Why the Philippines is a go-to country for Business Process Outsourcing


Business outsourcing in the Philippines, compared to other countries, has started late in this industry. However, after its birth in the country in 1992, the Philippines has become the Business Process Outsourcing (BPO) Capital of the World in 2010.

BPO in the Philippines continues to grow and has become the vital industry in elevating the country’s economy. The country has ranked 1st in the BPO destinations in 2015, replacing Mumbai.  The Philippines is said to remain as the highest in the Top 10 outsourcing destinations worldwide.

Expert outsourcing advisory, support & brokerage for your business. Source Coach - only $29 /mo

Aside from being the top destination for outsourcing, what makes the Philippines your best choice for your companies? These three reasons are the same reasons why multinational companies chose the Philippines as their Business Process Outsourcing hubs.

Low-cost country

The best reason for you to outsource in the Philippines is its low cost. The Consumer Price Index (CPI) in the Philippines is significantly lower compared to other countries in Asia. CPI includes the expenses for food, transportation, and, other utilities. Also, the country’s minimum wage is about $9 or £6.45 daily. This means that it would only take your company less than $500 or £300 for the salary per month.

Companies were able to lessen expenditures substantially into business outsourcing in the Philippines by paying less than half of the usual amount to other offshore outsourcing partners.

Highly competitive workforce

The low cost of labor does not equate to the skills of the Philippine employees.  In fact, through the initiative of the Department of Education in improving education and training, the country is continuously producing highly-skilled professionals.

One of the many reasons that the Philippines was able to outrank India in outsourcing is language competitiveness. Philippines has a 92.5% rate of English proficiency based on Flatplanet, an Australian based HR company.

Business outsourcing in the Philippines has provided globally competitive employees to entrepreneurs from the West. Highly-skilled employees help companies in running their business without maximum supervision, allowing CEO’s to focus their time on more important, higher-level tasks.

hands united together

Government support the BPO industry

The Philippine government worked hard to establish the country’s brand in the outsourcing industry. Since business outsourcing in the Philippines provides mutual benefits to the nation and foreign business, the government is pouring out its support to the industry.

Companies have 5% tax on gross income, exemption from paying imported capital materials and granting permanent resident status to investors whose initial investment is US$150,000 or more.

Multinational companies outsource their operations to the Philippines. International 3rd parties are also offering their services from the Philippines to foreign companies. Outsource Accelerator, and with the launch of its project, The Source assist International entrepreneurs in their outsourcing venture by providing relevant information on the BPO industry in the Philippines.

BPO in the Philippines provides a wide range of services for Small-Medium Enterprises (SME) to large businesses. Call centers make up the largest portion in the industry, where there are IT and software development, medical transcription, finance and accounting sectors, website and graphic design, and other digital marketing solutions to make you global.

Also, independent Philippine companies have joined the industry in providing services to international clients. They have gone beyond the ordinary business outsourcing as they delivered specific and skilled-required services to local and international customers.

iPresence Digital Marketing, Inc. has become the top of mind provider for digital marketing, as it produces world-class and unique services to clients. This company has been providing digital marketing solutions since 2001. They offer content writing, explainer videos, voice over, graphic design, website design, virtual assistance, transcription, forum marketing, and keyword research services. You will find them on Facebook, Twitter, Instagram, and LinkedIn.

Business outsourcing continues to impact the economy of the Philippines positively despite political changes. In return, international companies continue to hire globally-competitive employers with lower labor costs for business outsourcing in the Philippines.

Suggested articles from OA

August 22, 2018

The Source Superstore is now open!  To celebrate this opening, we’ve produced this seven-part publication which explores why, and how…

March 18, 2018

The Republic of the Philippines is the third largest English speaking country in the world. It has a combined history…

February 28, 2019

EMAPTA, a leading Philippines outsourcing supplier, shares their insights on this topic. Game development outsourcing is fast becoming a popular…

March 6, 2019

Outsourcing the digital marketing and content creation needs of your business is one of the best decisions you will ever…


James D. has submitted "3 free quotes"

Start Now

days ago.