Choosing the best outsourcing destination for your outsourcing initiative can either make or break your business. It is important to carefully consider the location of any company you are thinking of outsourcing to, as the location can affect a number of factors such as the cost of labor, the quality of work, and the time zone differences.  

In this blog article, we explained why the Philippines remains the world’s top outsourcing destination along with other key players in the global BPO industry:

Which country is best for outsourcing? 

Depending on the particular requirements and preferences of your business, several countries may be the best choice. India, China, the Philippines, and numerous nations in Eastern Europe are some popular locations for outsourcing, and each has distinct advantages and strengths.

For instance, China and Eastern Europe are known for having cheaper labor prices whereas India and the Philippines are known for having a huge pool of English-speaking workers. It is crucial for businesses to thoroughly weigh their options and select the location that best meets their business objectives.

Which country is the most popular outsourcing location? 

There are many popular outsourcing locations around the world, and the one that is considered the most popular can vary depending on a number of factors, such as the type of work being outsourced, the industry, and the specific needs and preferences of the company doing the outsourcing. 

Some of the popular outsourcing destinations include India, China, the Philippines, and many countries in Eastern Europe. India is popular for its cheap software development services while the Philippines is widely known for its world-class customer support services. In fact, it has been dubbed as the world’s call center capital in the last decade. 

Which country is the world leader in BPO? 

Tholons releases a ranking of the top outsourcing countries every year. The ranking is based on factors like digital competitiveness, population, total workforce, and literacy rate. The top countries shaping the future of the global BPO industry are the Philippines, India, China, Poland, and Mexico. 

• The Philippines is known for its call centers and ranks first for voice-related services.
• India is a leader in software outsourcing and has a large number of tech specialists.
• China is a manufacturing hub due to its business environment, lack of regulation, and low taxes and labor costs. 
• Poland has a large market for outsourcing services in Eastern Europe, especially in finance and accounting. 
• Mexico and the US share the same time zone, making it easy for US companies to outsource administrative functions at a low cost.

Why is the Philippines a good location for business?

The Philippines has been the top outsourcing destination to many multinational companies, including but not limited to Google, Microsoft, and Amazon. Here are some of the major reasons why the Philippines is a good location for business:

A large pool of skilled workers 

Every year, the country produces over a million university graduates, many of whom enter the BPO industry. It was estimated that more over 1.6 million students graduated from 200 state-run higher education institutions in 2023.

Competitive salary rates

Western countries have significantly higher cost of labor than developing countries. As of 2024, the minimum wage for the United States is $7.25, while it's $12 for United Kingdom and $15 in Australia. Meanwhile, for developing countries, the minimum wage are as follows --  China ($3.5), India ($1.52) and Philippines ($1.35).

Superior English Proficiency

The Philippines is known for having a high proficiency in English, ranking 14th globally with a 92.5% proficiency rate. In a 2020 English proficiency index of 24 Asian countries, it ranked second.

Adaptability to different time zones

Filipino agents can work for their clients on night shifts and even during weekends and holidays. When you outsource to the Philippines, you can get after-hours customer support and 24/7 customer service. 

Strong government support

The Philippine government is committed to supporting technical education to prepare future employees for the BPO industry. Recognizing the industry's vital contribution to the economy, the government has implemented several strategies and laws to foster its growth and ensure a conducive environment for its operations:

Republic Act No. 11165 (Telecommuting Act): officially recognizes telecommuting or remote work as a legitimate work arrangement, allowing employees in the BPO sector to work from home or other locations outside the office

Data Privacy Act: aligns with International Data Privacy Standards in requiring all service providers to safeguard clients' confidential information to ensure the protection of sensitive data against security threats

Special Economic Zone Act: provides significant tax incentives, exemptions, and other privileges to foreign investors in the BPO sector (income tax holidays, exemptions from national and local taxes, and duty-free importation of capital equipment, etc.)

Strong affinity with Western culture

The Philippines' history as an American colony from 1898 to 1946 has deeply ingrained Western culture into its fabric, making it uniquely attuned to Western sensibilities in Asia. This period of American influence has left a lasting impact, weaving elements of American culture into the Philippines' own cultural tapestry.

Today, the Philippines stands out in Asia for its pronounced affinity for Western traditions, especially evident in its embrace of American cuisine, sports, music, and cinema.

Outsource to the Philippines for a 70% Cost-Reduction on Operational Costs

Companies that have successfully outsourced to the Philippines saw faster ROI from their outsourcing initiatives. Not only did they reduce their operational costs by up to 70%, but they also increased their efficiency and freed up internal resources resulting in higher revenue growth. If you want to get your outsourcing journey off to a good start, consider partnering with ManilaPros!

At ManilaPros, we offer a five-star customer care for retailers. We're a full-service outsourcing company, so you can count on us for your customer service needs, including multichannel support, managed CS operations, and a team of vetted and certified Pros.

Contact us today to learn more!