries, rendering the former an attractive option for startups and established businesses seeking to achieve substantial savings without compromising on quality.
3. Robust IT Infrastructure
The Philippines boasts a robust information technology (IT) infrastructure, making it an ideal location for tech-related outsourcing services. High-speed internet connectivity, modern office facilities, and reliable power supply are readily available in key outsourcing hubs like Manila and Cebu. This infrastructure ensures that your outsourced teams have the necessary tools and resources to deliver exceptional results.
4. Cultural Compatibility
Filipinos share a strong cultural affinity with Western countries, particularly the United States, due to its rich history of colonization. U.S. influences are prevalent in Filipinos’ daily lives, from the media they consume to the clothes they wear. This cultural compatibility contributes to smooth collaboration, effective teamwork, and an understanding of client expectations. It helps bridge the gap between onshore and offshore teams, fostering a harmonious working relationship.
5. Strong Government Support
The Philippines has implemented business-friendly policies to attract foreign investors and outsourcing companies. In 1995, for instance, the Philippine Congress passed the Special Economic Zone Act, which has to date lowered area requirements for development and offered tax incentives that help Opromote outsourcing activities. Additionally, the national government in 2022 expressed its continued commitment to supporting the industry through the IT-BPM Roadmap 2028, which envisioned the workforce to reach 2.5 million employees by 2028.
Outsource to the Philippines with OP360
Outsourcing to the Philippines offers a range of advantages for companies looking to streamline their operations and gain a competitive edge. With a skilled workforce, cost-effective solutions, excellent infrastructure, cultural compatibility, and a welcoming business environment, the Philippines is indeed a global outsourcing hub worth considering.
Make the strategic choice to outsource to the Philippines. Contact us to experience firsthand the advantages it brings to businesses.
