Businesses today are always looking for new and practical ways to streamline operations. Top on the list of priorities include increasing efficiency, keeping costs in check, and of course, boosting productivity. A great way to hit all these boxes at once is through outsourcing. With outsourcing, you as a business owner can greatly improve your company’s efficiency by having a dedicated team take care of certain parts of your process.

When we talk about outsourcing, the Philippines certainly comes to mind as a peak outsourcing destination. Fun fact: over 75% of U.S. businesses outsource their operations to this country — and that’s just in 2014. As of 2022, it has overtaken India as a premiere source of talent for offshore teams. So why exactly are Filipino-outsourced teams in such high demand these days? Well, read on as we explore the top 6 reasons that make the Philippines a go-to destination for outsourcing:

  1. Large Pool of Talent

One of the Philippines’ standout qualities is its large talent pool. Plenty of qualified candidates are available to recruit from and hire to assemble your team.

It’s good to note that Filipinos commonly pursue higher education immediately after graduating senior high school, making a considerable percentage of the population college-educated. This abundance of educated talent makes it easier for you to find the right professionals who are qualified for your specific job demands, whether it’s in finance, marketing, IT, customer support, or other fields.

  1. High Cost Efficiency

Outsourcing to the Philippines can cost you only a portion of what you might spend when you handle things in-house. Businesses can effectively do away with a large chunk of operational expenses, such as 60% on labor costs and up to 40-50% on overhead when outsourcing. This cost-effectiveness can have a domino effect on various aspects of your operations: leading you to save on things like infrastructure and technology as well. Thanks to overall lowered costs, you can achieve more financial flexibility that gives you more opportunities to invest strategically for your business.

  1. Full Government Support

The Philippine government acknowledges the potential of its BPO (business process outsourcing) sector. It enacted the Special Economic Zone Act to attract foreign and local investors and later introduced the Philippine Economic Zone Authority (PEZA) to provide businesses with tax incentives. Since then, the government has implemented various programs to support BPO growth. Now, the Philippines has over 700 outsourcing firms across the country, with the BPO industry amassing $29 billion in revenue. This is a testament to the confidence global businesses have in the Philippines’ abilities.

  1. High Cultural Compatibility

Cultural compatibility is also a crucial factor that enables successful outsourcing partnerships. The Philippines’ colonial past (being Colonized by the Spanish, Japanese, and Americans) has created a melting pot of diverse cultures, making it easy for them to work with other nationalities. Their compatibility with Western culture creates a diverse workforce that can bring fresh perspectives to problem-solving. It’s also important to note that ethnically-diverse teams tend to make business more profitable.

  1. The Filipino Working Spirit

Filipinos have a reputation for their positive and spirited approach to work. This inherent trait contributes to a strong work ethic that fosters effective collaboration and leads to high productivity within teams. This is definitely a valuable asset to have in the workplace. When you outsource to the Philippines, you tap into a workforce that approaches challenges with a can-do attitude and a commitment to achieving goals.

  1. Strong English Proficiency

Effective communication is the cornerstone of successful outsourcing. The Philippines certainly excels in this regard. Currently, the country ranks 22nd out of 111 countries in the EF English Proficiency Index, showcasing Filipinos’ mastery of the English language. Within the country itself, English is widely used in public places, and it serves as a primary language for instruction in schools.

In conclusion, the Philippines offers plenty of compelling benefits for businesses seeking to outsource. This Southeast Asian nation is a strategic choice for organizations looking to enhance their efficiency, reduce costs, and tap into a vibrant and skilled workforce.

Let FGC+ connect you with a skilled team from the Philippines. As an outsourcing company that values your business, we can not only source and recruit a dedicated team, but also harness their potential through continuous oversight, upskilling, and leadership and communication training. Here at FGC+, your business is in great hands. Learn more by exploring our website: