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6 Reasons why investing in Philippine outsourcing should be your top business priority

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Business Process Outsourcing has successfully helped businesses achieve their goals of running their processes smoothly through the help of another party. With this, a contractor is chosen by a business entity to handle other parts of operations such as recruitment, digital marketing, graphic designing, financing, animation, and other ad-hoc tasks.

The contractor then facilitates the work, while the main entity focuses on other ventures to further expand their business.
The World Bank reported that the global BPO industry in 2016 amounted to 24 billion USD.

Here in the Philippines, Business Process Outsourcing is one of the most lucrative sectors. In fact, it makes up 10% of our country’s economy with an annual revenue of 24 billion USD in 2016.

The Philippine BPO industry has made remarkable improvements over the past few decades, tripling its growth of global market shares from 4% to 12.3% within 10 years.

While you might be thinking about what the Philippines has to offer to the worldwide market in terms of business process outsourcing, this article will help you answer your questions.

Here are 6 reasons why you should choose Philippine BPO’s for the sake of your business.

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1. The abundance of skilled workforce

Employing over 1.3 million professional Filipinos, the Philippine BPO is expected to house more than 1.5 million employees by 2020. A recent survey released by PhilJobNet, a government-sponsored job site revealed that there are 1, 029 positions open for contact center opportunities. This makes up 17% of the job site’s available positions to be filled in.

The Philippine government has launched a short-course training program by Technical Educations and Skills Development Authority (TESDA) aiming to train individuals to prepare them for contact center employment. The training consists of enriching skills in communication, problem-solving, probing, logical reasoning and customer handling.

As all contractors welcome new hires into their operations, all contact centers from the Philippines provide substantial training before agents formally begin to work. Product specifics, communications and culture, call-handling, call flow, and industry standards are all scopes of the new-hire training.


highly-skilled Filipino workforce
The abundant and highly-skilled Filipino workforce makes it a great choice for SMBs and startups

2. Affordable labor costs

An individual starting out his career with a call center company can be compensated at $400 USD and gradually increase to $600 USD.
This means that any foreign company who would vie for Filipino expertise is given the privilege to pay only a fraction of the costs compared to employing native English speakers.

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Employing a professional from the US or UK can be of the hefty price, as they normally would be compensated from $20-$50 USD depending on their experiences and skills.

However cheap, Filipinos offer a very credible qualification- the ability to speak English with a neutral or minimal accent.

3. Linguistic ability

As mentioned above, Filipinos can speak in a near-native tone. In fact, there are Filipinos that can reach C2 level in the CEFR (Common European Framework of Reference for Languages).

Back in August 2012, the Philippines ranked the top of GlobalEnglish Corp.’s annual Business English Index (BEI) examination. The country scored 7.5 clearly proving the citizen’s high proficiency in the native language.

On the other hand, Philippines ranked third in the EF English Proficiency Index (EF EPI) with the highest number of Asian English-speakers soaring to almost 61%.

The Philippines became a better choice than India, Singapore, China and Korea due to their easy adaptability to accent and enunciation. The cultural affinity is also an advantage of the Filipino people as we have been colonized by the Americans for 33 years.

Contact Center Association of the Philippines emphasized the fact that voiced accounts dominate the Philippine outsourcing revenue comprising of 69%, while finance is situated in 15% in 2016.

Filipinos are known for being warm, cooperative and approachable in nature
Filipinos are known for being warm, cooperative and approachable in nature

4. Continuous industry growth

The Local information technology-business process management (IT-BPM) sees a whopping increase in its revenue at the end of 2022, predicted to reach around $40 billion USD.

While the annual revenue of the Philippine BPO industry declines to approximately $1 billion USD from 2016 to 2017, Kittelson & Carpo Consulting stated that the IT-BPOs in the Philippines are fastly recuperating.

In 2015, Manila has overthrown Mumbai in Tolon’s ranking of the top business outsourcing destinations worldwide. This implies that the Philippines is clearly one of the most preferred locations for foreign investors to set up their businesses.

The Philippines is the world’s most favored call center destinations with companies such as Accenture Plc, Convergys Inc. American Express Co., and JP Morgan Chase.

world’s top call center destination with companies like Accenture Plc and American Express Co. among those that have set up shop in the Southeast Asian nation.

5. Cost-effective choice

Upon sealing an agreement with a sub-contractor, a foreign firm can focus on core businesses without the need for supporting the offshore workforce directly.

The contractor will prepare the workers’ necessities such as medical insurances, retirement plans, government-mandated benefits, loans assistance, and payroll. Apart from this, the contractor is also responsible for recruitment, training and business development. This lets you manage your business while avoiding expenditures.

A worldwide survey of business fountainheads revealed that 59 percent of these leaders pointed out they use outsourcing services for cost-cutting. Other top factors are to solve capacity issues and giving them the ability to focus on core business.

The Philippine government also supports your interest in managing your business finances. The Philippine’s Republic Act 7916 gives the newly-established BPO companies a chance to cut costs through exempting them from paying national as well as local taxes. With this, the business must agree to contribute only 5% of their gross income to serve as their tax.

 cost-friendly and quality-wise filipino outsourcing
Filipino outsourcing is known to be cost-friendly and quality-wise

6. The progressive economy

Philippine economy drastically improved over the years and has shifted from agriculture to labor and manufacturing. The Philippine BPO has replaced the Overseas Filipino Workers sector remittances in comprising the country’s annual revenue.

International Monetary Fund statistics placed the Philippines as the 39th country with the largest economy globally in 2015. Deemed as one of the ‘emerging markets’, the World Bank predicted the Philippines’ gross domestic product (GDP) to increase by 6.7% in 2018-2019.

The full economical year of 2017 led the Philippines’ economy to a 6.7% growth rate, within the predicted range of 6.5-6.9%.

The World Bank together with other notable industry experts forecasted $25 billion Philippine BPO industry revenue by the end of 2016. Moreover, it is projected to be even more ground-breaking as it is expected to reach to $55 billion in 2020.


Manila BPO contact centers
Manila is home to towering BPO contact centers


To enrich your knowledge and stay updated regarding the trends of Philippine Outsourcing, Outsource  Accelerator and their blog, The Source provides a great amount of reliable information, articles, research, and statistics.

In a nutshell, Philippine BPO is a very credible choice for any investor who desires great improvements for his business. With evident competitive edge against countries in the field of outsourcing, this archipelago has proven that it can withstand transitions.

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Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

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Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.