3 Keys to an auspicious start to outsourcing in the Philippines
What are the keys to a smooth start when outsourcing in the Philippines?
A smooth start to outsourcing in the Philippines rests on three things: clear communication, strong process documentation, and the right performance measures, all shaped around local culture.
- Confirm that your message is received the way you meant it.
- Document processes in a way Filipino staff can follow with ease.
- Set performance measures that fit the size and shape of your team.
David Prichard of the thriving Australian online retailer The Nile shares the keys to a seamless start when outsourcing in the Philippines.
Derek Gallimore had a revealing talk with the head of operations of The Nile, David Prichard. Many Australians know the company as a well-known online retailer. In sharing their journey into outsourcing to the Philippines, David also laid out three keys to a strong beginning.
Growing companies see the real value of BPO providers. It is more than cost-cutting. Remote third-party services also help firms keep expanding. Some companies such as Chevron and UnitedHealth Group run their own BPO operations in the country. Most others, though, use third-party services.
Either way, one thing is clear. The Philippines has the infrastructure and a deep pool of skilled people. In fact, the BPO sector is a major reason the country ranks among the fastest growing economies in Asia. That growth has held. For example, industry revenue passed $40 billion in 2025, and IBPAP’s baseline target for 2026 is $42 billion.
Before you outsource, though, know one thing. Certain issues can crop up early and cause delays. Rather than brush them off as growing pains, it is better to tackle them. That way, you get a smoother start and steadier operations.
David Prichard and The Nile: lessons from the Philippines
Like many firms that outsource part of their business, The Nile had big hopes. It was a bold move. Still, they felt it was the right call. David Prichard, who has been with the company for years, was asked to help set up the operation.
“The intention was that I would stay for approximately, if I recall correctly, maybe two weeks,” David said. Little did he know the visit would change his life. In the end, he moved to the country for good.
Perhaps that is why David gained such a deep feel for the unique way business works in the Philippines. In his talk with Derek, he named three areas that were critical to their success.
- Communication
- Process documentation
- Key performance index
A successful start to outsourcing in the Philippines rests on many factors. Often, these come up in talks between BPO firms and their clients. In any field, dozens or even hundreds of providers can do strong work.
However, every business has its own quirks. Small as they seem, they can still shape how smoothly things run. On paper, these three areas look simple. As David soon found out, there is one more element at play.
Culture
Of course, cultural differences exist. Colleagues disagree in any company. So picture that same gap when you outsource to another country. Culture can quickly become a hurdle.
Even so, most foreign clients find that productivity stays above average despite these barriers. The key is a real grasp of the differences. That is what bridges the gap between clients and their BPO partner. A seamless start only happens once those gaps are closed.
Many factors drive the growth of outsourcing in the Philippines. One is that Filipinos speak English clearly and in a way others easily understand. What people cite less often is this. Filipinos also adapt fast to the customs of foreign clients. Still, some cultural habits run deep. Learning the local Filipino work culture pays off early.
1. Communication
One of David’s first lessons was a gap in communication. Before he arrived, the team was already working with a BPO company. A couple of weeks ahead of his trip, he asked the provider to have the Filipino staff get to know The Nile. Only when he landed did he learn there had been a mix-up.
It was an eye-opening moment. It showed the cultural gap between Australians and Filipinos. In short, he had expected things to run the Australian way.
“It has often been said that Filipino would always answer yes to a ‘yes or no’ question,” David shared. “I do not mean that in any way that might seem degrading to Filipinos but it is a sort of a cultural aspect.”
Filipinos are polite people. They also do not want to seem rude or to offend a client. Knowing this, David changed his approach. As a result, he made sure his message and how staff received it matched. Clear, two-way communication in the workplace became his first fix.
2. Process documentation
Before starting an outsourcing operation in the Philippines, The Nile had its own way of doing things. Yet after ten years, they still had no full documentation. Once they grew and hired more people, the need became clear.
So they hired an expert to write it all down. Unfortunately, it did not go well. “It is literally so detailed without actually focusing on what matters,” David explained. “What are the key decisions that need to be made? What is the purpose of this task?”
Third-party experts can help, but good documentation is not simple. They can map a process. Still, they cannot know the business the way insiders do. Because of this, The Nile hired a process specialist to work in-house.
Once they began outsourcing in the Philippines, the logical step was to reuse that same documentation. After all, the point is to make work scalable and consistent. So the Filipino staff needed to understand and follow it. There was one catch. An Australian had mapped it in an Australian context.
“You need to translate that into something which is going to be understandable by Filipinos,” David said. He meant nothing derogatory. Instead, he simply reshaped the documentation to fit Filipino traits and values. Good management of an outsourced team often starts right here.
3. Key performance index
Large firms and smaller businesses differ in one key way. Big companies have whole teams for a single task. Smaller ones have a few people doing many jobs.
It is easy to measure a team that does one thing. So a key performance index (KPI) is simple to set there. Measuring a small team that juggles several jobs is harder. However, it is far from impossible. For help here, compare how to set the right KPIs for your goals.
Final thoughts
Outsourcing is not new to business. Even before China opened its borders, some firms ran remote production sites. New technology then opened up the service sector and fueled the rise of BPO. As a result, even small and midsize firms can now share in the gains and keep growing.
Developing countries may lag in some areas. Yet that very gap has created fresh opportunity. The Philippines has positioned itself as a global BPO leader. Its industry revenue passed $40 billion in 2025, and IBPAP’s baseline target for 2026 is $42 billion.
The industry is mature, but some growing pains remain. At times, as with The Nile, understanding the cultural gap is what makes an operation run smoothly.
“It is more fun in the Philippines,” the Department of Tourism once promoted. Often, visitors leave with a heavy heart after enjoying the sights and sounds. For foreign businesses, the fun lies in tapping the unique skills Filipinos bring to the table.
By sharing his experience, David Prichard has given us the keys to a strong start to outsourcing in the Philippines. Listen to the full podcast of his talk with Derek Gallimore of Outsource Accelerator.
References:
https://www.outsourceaccelerator.com/1/
https://www.philstar.com/business/2026/01/29/2504140/it-bpm-revenues-breach-40-billion-mark
Frequently asked questions
Why do companies outsource to the Philippines?
Firms go there for skilled staff, strong English, and lower costs. The country also has a mature BPO sector and solid infrastructure. Together, these let both large and small businesses scale with less risk.
How important is culture when outsourcing in the Philippines?
It matters a great deal. Small cultural habits can shape how staff read your requests. A real grasp of these differences closes gaps fast. As a result, your operation runs far more smoothly.
What should process documentation include for a Filipino team?
It should focus on key decisions and the purpose of each task. Avoid overlong detail that hides what matters. It also helps to shape the wording around local context, so staff can follow it with ease.
How do you measure performance for a small outsourced team?
Start with a few clear KPIs tied to real outcomes. Small teams often juggle many jobs, so keep the measures simple. Review them often and adjust as the team and workload grow.
Is outsourcing to the Philippines only for big companies?
No. Big firms may build their own BPO sites. Yet small and midsize businesses can use third-party providers just as well. In fact, outsourcing lets smaller firms access talent they could not hire alone.
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