Outsource to Iloilo: An emerging destination outside Manila

Why should you outsource to Iloilo?

Companies outsource to Iloilo for its skilled and highly literate workforce, strong infrastructure, lower costs, and lighter traffic than Metro Manila.

• Iloilo has a 98.8% literacy rate and eight large universities.
• Ayala and Megaworld built award-winning BPO hubs here.
• Living and setup costs stay lower than in the capital.

There is more to outsourcing to the Philippines than Metro Manila. In fact, with the capital’s overdevelopment, high prices, and heavy traffic, many local firms and BPOs now move operations to other parts of the country.

Set in the heart of the Philippines, Iloilo has grown into a popular outsourcing city. It once sat in the Tholons rankings, but it was dropped twice, in 2017 and 2019.

Despite that setback, the local government and private firms stay upbeat about its future. So let us look at why companies should outsource to Iloilo.

Iloilo’s outsourcing climate

Iloilo first grew as an outsourcing hub around the time the Philippines gained global notice. It was one of the Next Wave Cities named by the Commission on Information and Communications Technology (now DICT) in 2009.

Iloilo started with two facilities for future BPO tenants, and it gained traction fast. It first entered the Tholons Top 100 Outsourcing Destinations in 2010, ranking 98th. At the same time, it made the list of “50 Aspiring Cities” on its way to becoming an ideal BPO hub.

Iloilo kept improving over the years. Along with Davao, the city was named a “center of excellence” in 2016 for its booming IT-BPM scene.

Like other emerging hubs, Iloilo faced a few setbacks. It dropped twice from the Tholons ranking, in 2017 and 2019. So far, it has yet to reclaim its spot on the list.

Even so, Philippine institutions remain confident the industry will keep growing. In recent years, more BPO companies have set up outside Metro Manila to widen their reach. Iloilo is one of the most sought-after places for this.

Iloilo statistics

• Region: Western Visayas
• Population: 477,695 (Iloilo City); 2,509,525 (Iloilo Province)
• Regional employment rate: 93.26%
• Literacy rate: 98.8%
• Local BPO organization: Iloilo Federation for Information Technology (IFIT)

Why companies outsource to Iloilo (and why BPOs settle here)

Iloilo is known for its rich culture, warm people, and many awards. For this reason, clients who want to outsource outside Metro Manila often view Iloilo as its “warmer counterpart.”

BPOs also set up here thanks to the city’s strong infrastructure and workforce. In fact, it “took up the most BPO space in 2020,” according to a leading real estate firm.

Here are the main reasons companies and BPOs choose to outsource to Iloilo.

Less traffic congestion

Metro Manila still ranks among the world’s most congested cities in the TomTom Traffic Index. By some estimates, the country loses billions of pesos each day due to this problem. Just imagine how much time BPOs and their clients lose when workers sit in traffic every day.

Iloilo’s local government works to prevent this. For example, it uses measures like “traffic discipline zones” to ease congestion. As a result, more people and businesses have moved to Iloilo to settle and grow.

Superb infrastructure

Iloilo also takes pride in its strong infrastructure. It can compete with Manila, Cebu, and Davao on technology hubs and connectivity. Outsourcing is one of the biggest drivers of the city’s economy. Since 2017, Iloilo has built itself into a premier “smart city,” which cements its “center of excellence” status.

The country’s two largest developers, Ayala and Megaworld, built two of the city’s biggest BPO hubs: Ayala Iloilo Technohub and Iloilo Business Park. These award-winning hubs blend work and leisure for owners and workers alike.

An abundance of academic excellence

Iloilo has held the highest literacy rate in Western Visayas for years, thanks to its many schools. It even earned a literacy award from the Department of Education in 2018.

Iloilo is home to eight large universities. For example, these include the University of the Philippines Visayas (UPV) and Western Visayas State University. Together, they produce thousands of skilled graduates each year. So local and global companies can find an excellent workforce here without going to Manila. This makes it easy to fill many roles outsourced to the Philippines.

Warm and empathetic people

Many say Iloilo excels because of its citizens. Indeed, Ilonggos have a warm and welcoming way with everyone, especially their neighbors. They are known for their resilience, compassion, and helpfulness. They also value their art, history, and tradition, which helps keep their culture rich.

These traits carry into the workplace, especially in BPOs. So companies can expect vibrant, high-quality teams that help them reach their goals.

Strategic location

Set in the heart of the Philippines, Iloilo serves as a gateway to Panay Island. It links to Antique and Capiz by land, and to Guimaras Island by land and water. As a result, Iloilo is a center for trade and finance in the Visayas.

