8 Reasons to Outsource to the Philippines


The Philippines is one of the most popular business process outsourcing (BPOs) destinations in the world. What makes the Philippines an ideal choice to outsource your business?


Here are just some of the reasons:


Cultural Compatibility

The Philippines has a long history of colonisation. The Spaniards colonised the country in 1521 to 1898, by the British from 1762 to 1764 and the United States, from 1899 to 1946. The impacts of our colonial past are still embedded in the Filipino culture, especially in our education system and form of government which are heavily influenced by the United States.


Cultural Adaptability

Filipinos are highly adaptable. We can work with diverse group of people and provide a wide range of services. We can easily adapt to different cultures, situations, and work environments. Employees, especially in the BPO industry, follow company schedule half the world away, so some staff work at night or at wee hours.


Cost Savings

There are significant cost savings in outsourcing tasks to the Philippines. The cost of living in the Philippines is about half the cost of living in the United States and Australia. Hence, any cost savings extend to other business-related expenses such as office rental, utilities and third party services.


Highly Skilled and Available Workforce

The 2015 UNESCO Institute for Statistics (UIS) estimates Philippine literacy rate at 96.3%. According to Cushman and Wakefield, the Philippines graduates are English proficient. In addition, some public and private institutions offer special skills training for people who wish to work in the BPO industry.


The growth of the BPO industry has changed the perception of most Filipinos. In the early days, people work in BPO companies because of lack of employment options. Today, a career in the BPO industry is a highly coveted option. This attracts educated and trained professionals to bring their diverse experiences and skills to the industry.



The Philippines is one of the largest English-speaking countries in the world. It has a national English proficiency rating of 92.5% (Cushman and Wakefield, 2015). In fact, English is an official language in the Philippines. English is the preferred language for textbooks, court decisions, business correspondence, and print and broadcast media. English movies and television shows are not subtitled. This proves that Filipinos values the English language for functional and practical reasons.


Good Track Record

The BPO industry in the Philippines grew exponentially in the past decades. The 2019 A.T. Kearney Global Services Location Index (GSLI) ranked the Philippines tenth in terms of global outsourcing activity. Consequently, the BPO operations to minor cities all over the country improved infrastructure, environment and tax collections in the country.


Government Support

The Philippine government demonstrates support to the BPO industry. Deregulation of telecoms, improvement of power supply infrastructure, and establishment of Philippine Economic Zone Authority (PEZA) all helped. BOI accreditation grants fiscal and non-fiscal incentives such as income tax holiday to BPO players as well. Also, the Technical Education and Skills Development Authority (TESDA) extends aid with government-sponsored training programs.


High Overall Attractiveness

The Philippines continue to do well in terms of overall attractiveness as a BPO destination. In 2015, Cushman & Wakefield, the world’s largest privately held commercial real estate services firm in New York, came up with a comprehensive global report “Where in the World? Business Process Outsourcing (BPO) & Shared Service Location Index”. Based on their analysis of the risks, costs and conditions, the Philippines comes as a close second to Vietnam.


A.T. Kearney, publisher of GSLI since 2004, reports that Philippines is in tenth place of 50 BPO destinations. The metrics were financial attractiveness, business environment, and people skills and availability.


Ready to start your outsourcing journey to the Philippines? Feel free to contact us to schedule a no-obligation meeting to discuss your business requirements.