The U.S. and the Philippines have always had strong relations when it comes to business. Small U.S. companies and large corporations both know how to make use of Filipino agencies to streamline their business operations. Filipino Business Process Outsourcing companies, or BPOs, have become useful partners as they provide jobs that would otherwise be difficult for U.S. companies to fill.

No matter the industry, businesses outsource many of their different functions to these firms — many of them involving routinary tasks that can be handled remotely. As of 2021, 85% of outsourcing work comes from U.S. companies specifically. The most outsourced of these functions are marketing, IT, logistics, accounting, and HR/recruitment-related functions. This makes their process flow much more seamless and efficient.

So why do U.S. businesses see the Philippines as a sweet spot for outsourcing? Aside from the usual reasons for cost reduction, easy communication, and highly productive workforces, there are also other game-changing benefits:

The Special Economic Zone Act

In 1995, the Philippine government set up something called the Special Economic Zone Act, or SEZ. This act serves as a welcome mat for international businesses to set up operations in the Philippines. It originally aimed for companies to set up physical offices and plants in the Philippines, but this act now covers companies that want to start remote operations in the country as well.

So what is it exactly? Companies covered by this act can enjoy government subsidies, lower tax rates, and even tax exemptions in these economic zones. Companies also enjoy a smoother path to setting up their business in the country, as the process to obtain licenses and permits is streamlined just for them. Within a special economic zone, the government also invests in the development and infrastructure of roads and office buildings, making it more accommodating for local employees to work at such companies.

In a nutshell, the SEZ is a win-win arrangement that benefits both international businesses and the Filipino economy. If you’re looking to expand your business globally, the Philippines is the perfect place to start to enjoy financial advantages and smoother business operations.

Outsourcing Helps the Philippines' Economy

On the topic of the Philippines’ economy, it has grown a lot ever since the first contact center was established in 1992. The BPO industry has helped the country’s economy, contributing to 7.5% of the country’s Gross Domestic Profit (GDP) in 2021, and provides $25 billion annually in revenue to the country. This number only steadily increases by 8-10% every year.

Even despite the recent pandemic, the industry has fared well, with work gaining a steady increase due to companies implementing remote work provisions for employees. As things go back to normal and companies return to the office, the growth of the industry is expected to rise by 300% of pre-pandemic levels. This is a testament to the strength and resilience of the industry as a whole.

Outsourcing Provides Jobs for Qualified Filipinos

One of the reasons companies outsource is due to a skill shortage or a lack of qualified people in their area. Outsourcing provides a solution to these dilemmas since BPOs employ plenty of skilled candidates, many of which are college graduates. Many such companies can also fully handle recruitment and onboarding, mitigating the stress of the hiring process for U.S. businesses.

It goes without saying that outsourcing companies give Filipinos better job opportunities. There are 1.3 million Filipinos employed in outsourcing companies across the country. Employees working under these companies enjoy stable incomes and benefits above the country’s minimum.

So what's in it for U.S. businesses?

As mentioned, outsourcing agencies give a leg up to companies using their services.

  • High-cost efficiency
  • Increased productivity and performance
  • Gives access to expert people and specialized services
  • High cultural compatibility
  • Strong communication and English proficiency
  • Allows businesses to focus on core competencies

All in all, partnering with a Filipino BPO or outsourcing agency is a win-win for all parties involved. Businesses can have access to experts and efficient teams, as well as save on costs. On the other hand, it also provides jobs for millions of highly skilled Filipinos and contributes to the economies of both the client and partner agency.

FGC+ can connect you with a team from the Philippines. We can recruit, onboard, and continuously monitor your dedicated team’s performance. Learn more at our website: