In the Philippines, business process outsourcing (BPO) is defined as the “delegation of service-type business processed to a third-party service provider,” and it includes industries like call centers, secretarial work, data entry, animation, software design, and video game creation. The BPO industry in the Philippines is growing due to the country’s affordable cost of living and youthful, English-speaking workforce. According to most international research firms, the Philippines is the #1 outsourcing location.
Given below are the 20 reasons why Philippines is the best for BPO (Business Process Outsourcing). If you are still making a decision to whether or not outsource your call centers or other business processes, this post might help you make up your mind.
20 reasons Philippines outsourcing call centers are best for BPO
1. Outstanding V\value
Most businesses choose to outsource because of the lower costs associated with doing so, and the Philippines offers some of the most competitive rates in the industry. As a company owner, you save on office space, legal and HR fees, the newest equipment, taxes, and more in the Philippines. In most cases, a company may save expenses by as much as 60% by outsourcing work to the Philippines.
2. English proficiency
It is estimated that over 70% of Filipinos are native English speakers. Local kids learn the language before school. Once students enter a formal educational setting, their already-strong command of English is reinforced even more. In the Philippines, English serves as the medium of instruction in schools and is the working language of business.
The Philippines ranks 13th in English competence in EF’s most recent English Proficiency Index. After Malaysia and Singapore, this nation is Asia’s third best.
3. Quality and availability of best talent
While there is no shortage of bright people in nations like India, finding and hiring them may be difficult. Hiring trained, ready, and eager staff in the Philippines is far more streamlined. The Philippines’ education system mirrors the US’s, so it’s simpler for North Americans to understand an outsourced worker’s ability level. According to a recent ASEAN Briefing study, 450,000 students graduate annually. In addition, the Philippines government promotes state-run courses in institutions that teach BPO-related skills to students.
4. Young, energetic population
The average age in the Philippines is just 23 years old, making them one of the youngest populations in the world. This demographic grew up with technology and knows how to use it—especially for business solutions. Many young people have access to top-level education that prepares them for the BPO and tech industries, allowing them to enter the market with the required abilities.
5. Reduced legal and management liabilities
The involvement of internal workers in corporate procedures might increase the risk of legal liability and spurious litigation. When you outsource to the Philippines, you avoid such problems because organizations like Loop ensure all local compliance and liability concerns are addressed, freeing up resources for your business. Top-tier BPO organizations also provide competent HR and management personnel to assist you set up business processes such as training initiatives, tax compliance, and so on. As a result, you can give full attention to running your company.
6. The influence of culture
The Philippines is unique among Asian nations because it successfully blends South and East Asian cultures with Western ideas and practices. Much of it stems from the fact that the Philippines has served as a colony for three countries: the United States, Mexico, and Spain. As a result, many Filipinos share Western values and norms since they were raised with Western media. US pop culture is also well-received in the Philippines. This cultural resemblance plays a huge part in ensuring the Philippines is the best BPO location for operations like call centers.
7. Privacy and Safety
The government of the Philippines has played an essential role in fostering the development of the country’s business process outsourcing (BPO) sector. Since outsourcing involves exchanging sensitive data, the Philippines’ 2012 data privacy laws ensure international privacy standards. According to this policy, rigorous laws are in place to safeguard personal data from unwanted access. Hence, even privacy-sensitive sectors like healthcare are now looking at the Philippines as a suitable outsourcing location.
8. Careful government regulation
BPO is a key economic pillar in the Philippines, and the government has done a wonderful job identifying its potential and fostering its expansion via infrastructure and policymaking. This includes cooperating with colleges to provide BPO-specific curricula, establishing TESDA (Technical Education and Skills Development Authority), which helps finance contact center training facilities and has a voucher system, and creating the national information and communication technology council to accelerate business growth.
9. Exceptional opportunities for growth
Many reputable research organizations claim that international customers consistently rate the quality of the Philippines’ business process outsourcing (BPO) sector as outstanding. Performance efficiency was crucial in allowing the nation to reach one million BPO employees in only four years.
10. Increased job satisfaction
Filipino BPO workers have greater access to facilities and a higher quality of life than Indians. Thanks to the industry’s growth, individuals don’t need to leave their nation to find work, allowing them to stay with their family and friends. The increased quality of life for the typical Filipino has boosted the local economy.
11. Workforce flexibility
Scaling up your business can be quick and easy when you have a Philippines BPO organization working on your behalf. Expanding a team is simple and inexpensive, as is reducing your staff if you have seasonal employment or a business takes a downturn. Outsourcing providers are often amenable to entering agreements with little commitment and flexible conditions.
12. Continuous availability, irrespective of time zone
Many people in the Philippine workforce are trained to work around the clock. The Philippines can provide business solutions throughout the clock, regardless of your company’s or customer’s time zone.
Despite the 12-hour time difference, the United States is the Philippines’ largest trading partner. To accommodate US business hours, the Philippines has a significant portion of its outsourced workforce (about 60%) operating exclusively through the night.
In the Philippines, this is quite common. Similarly, weekend coverage and alternating shifts are normal working conditions in the outsourced sector. This is especially useful for customer service and online sales, which demand 24/7 assistance.
13. Growing economy
The Philippine economy has shown impressive growth in recent years, rebounding strongly from the pandemic. In 2023, the economy grew by 5.9%, one of the fastest rates among emerging markets. This growth is supported by robust consumer spending, increased government spending, and significant investments in infrastructure. The outsourcing sector, particularly BPO, continues to play a critical role in this economic expansion, contributing a significant portion of the GDP. Additionally, the Philippine government’s efforts to improve the business environment have attracted foreign investments, further fueling economic growth.
14. Long history of involvement with the BPO sector
The BPO industry in the Philippines has grown significantly since its inception in the early 1990s. Over the past three decades, the sector has become a cornerstone of the Philippine economy, contributing about 8% of GDP. By 2023, the industry was valued at $35.4 billion, with projections to reach $37.87 billion in 2024. BPO is a key and valued part of business culture in the Philippines.
15. Customised solutions for diverse business needs
The Philippines’ BPO industry stands out for its ability to offer customised solutions tailored to the specific needs of diverse businesses. Whether you’re looking for customer support, technical assistance, back-office services, or creative outsourcing, Philippine BPO providers can adapt their offerings to meet your unique requirements. This flexibility ensures that businesses of all sizes and industries can benefit from outsourcing, making the Philippines a versatile and reliable partner in business process outsourcing.
16. Latest tech
Regarding information and communications technologies (ICTs), the Philippines is at the cutting edge of innovation. Concerned about the security of your private data when you outsource? In 2012, the Philippines passed the Data Privacy Act, which upgraded the country’s BPO industry to comply with global safety norms. Protecting the privacy of patients’ medical records is a top priority. Thus several rules are in place to ensure their safety.
17. Culture of dedication and hard work
Culture-wise, Filipinos place a premium on working hard and taking pride in one’s accomplishments. Unlike in Western countries where outsourcing jobs are often seen as nothing more than freelance or casual work, in the Philippines, they are taken seriously as careers in their own right.
Therefore, you can rest assured that your remote workers will put extraordinary effort and knowledge into their tasks. Data input, website development, and customer service are all handled to a high level, and on time.
18. A Powerful Educational System
Effective communication is a hallmark of a reliable employee. Another aspect is the skills they have acquired. In Filipino society the outsourcing industry is seen as a respectable occupation, which means there is a sizable population of highly educated people who are interested in working with you and who meet your requirements.
It’s easy to find Filipinos with the necessary expertise and degrees from prestigious schools. Because of this, it’s easy to find competent professionals for use in your business.
19. Filipino work ethic
The Filipino people have the commendable quality of being both welcoming and competent. They are concerned for their fellow employees’ welfare and the success of the business they help run. They go above and beyond the call of duty to complete projects, but never at the expense of their rapport with coworkers. Perhaps it’s because so many were brought up in tight-knit communities and huge families, but Filipinos seem to have an innate talent for making and keeping friends. These qualities, of course, also mean that Filipinos tend to be excellent employees.
20. Strong support for small and medium enterprises
The Philippines’ BPO industry is not only advantageous for large corporations but also highly supportive of small and medium enterprises (SMEs). By offering cost-effective services and flexible engagement models, the best Philippine BPO providers empower SMEs to compete on a global scale. These services include scalable operations, access to top talent, and customised solutions that allow SMEs to grow and innovate without the financial burden typically associated with large-scale business operations. This strong support system makes the Philippines an ideal outsourcing destination for businesses of all sizes.
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