Much has improved across the city and province. Iloilo was named the “most business-friendly highly-urbanized city (HUC)” in 2019 and earned special citations the year after. Given its location and business climate, Iloilo is friendly to investors and local firms in the Visayas. Its costs make it even more attractive for BPOs and clients that want to outsource to Iloilo. It stands alongside other regional hubs like Cebu and Clark.

BPO companies in Iloilo

Over the years, large BPOs have led the way in Iloilo. Here are some of the notable outsourcing companies in the city.

KMC Solutions

KMC Solutions is a well-known staffing and workplace solutions provider in the Philippines. Beyond coworking spaces and private offices, it offers high-quality offshore teams without the need to register a business in the country.

iQor

iQor is a leading provider of technology-based outsourced solutions worldwide. It focuses on customer support and analytics to improve interactions for its clients and their customers.

TeleTech

Teletech is seen as a “worldwide digital leader in CX.” It helps clients reach high satisfaction through digital solutions that improve their operations.

Transcom

Transcom, one of the leading BPO companies, focuses on the best possible customer experience. It calls its people “CX fanatics” and offers digital and staffing solutions to top global brands.

TELUS International

Lastly, TELUS International helps companies prepare to be a “business of the future.” It serves global brands with next-generation services powered by digital solutions.

Services you can outsource to Iloilo

The Philippines has long been known for back-office support and customer service. However, BPO companies have grown their offerings to add more value. When you outsource to Iloilo, you can hand off the following functions. Many firms start with back-office outsourcing and expand from there.

Lead generation and sales

Sales covers many tasks tied to selling a company’s products and services. Before a customer buys, they first have to be drawn in and qualified. Not all leads convert right away. So firms should invest in lead generation and sales to grow steadily. Outsourcing takes the burden off these repetitive tasks. As a result, skilled talent can handle your lead generation and sales and help you reach your target market.

Human resources

It is also easy to hand off human resources offshore. As employee expectations rise, employers want more support in managing their people. An outsourced HR team can handle recruitment, training, and payroll. So one benefit is better employee perks. In turn, firms enjoy lower attrition by keeping staff happy.

Customer support

Customer support, whether by phone or across channels, is still a popular outsourced service. With more ways to reach people, firms should use every channel that suits their customers. Outsourcing this function is a great way to lift customer experience. Most providers, big or small, blend automation with human agents to boost performance. What is more, the warm Ilonggo workforce brings real care and empathy to clients.

What to expect when you outsource to Iloilo

For all the reasons above, Iloilo is set to be one of the fast-rising outsourcing cities in the Philippines. It has the people, the infrastructure, and the investor support that global firms want. If the capital feels crowded, it also pays to compare Iloilo with Metro Manila. When you outsource to Iloilo, expect benefits such as:

• Lower costs. As a developing city, Iloilo keeps living and investment costs low. So you can stretch your savings and profit further.

• Round-the-clock, uninterrupted service. Iloilo faces fewer calamities than Manila. As a result, you can offer nonstop service to your customers.
• Rich culture. Iloilo preserves much of its culture and traditions. So firms that invest here get to experience it firsthand.

Despite these perks, keep in mind that outsourcing has no one-size-fits-all path. It works best with solutions tailored to your needs and goals. Getting started is simple: find a suitable destination and provider, then talk through your requirements.

FAQ on outsourcing to Iloilo

Why do companies outsource to Iloilo?

Companies choose Iloilo for its skilled workforce, strong infrastructure, and lower costs. It also has far less traffic than Metro Manila.

What services can you outsource to Iloilo?

For example, you can outsource lead generation and sales, human resources, customer support, and back-office work. In addition, many firms add more functions as they grow.

Which BPO companies operate in Iloilo?

For example, notable firms include KMC Solutions, iQor, TeleTech, Transcom, and TELUS International. In addition, both large and small providers run teams in the city.

Is Iloilo cheaper than Manila for outsourcing?

Yes, in general. Living and setup costs in Iloilo stay lower than in the capital. So businesses can save more while still hiring skilled staff.

How educated is Iloilo’s workforce?

Very educated, in fact. Iloilo has a 98.8% literacy rate and eight large universities. As a result, these schools supply thousands of skilled graduates each year.

Key takeaways

• Iloilo is a fast-rising outsourcing city outside Metro Manila.
• Its highly literate workforce and universities supply strong talent.
• Modern BPO hubs from Ayala and Megaworld anchor the city.
• Lower costs and lighter traffic make it attractive for BPOs and clients.
• You can outsource sales, HR, customer support, and back-office tasks here.