Outsourcing in the Philippines

The Philippines is rapidly becoming the premiere destination of choice for businesses seeking high quality outsourcing services. The decision of so many businesses to have their outsourcing in the Philippines is no coincidence, as the Philippines provides a sizeable advantage over other locations.

There are many reasons why the Philippines is unique and inimitable in outsourcing capability, and the first is its young, enormous workforce.  90% of the over 100 million people in the Philippines are below the age of 55. Even more remarkable, a study by the United Nations Development Programme pegs the Filipino workforce literacy rate to be at 93.4%. This ensures that businesses that decide to do outsourcing in the Philippines are supported by a large, youthful, and highly literate workforce.

The Philippines is one of the largest English speaking countries in the world. In fact, aside from the country’s native dialects, like Tagalog, English is one of the languages colloquially used. Filipinos have a neutral English accent that makes outsourcing in the Philippines a natural choice for most businesses. Among most westernized countries in Asia, the Philippines has also been globally ranked number one in terms of English and Western cultural affinity by the Talen Index of 02P and the Everest Group.

Despite the high quality of manpower, the cost of living in the Philippines is significantly lower. The Philippine government also has a very supportive policy environment for outsourcing. In order to encourage businesses to outsource in the Philippines, multiple government incentives await those that decide to do so. Both the low cost of living and the support of the Philippine government allow outsourcing providers to reduce their costs and pass on the savings to their clients.

Not only does the Philippines provide better value in outsourcing, it also offers a significantly wider range of services in almost every industry and sector of business, including healthcare, financial, legal, creative, banking, energy, investment, insurance, logistics, engineering, software services, communications, and many others. Many businesses decide to do outsourcing in the Philippines because the service expertise and quality of the activity they desire to outsource are simply that much harder to find elsewhere.

The infrastructure supporting outsourcing in the Philippines is also highly developed and designed to support a massive client base. The Philippine government and private initiatives tirelessly work together to ensure that outsourcing in the Philippines continues to be very competitive technologically, while the extensive experience of outsourcing providers in the Philippines has resulted in some of the most innovative yet robust outsourcing infrastructures anywhere in the world.

As a result of these distinct advantages, several Philippine cities have been cited as the best locations for outsourcing in the 2015 Tholons Top 100 International Outsourcing Destinations Report. These are Metro Manila, Metro Clark, CebuCity, BacolodCity, Iloilo, BaguioCity, DavaoCity and Sta., Rosa, Laguna.

With these qualifications, it’s easy to see why so many businesses have trusted Philippine outsourcing providers with their outsourcing needs.

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