Home — Internet News Why US-based companies prefer to outsource to the Philippines

Why US-based companies prefer to outsource to the Philippines

by Mary Sewell

The Philippines has a long and prosperous history in the world of outsourcing. Since the global phenomenon of business process outsourcing – BPO for short – skyrocketed in the last few decades, the Philippines has quickly become a global leader in the industry. BPOs in the Philippines employ more than 1.4 million Filipinos, with many more eager to join the industry with the promise of a lucrative and well-respected career. What’s more, the industry has contributed more than $30 billion dollars a year annually to the worldwide economy and is on track to grow exponentially by the year 2030.

Free A Man and a Woman Working in Call Center Stock Photo

There are many reasons for the country’s great success in this sector, but one of the primary ones is its government’s investment back into the industry. This comes in both financial and political support – specifically, in deregulating the sector for foreign companies to take part in without worrying about international bureaucracy and law. Philippines’ former president Rodrigo Duterte, recognizing the sector’s crucial role in the country’s economy, even declared the country’s BPO sector essential during the COVID pandemic to allow call centres in the Philippines to remain open during the lockdowns. Even in times of uncertainty, the Philippines’ BPO industry maintained its stability in ways that many other countries did not.

Thus, utilising outsourcing services in the Philippines is a smart business move for many foreign companies, especially in a global market where in-house employment can eat into a tight profit margin. The Philippines specifically is the premier destination of outsourcing because of the country’s dedication to education. The government’s investment into this industry of almost $300 million has ensured that public universities across the country train students to enter the BPO workforce.

As of 2022, many of the Philippines’ world-renowned universities offer degree programs, specialised certifications, and continuing education in contact centre work, western relations, and business management. Many of the workers of contact centres in the Philippines are college-educated and extremely motivated to learn and rise in the ranks. As more and more foreign businesses take notice and move their operations from in-house to the Philippines, BPO companies have improved their training methods to keep up with the fast-moving markets.

Many contact centres in the Philippines have the most up-to-date technologies enabled for their workers to answer customer calls, work remotely on IT support, enter data, program software, and more. While this technology improves workflow efficiency and improves the quality of the work, the real value is within the workers themselves, something BPO companies have realised. Many workers are encouraged to take part in training programs monthly, and some companies even pay workers to go back to school and learn valuable new skills. As the industry continues to explode, it’s clear that companies and the Philippines’ government will continue to play a pivotal role in continuing its expansion.

In summary, there are many uniquely positive qualities about the Philippines’ BPO sector. Government deregulation of the industry, allowing for foreign companies to easily start outsourcing to the Philippines and support from companies and the government in providing opportunities for continued training are just two reasons that the Philippines is the ideal country for outsourcing. For many businesses, it would be a mistake to not take the leap and take advantage of the vast benefits of BPO to the Philippines.

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