Over the past decade, the Philippines has become one of the most sought-after destinations for outsourcing with the BPO industry at its peak and seeing an annual growth rate of around 10%.

The Philippines churns out thousands of new graduates every year, honed by a world-class higher education system. In addition, certifications such as Microsoft and Cisco, as well as other necessary trainings are available in the country, making it possible to find high-quality staff in almost any specialization and for any industry.

One of the biggest appeal of the Philippines for outsourcing is the labor cost. Compared to its western counterparts, labor cost in the Philippines is only a small fraction. Also, since the cost of living is generally low, the price of goods and services like office space, taxes, etc., are also lower.

Although quality is often thought directly proportional to cost, it is not always the case especially in the Philippines. With highly-skilled workers at low labor costs, the Philippines offers foreign investors and companies with an increase in its cost-effectivity and productivity without having to sacrifice the quality of their products and services.

Free Market

Foreign ownership in the Philippines is free in principle and the preferential policy on tax for emerging companies is the top in ASEAN.

Foreign investments are especially open for export-based companies or companies that are not restricted by the Foreign Invested Negative List (FINL), with the government allowing up to 100% ownership. Companies registered with the Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA), under the Omnibus Investment code of 1987, are eligible for multiple benefits such as export tax exemption, income tax exemption for a fixed period, as well as duty-free import of spare parts.

The Philippines ranks among the world’s top outsourcing destinations and has surpassed India as the world’s undisputed call center capital with United States and the UK as some of their biggest outsourcing clients. BPO companies in the Philippines also serve a growing number of clients from Europe, Australia, and New Zealand.

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Hidden Potential

With English as one of the country’s national language, used not only in the business setting but also as the mode of education, communication can be very seamless. Education First’s annual English Proficiency ranked the Philippines as the one of the only two Asian countries in the top 20 globally. With the Filipino’s proficiency in the language, in addition to their familiarity to the Western lifestyle, they can effectively use and converse with their foreign counterparts using the English medium.

The country also has a "population bonus period", which according to the UN forecast, is a period during which the proportion of the working-age population (15-64 years old) increases, is expected to continue until around 2050. Also, the absolute number of working-age population is expected to increase until around 2080. This means that Philippines being a young population, companies have more access to your professionals who grew up with technology and can be competitive in any work environment.