6 Reasons Why Companies Choose to Outsource Work to the Philippines

With rising labour costs, increasing competition, and ongoing skills shortages worldwide, many small businesses are rethinking how they resource their operations. One proven strategy is to outsource work to the Philippines — a model that offers significant savings, access to skilled talent, and operational flexibility.

Over the past two decades, the Philippines’ outsourcing sector has evolved into a sophisticated ecosystem, underpinned by supportive government policy, world-class infrastructure, and a workforce that combines technical expertise with cultural fluency. 

Case in point: The business process outsourcing (BPO) market alone is projected to generate US $770.68 million in revenue in 2025 and is forecast to grow at a 6.71% CAGR from 2025 to 2030, reaching US $1.07 billion by the end of the decade. This sustained growth signals a stable, opportunity-rich environment for businesses and startups looking to expand capabilities while controlling costs.

In this article, we explore the key reasons companies choose to outsource work to the Philippines, the types of roles available across industries, and how to get started.

What are the benefits of outsourcing to the Philippines?

The benefits of outsourcing in the Philippines go well beyond cost reduction. It’s about building a more agile, scalable operation that can deliver exceptional customer experiences and compete effectively with larger market players.

Here’s why outsourcing to the Philippines consistently ranks as a preferred staffing strategy:

1. Cost effectiveness

Labour costs in the Philippines can be up to 70% lower than hiring locally, without compromising on skill level. The savings extend to reduced recruitment costs, lower office overheads, and minimal equipment investment.

2. Access to a highly skilled and educated workforce

The Philippines produces over 500,000 university graduates annually, with strong representation in business, IT, finance, and creative disciplines. Businesses can tap into a deep, ready-to-work talent pool in roles such as virtual assistants, bookkeepers, digital marketers, and technical support staff.

3. High English proficiency

Ranked second in Asia in the EF English Proficiency Index, Filipino professionals are adept in both written and spoken English. This reduces communication barriers and facilitates seamless collaboration.

4. Cultural compatibility

Filipino professionals share a strong cultural affinity with Western markets. They understand customer expectations, business etiquette, and even colloquial expressions — making them ideal for customer-facing roles where empathy and rapport matter most.

5. Time zone advantage

The Philippines’ time zone gives businesses the flexibility to extend their operating hours or offer true 24/7 customer support. For example, a North America-based company can have overnight tasks completed offshore, ready for action by the next business day.

6. Government support and economic stability

The Philippine government actively promotes outsourcing through tax incentives, workforce training programs, and investments in infrastructure. With a robust economy and decades of proven outsourcing performance, the country remains one of the most reliable destinations for building offshore teams.

Roles you can outsource to the Philippines

When businesses outsource work to the Philippines, they’re not limited to call centre functions. The country offers a diverse range of professional and technical expertise across multiple industries.

Here are some of the roles you can outsource to the Philippines:

Addressing common concerns about outsourcing work

Outsourcing delivers strong results when potential challenges are addressed early. Here’s how to manage the most common issues:

1. Communication issues

Working with an offshore team means different time zones, varied work styles, and the risk of misalignment. To overcome this:

• Establish fixed communication routines (e.g., a 15-minute daily stand-up or weekly planning call).
• Use project management tools like Asana, Trello, or Monday.com to track tasks and deadlines in real time.
• Maintain open channels through platforms like Slack or Microsoft Teams for quick clarifications.

2. Data security

When handling sensitive data, such as customer contact details, payment information, product designs, or proprietary software, any breach can result in financial loss, reputational damage, and compliance penalties.

The Philippines enforces the Data Privacy Act of 2012, which aligns with many international privacy standards. Strengthen your security posture by:

• Work only with providers certified to ISO 27001 or equivalent.
• Use encrypted, secure file-sharing systems like SharePoint or Dropbox Business.
• Restrict system and data access to authorised personnel only.

3. Quality control

Maintaining consistent quality is possible and measurable, even when work is completed offshore. For best results:

• Define clear key performance indicators (KPIs) for every role.
• Provide detailed process documentation and training during onboarding.
• Schedule quarterly performance reviews and feedback sessions to ensure continuous improvement.

Why outsource to the Philippines with Outsourced?

Partnering with Outsourced gives startups and medium-sized companies access to a proven offshore staffing strategy, combining quality, flexibility, and peace of mind.

Here are the reasons why it makes business sense:

Access to the top 1% of Filipino talent

We connect you with the Philippines’ best professionals — selected for their technical expertise, strong communication skills, and cultural compatibility. This ensures seamless integration with your team and consistently high performance.

ISO-certified security and quality systems

Your data and business processes are safeguarded by our ISO 9001 quality management certification and ISO 27001 information security certification. You can operate with confidence knowing your sensitive information is handled with the highest professional standards.

Exceptional staff retention

Our talent stays committed. With a supportive work culture, competitive benefits, and genuine team engagement, we maintain retention rates above 98%, a major advantage when you depend on long-term offshore staff.

Tailored support with your client success manager

Every client is paired with a dedicated client success manager to oversee daily operations, performance management, and team growth. Your goals become our goals, and you’re never managing offshore alone.

Frequently asked questions (FAQs) about outsourcing to the Philippines

1. What is the average hourly rate for an outsourced professional in the Philippines?

Rates vary based on role, skill level, and provider model. While generally lower than in Australia, North America, or Europe, costs depend on factors like expertise, experience, shift requirements, and the level of support included.

2. How do I manage a team in a different time zone?

Most Philippine outsourcing providers can align staff schedules with your business hours, ensuring real-time collaboration. For teams working on different shifts, use project management tools (e.g., Asana, Monday.com) and schedule overlapping hours for meetings and key handovers.

3. What is the typical ramp-up time?

From job briefing to onboarding, most businesses can have their offshore staff in place within 2–4 weeks, depending on the role and the availability of talent. Specialist roles may take longer to source.

4. Are there legal considerations when outsourcing?

Yes. Your outsourcing partner should handle all local employment compliance in the Philippines. You should also ensure contracts include data protection clauses, confidentiality agreements, and intellectual property safeguards that align with your home country’s regulations.

5. Can I outsource just one part-time role?

Absolutely. Many startups begin with a single part-time position and scale their offshore team as they see results.

Build your offshore team in the Philippines 

The benefits of outsourcing to the Philippines are clear: lower costs, access to top-tier talent, greater flexibility, and the ability to operate on a global schedule. It’s a strategic move that empowers businesses to compete with—and often outperform—larger competitors. 

With industry growth backed by the government and success stories in e-commerce, IT, and customer service, outsourcing here is a proven way to scale faster and compete stronger.

Let’s build your offshore team together. We’ll work closely with you to find exceptional Filipino talent that fits your business, culture, and long-term goals.

About Outsourced

Outsourced Philippines stands at the forefront of offshore staff outsourcing, leveraging over a decade of industry expertise to empower over 300 global clients. Our dedicated team of more than 1,000 employees, including 100+ support staff, is committed to building sustainable partnerships. 

We deliver bespoke outsourcing solutions that blend cost-efficiency with exceptional quality, catering to specific client needs across various industries from IT and engineering to creative and administration. At Outsourced, we are more than a service provider; we are a trusted partner in driving sustainable business growth and innovation. 

Discover how Outsourced can enhance your operational capabilities and set new standards of excellence for your business at https://outsourced.ph/.