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Today, Philippines is one of the leading countries in the business process outsourcing market, both in the call center services and non-voice field. To add to that, it is also one of the emerging outsourcing destinations for IT services such as web design, mobile app development, software maintenance, etc. Employment in the BPO sector in Philippines hit an all-time high in 2015 with 1.15 million employees, and continued its upward trajectory with 1.3 million total jobs created in 2016, a number expected to increase 17% annually.

As a result, although many companies still look at India as the obvious choice when it comes to outsourcing business processes, but with the rapidly increasing costs and falling retention rates in India, many are realizing the benefits of outsourcing to Philippines. With revenues set to reach a staggering $48 billion by 2020, Philippines is fast announcing itself as the new heir to the outsourcing crown.

8 Key Benefits of Outsourcing to Philippines

The concept of outsourcing has been around for about 2 decades now, but Philippines has only recently emerged as a suitable outsourcing destination. A lot of it can be attributed to the favorable political landscape which has allowed the industry to thrive, as well as a dedicated and hardworking workforce. Here are some of the key benefits and reasons to outsource to the Philippines:

  1. Reduced Costs and Increased Profitability

    Philippines is a low cost country as compared to other South-Asian countries with the daily wages being a fraction of those in western countries. Newly graduated and talented individuals from reputed institutions can be hired for very low wages. The low cost also applies to business expenses such as office rental, utilities, and third-party supplies. Reducing the costs of various business processes can result in increased profitability for the company

  2. Compatible Culture

    Unlike India and China, the local culture in Philippines is pretty similar to western countries. The effects of colonization by the US for decades are still evident in the way people talk and interact with each other. English language is the primary language used by almost everyone in the country. Even the political regime is quite similar to the western countries, while being increasingly supportive of the BPO industry. As a result it is easier for western companies to do business here

  3. Highly Skilled Workforce

    Philippines has one of the highest literacy rates at about 95% with basic education made available to almost the entire population. Top universities in the country produce talented graduates every year. Filipinos are creative and expressive people and are capable of doing jobs in various fields. The outsourcing industry has made use of this highly skilled workforce to produce great results for global clients

  4. Government Support and Favorable Policies

    The Philippines government has taken an active role in developing the outsourcing environment for foreign companies. From low-cost alternatives to favorable policies for new companies, the government has fueled the boom of the outsourcing industry at every step of the way. The government has also increased investment in the infrastructure into IT processes and Business Process Management

  5. Fluency in English

    Filipino employees are very fluent in written and verbal usage of the English language. It is also observed that they are more patient as compared to their Indian counterparts and have an easier time conversing with people from western cultures. This quality can be very helpful in the case of handling some irate clients over the phone

  6. Stable Infrastructure

    Philippines took its time to learn what worked and what didn't work with the Indian outsourcing model. As a result, the BPO industry, coupled with favorable government grants, was able to build a world-class transportation, educational, and utility infrastructure. Today, modern highways link their BPO centers, with entire cities such as Davao city coming up on the bedrock created by the BPO industry. As a result, Philippines is able to offer superior infrastructure as compared to most of its competitors on the world stage today

  7. Latest Technology

    With the support of global giants such as Microsoft behind them, Philippines has been able to create innovative BPO contact centers which leverage the latest technology such as IP telephony and social media to interact with their customers. Today, with regular government and foreign investment, Philippines has become one of the few countries to offer omnichannel customer interactions through email, real-time chat, social media, and video chats

  8. Cross-sector Experience

    As it continues to grow, the BPO industry in the Philippines further diversifies while increasing in both the range of services offered and the scale of projects which can be accomplished. Today, services are offered in a wide range of sectors and industries including energy, banking, engineering, legal, creative, financial, industrial, etc., ensuring Philippines stamps its name on the global BPO industry chart

Popular Services Outsourced to Philippines

Being an economically weak country in the past, job opportunities were difficult to come by for Filipino citizens. But, with the growth of the outsourcing industry a lot of people were able to get jobs and improve the standard of living in the country. The multi-talented workforce available is capable of providing services in a variety of fields. Some of the popular services which are outsourced to Philippines include:

Future of the Philippine Outsourcing Industry

After India and China, Philippines is increasingly emerging as the next most preferred outsourcing destination for many companies. Strong work ethics, state-of-the-art infrastructure, and a large pool of talented resources are some of the strong factors helping the country grow in the outsourcing industry.

With the average yearly growth of the BPO industry has been about 20%, it is estimated that the revenue generated will grow from being $18 billion in 2014 to about $25 billion in 2016 and reach over $55 billion by 2020. The industry boom will contribute in generating millions of jobs for new and talented graduates and help them lead a better life.

Make Philippines your Next Outsourcing Destination!

With a booming outsourcing industry in the Philippines, more and more businesses are choosing this country to outsource their business processes. Flatworld Solutions has a state-of-the-art global delivery center located in the heart of the Philippines Outsourcing capital, and provides services such as Data Entry, Medical Transcription, Call centers, Animation, Software Development, etc. for clients throughout the globe.

We have been in this industry for about 20 years now and provide services at very competitive prices and within a quick turnaround time. If you are looking to outsource to Philippines, feel free to get in touch with us and we will be more than happy to serve you.

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Flatworld Solutions

116 Village Blvd, Suite 200, Princeton, NJ 08540


Aeon Towers, J.P. Laurel Avenue, Bajada, Davao 8000

KSS Building, Buhangin Road Cor Olive Street, Davao City 8000

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