Top 5 Reasons Why Professional Firms are Outsourcing in the Philippines

Employee outsourcing in the Philippines

Studies show that every scale in business has been progressing to lean on outsourcing in the Philippines. Here are the top 4 Reasons why the Philippines is the outsourcing location of choice. 

The IT and Business Process Association of the Philippines (IBPAP) projected the outsourcing industry’s global market revenue to reach US$230 billion and full-time employees to increase to 7.4 million in 2022.

According to Forbes, offshoring has become a viable option even for the largest companies worldwide. The shift to outsourcing has been attributed to factors such as faster business growth, staffing flexibility, and the availability of top talents in BPO companies.

The ideal outsourcing destination

For many firms, the Philippines is the outsourcing location of choice. Its outsourcing industry has grown phenomenally since it began in 1992. Experts predict that Philippine outsourcing industry revenues will hit US$29 billion and full-time employees will grow to 1.4 million in 2022.

Why do companies outsource in the Philippines?

1. English Fluency 

English is widely used and is one of the official languages of the Philippines. In 2021, the Philippines was 18th in English competency among 112 countries (2021 English Proficiency Index). Consequently, the Philippine workforce boasts a high level of English proficiency.


This also helps the communication between the professional firms and outsourced employees. Breaking down the gap and barrier to work efficiently and effectively. Filipinos are also known to adapt to different languages and even accents. 


2. Top-Rated Skills

Outsourcing companies also attract top-rated talents in information technology, accounting, sales and marketing, customer support, and administration. Many are university-educated, certified from foreign standards to adapt  and outsourcing companies have in-house training programs.


3. Great Attitude & Work Ethic

Filipino workers are sought after in other countries for their excellent work ethic. They have been described as responsible, hardworking, polite, respectful, and friendly.

Philippine outsourcing company staff have the same great work ethic, can work well under pressure, and are able to coordinate excellently with teammates. BPO companies further instill corporate values like integrity and service.

4. Cost-Effective Rates

Working with outsourcing companies is more cost-effective than hiring local staff. The cost of an outsourced accountant for your bookkeeping, for example, is much lower than hiring an in-house employee.

Aside from direct cost savings, outsourcing allows in-house personnel to focus on tasks and processes that are more important to the firm. Operational expenses will also tend to be lower when outsourcing than for doing everything within company facilities.

5. Robust Government Support

The Philippine government has put support policies in place, such as the Special Economic Zone Act (Republic Act No. 7916), which provides fiscal and non-fiscal benefits to outsourcing companies located in special economic zones.

The Telecommuting Act (RA 11165), the Data Privacy Act (RA 10173), the Department of Information and Communications Technology Act (RA 10844), and similar laws also help advance outsourcing in the country.


How to outsource in the Philippines

If you want to find out how you can outsource, Profitmaster can help. Our Australian-founded company allows businesses to outsource administrative, IT, and other services.

You can get a free consultation today without commitments, so you can find out how offshoring can work for you. Click here to send us a message