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Benefits of Outsourcing to The Philippines

Benefits of Outsourcing to The Philippines

The Philippines is one of the most well-known options when it comes to outsourcing. With its diverse population and educated, skilled workers, outsourcing to the Philippines just makes sense.

The Philippines is known for many things — friendly people, a vibrant, relaxed culture, breathtaking white sand beaches, and the best English language proficiency in Asia. With the outsourcing industry booming, the Philippines has always been ranked as one of the world’s best outsourcing countries. With its population of more than 100 million people, there is no question that you can find world-class skills in the Philippines.

Here’s the deal: We all know the effects of offshoring on domestic employment is a regular part of discussions on international economic policy. Some argue that offshoring reduces domestic employment, while others argue that it may have differing effects. But according to a recent study, offshore activity may actually have positive effects on domestic employment.

Cost Savings

One of the major benefits of outsourcing to the Philippines is the broad difference in cost. Since cutting down costs is the aim of any business, outsourcing is a great investment for large and small businesses. Asset management is an important tool when growing your business. When done properly, cash flow can lead to huge successes for a business — so when you can increase your cash flow without sacrificing quality, it’s a big win.

  • No need to hire more employees: When you outsource offshore, you’re paying laborers as contractors instead of full-time employees. Of course, hiring an employee costs a business in more ways than simply their wages. Training the in-house teams to keep them updated can come with a huge price tag. Companies are able to reduce their overall spending a great deal by paying less than half the usual amount in salaries to their offshore outsourcing partners.
  • Lower overhead costs: Without the extra employees in-house, you won’t need the additional office space full of supplies.
  • Accomplishing tasks at a lower cost: Since wages are much less in the Philippines, you will find you can get the functions needed to effectively run your business done at a much lower rate by extremely skilled pros.   

Find Experts Easily 

Filipinos, both native and non-native, offer many skills. Americans may have the same skills to offer, but you won’t have to pay high wages to Filipino employees. For example,  workers are skilled in customer service, legal transcription, financial services, software development, and many more useful business skills. Outsourcing to the Philippines is exceedingly helpful for a company due to the number of necessary skills they can contribute, not to mention the amount of money American companies can save by paying Filipinos a lower but acceptable wage.

Filipinos also have an excellent work ethic, integrity, values, loyalty, and service-oriented mindset. The friendly working atmosphere they seem to encourage in any organization’s culture makes them easy to work with. They value time and show respect for others. Filipinos typically know how to have fun without forgetting what responsibility entails and keep it professional.

Get Government Support 

The government is really supportive and encourages locals to pursue employment with U.S.-based companies. It makes the U.S. look good for promoting foreign employment. The Philippines are partnered with many countries such as Spain, Portugal, Japan, and many others in the workforce. Filipinos enjoy American job opportunities because they are stable jobs that sometimes are hard to find there.

The Filipino government introduced the Special Economic Zone Act to attract more companies. It introduces the chance for companies outside of the Philippines to gain tax benefits and exemptions like:

  • Four-year income tax exemption for corporations 
  • Exemptions from local tax and permits 
  • Permanent visas for foreign investors
  • Duty-free import of supplies including equipment, raw materials, etc.

The Philippine Government showed its support for the business processing outsourcing industry (BPO) by creating its own Department of Information and Communications Technology (DICT) in 2016.

Timely Completion of Projects 

Have a project that you need done quickly? Outsourcing to a specialist for a particular project to complete for you will improve quality and get done quicker since the expert is ready and waiting to work for you. 

English Language and Western Lifestyle

A lot of the Philippines have taken on the modern Western culture and lifestyle. Filipinos can easily chat with their English-speaking partners and clients since there is no language problem and the topics of interest are alike. Filipinos have very similar interests and tastes to Westerners, whether it’s sports, politics, pop-culture, television, or movies. 

The Philippines’ Western way of life is super helpful, especially in the customer service field. It makes it easier to build rapport and create good business relationships when employees relate to customers and can have a genuine conversation with them.

Delegate Tasks More Effectively 

Time, you know that thing you just can’t seem to get enough of? How can you get everything done in only a 24-hour day? Outsourcing is the answer! You delegate the projects needed so they get handled for you, then you have the time to focus on what you do best — build and grow your business! Those repetitive or “boring” jobs are no fun and just bog you down, so let your offshore team do them for you. 

To successfully grow your business, you have to learn how to protect the time and money you have and make sure you only spend it on the activities and resources that will get you closer to your goal. 

By outsourcing the non-revenue producing tasks, you could focus on core tasks that will grow your business and increase revenue. Which is what all this is for, right?

On-the-Spot Labor 

Because the majority of Filipinos are college-age or just graduated, the country is an excellent place to outsource work for a variety of industries, including Information Technology, Legal and Business Support, Accounting, and Customer Support services. Recruitment is always easily accomplished as Filipinos are always eager to learn and are prepared to discover new outsourcing industry opportunities. If you have a need, just ask, and they will figure out a solution! 


Another huge benefit would be the flexible work schedule. For instance, if you outsource your customer service, your customers will have access to 24/7 service via calls, emails, and online chat. This gives you a huge advantage and leverage against competition that may not offer the same level of service. With more availability and a better customer experience, you will gain more loyal customers, which in turn brings in more revenue.

And we all know the benefits of more revenue.  

Business Growth 

By paying less for various processes, you can take the cost-savings and strategically reinvest them. The cost savings from outsourcing can be redirected to fund other things that would scale your business. For example, generate new products or programs, increase marketing and promotional programs, and upgrade technology.

Greater Control 

You maintain control over the various processes when you outsource since you have a dedicated staff that is always working for you. You give them direction, and then everything is performed as you’d have it. This ensures that quality is held across the board and increases accountability.

Better Risk Management 

A little hidden benefit of outsourcing is that if a company by any chance faces unforeseen problems due to natural calamities, technical crisis or market fluctuations, then the offshore outsource partners can continue working on their assignments so there is not any production delay. This is especially beneficial in keeping the company on track.


If you’re looking to grow and compete for a bigger market share, offshoring parts of your business to the Philippines will be an excellent option. Your biggest savings is going to be in terms of labor. In the Philippines, labor is up to 70% cheaper than it is in the U.S. The key to successfully offshoring certain projects or services your business needs is to find the right partner.

Outsourcing to the Philippines is one of the easiest ways to optimize your processes and, more importantly, save money. With an educated and skilled workforce and a supportive government, you’ll have no difficulty getting immediate support from the Philippines to boost your business’s growth rate in no time!

Ready to take your business to the next level? Call, and we’ll show you how we can help!