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7 reasons why your competitors are outsourcing in the Philippines, you’ll definitely love number 3!

7 reasons why your competitors are outsourcing in the Philippines, you’ll definitely love number 3!

Why Outsource in the Philippines?

Minimizing costs and maximizing efficiency have always been the goal for a business to succeed. With outsourcing in the Philippines, you can achieve both easily! Your competitors are most likely aware of this fact already and are currently experiencing the various benefits that it brings.

Philippines is “The BPO Capital of the world” since 2010 and statistically one of the fastest growing economies in Asia with a growth rate of 6.34% last 2018. Outsourcing is one of the driving force in Philippine economy that’s why people here are trained and specialized in remote work.

Despite the pandemic taking a financial toll on everyone, the industry not only managed to recover, but also reach the highest level of demand since 2020. It still continues to thrive amidst the hardships and shine as one of the most viable options for employees and employers alike.

Still, regardless of reputation, there are still many other factors that you need to consider. This article will help you gain a better understanding of outsourcing in the Philippines.

Table of Contents

Outsourcing in the Philippines | an outsourced VA in his laptop

1. High English Proficiency and little to no communication barrier

Along with Tagalog, the English language is considered one of the Philippines’ official languages. As such, Filipinos are known to be well-versed in English. The high proficiency in English is backed up by these rankings and statistics:

  • The Philippines ranked 27th out of 100 countries in the 2020 English Proficiency Index. The same index ranked the country 2nd among 24 countries, next to Singapore.
  • The Philippines’ literacy rate stands at 95.6%. 70% of this number speaks and reads English fluently. 

The Philippines’ high English proficiency rate stays strong thanks to the ongoing teaching and implementation of the English speaking policy in schools and universities nationwide.

Filipinos are taught how to read and converse in English as soon as they start schooling. In fact, when you visit the country, you can see and hear the English language everywhere – on street signs, in daily conversations, textbooks, and more.

Filipinos deem the language as an important skill to enter the workforce easily and with the growing outsourcing industry, more Filipinos are prioritizing the polishing of their English skills. Because of this, Filipinos have developed their English accents matching those of Westerners, particularly Americans.

This has helped them adapt to the English fluency needs of international BPO companies, especially for voice support tasks.

2. Business Flexibility

Outsourcing has evolved from a multimillion-company exclusive to an open option for businesses from startups to established ones. The good news is, outsourcing in the Philippines has also adapted to this evolution in the industry.

Startups and medium-scale businesses are now outsourcing their needs to smaller virtual teams and outsourcing companies in the country. The variety of outsourced tasks to the country has expanded from the all-time favorite voice support tasks.

Today, businesses also outsource their marketing, IT or web development, and administrative tasks, to name a few.

No matter the scale of your outsourcing needs, your budget, and your business, you’ll always find a rockstar talent in the country to handle your outsourcing needs. 

3. Highly Cost Efficient

When you outsource to the Philippines, you aren’t required to make an immediate huge investment to hire someone to do tasks for you. With the flexibility of outsourcing options in the country, even startups who are looking to build a solid footing in their industry can outsource here. 

The Philippines, to most countries, is a good opportunity to experience a low-cost way of living while experiencing the level of income that you are used to through remote methods.

This is called Geoarbitrage (Geographic Arbitrage) which gives you more financial freedom and independence without the risk of negatively affecting your quality of life. Arguably, one of the best things about it is the savings you will be make for your future and the freedom it invites you to take advantage of. 

Though Geoarbitrage is not for anyone, there are still many people who see this as an opportunity to improve their life and their future. In the context of outsourcing, however, the change in your lifestyle won’t be as drastic. 

In fact, what most businesses love about outsourcing to the Philippines is its cost-efficient pricing.

Contact centers and other multi-billion companies are choosing to outsource to the country due to their cost-efficient benefits.

These companies enjoy quality output and a continuous stream of income without making more huge investments in their manpower.  This allows you to enjoy freedom from your repetitive tasks at a price that doesn’t break the bank. 

But outsourcing to the country isn’t limited to just big companies these days.

Startups and medium-sized businesses can also enjoy the fruits of outsourcing at a low cost , thanks to the country’s budget-friendly pricing.  Businesses had achieved doubled ROI from their low-cost investment in outsourcing in the Philippines. This is especially handy for high-cost outsourcing needs, like digital marketing.

You won’t need to worry about making extra investments in office spaces, equipment, or electricity. Your chosen outsourcing company handles this for you, as well as management costs and other liabilities.

All you need to do is lay back and wait for the results to flood in.

But don’t let the low price fool you.

You can still enjoy outputs from these Filipino employees that exude premium quality.

Most businesses that have outsourced to the country found opportunities to expand and grow their products and services. 

4. The Continuous Growth of the Outsourcing Industry in the Philippines

The Philippines is no beginner in the outsourcing industry.

The first BPO company in the country, Accenture, was established in 1992. Ever since more BPO companies have risen in the county, such as Convergys, JPMorgan, and Skyes. Not only that, but more outsourcing marketing companies have also established grounds in the country. Through the years, the country has been keeping up with the growing marketing needs of businesses around the world.

In 2021, the Philippines ranked 2nd out of the world’s top outsourcing favourites. Though the Philippines fell from Tholon’s list of Top Digital Nations, it still holds a high position of 18th out of the Top 50 countries. Manila has even placed fourth in the Top 20 Super Cities.

The BPO industry in the Philippines itself is a multi-billion dollar industry and as of 2019, it has employed over 1.2 million Filipinos with United States based companies accounting for 60% of all services provided. Australia, New Zealand, and the United Kingdom followed after. 

All these have contributed to the tremendous growth of the outsourcing industry.

This is why the Philippines now outranks India as the world’s top outsourcing destination. 

5. Cultural Compatibility

The Philippines has been under American colonization for 48 years. During this period, the adoration for Western culture and media has slowly integrated into the Filipinos’ way of life.

With the 60% internet penetration in the country, more Filipinos are unconsciously being exposed to different cultures portrayed in books, movies, music, and other media products from the US and other countries. The effect of this exposure is evident with the local’s familiarity with the English language and their adaptation of their behavior, attitude, and trends today.

Their exposure to Western media and culture has helped them adapt to international cultures effortlessly.

This made it easy for businesses to get along with their Filipino employees, and for Filipinos to cater well to an international range of customers their employers serve.

With this, you won’t encounter such problems with migrating your business processes. Your offshore outsourced staff can get a grasp of how things work in your business as fast as possible.

For businesses outsourcing their customer service needs, especially those that cater to a worldwide audience, this culture compatibility is extremely helpful. Your outsourced employees can attend to the needs and concerns of your business without the risk of offending someone due to a lack of cultural knowledge. 

6. Government Support

The outsourcing industry has become a huge contributor to the country’s growing economy over the years. The Philippine government has continuously recognized foreign businesses and the outsourcing industry as huge contributors to the country’s growing economy. This is why the government has made it simpler and easier for foreign businesses to invest in the country. To support this, they have taken extra steps to nurture the BPO sector in the Philippines.

Outsourcing in the Philippines | Emerge Digital Agency | Hired VA

For one, there exists the Foreign Investment Act of 1991 in the country. The law has liberalized foreign businesses and investors to invest 100% equity in companies of any type of business activities, as long as they abide by the restrictions indicated in the Foreign Investments Negative List.

Aside from the law, the government has also implemented tax and non-tax incentives for foreign businesses in the country. They’re currently working on laws and regulations to make the country’s outsourcing industry systematized for all parties. 

The government has also partnered with several universities nationwide to develop BPO-specific curriculums. This is to produce more competent Filipinos to deliver their talents to the BPO workforce.

To further aid the BPO industry, the government even made efforts in supporting telecommunication infrastructures. The country’s fixed broadband internet speed has improved by a whopping 741.34% since 2016 and has proudly climbed to the rank of 62nd out of 181 countries – a wide improvement from the ranking of 94th out of 133 countries in 2017. 

More impressively as well, out of 50 countries in Asia, the Philippines ranked 17th for its fixed broadband internet speed and 23rd for its mobile internet speed.

They have also established the Technical Education and Skills Development Authority (TESDA). The institute offers call center training to further polish the skills of Filipino adults who want to become a part of the BPO industry.

The Department of Information and Communications Technology is also offering free training to Filipinos who wish to become digital marketers and virtual assistants to businesses looking for help with these areas. 

7. Versatile and highly-skilled talents 

Most fresh graduates seek out a job in the BPO sector. In turn, the industry is enjoying fresh talents with dedication while training them to become adept with the needs of BPO companies.

To produce more capable Filipino employees, the government has also partnered with universities nationwide to implement curriculums teaching students necessary work skills, particularly for the BPO industry. 

Filipinos are also taught to read at a young age throughout their school days. The country believes teaching its citizens the universal language and cultivating their love for reading are important to develop a competent workforce in the country. 

To produce more capable Filipino employees, the government has also partnered with universities nationwide to implement curriculums teaching students necessary work skills, particularly for the BPO industry.  Not even the difference in time zone is enough to discourage Filipino talents.

They are willing to work with you in your time. 

They’ve also established TESDA, a training institute for Filipino adults who wish to learn or polish their workforce skills. The institute offers free call center training for Filipinos who wish to join the BPO industry. 


The outsourcing industry in the Philippines continues to thrive among its people. With proficient skills and proper government support, no wonder, Philippines is the number one country to go to when it comes to outsourcing.

Still not convinced?

Well, other than an impressive background and strong logistical reinforcement, there are many options for you to choose from when availing services.

This gives you the opportunity to have different employees with various skills and experiences to utilize for the success of your business.

What are you waiting for? Try outsourcing from the Philippines now! Contact us at https://emergeoffshore.com/contact-us/.