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Outsourcing to the Philippines: A mix of business and pleasure

Posted on February 20, 2014


The Philippines, a tiny island nation located right smack in the heart of the Western Pacific, has become one of the top BPO destinations in the world.  In fact, eight of the country’s urban districts have already made it to Tholons Top 100 Outsourcing Destinations as of December 2014.  Among the cities listed are Davao City in no. 69, and Manila closing at no. 2 next to India’s Bangalore.

According to, the country’s biggest lure is the cost efficiency it can provide prospect investors.  It has the lowest wage and telecom costs among all outsourcing destinations around the globe.  On top of that, outsourcing investors can enjoy tax holidays awarded by the Philippine Economic Zone Authority (PEZA).  But there’s more to the Philippines as an outsourcing destination than cost efficiency.

A destination for work and leisure

Bask under the Samal Island sun, climb up to the peak of Mt. Apo, or enjoy a refreshing dip in the clear waters of Surigao’s Hinatuan River.  The list of adventures and activities you can do in the Philippines can go on.

But more than that, the Philippines also has the infrastructures and technology that can support the demands of the country’s thriving outsourcing sector.

Davao City: the 9th safest city in the world. (“Davao City by Night” by Bro. Jeffery Pioquinto, SJ. Posted in Flickr)

It’s interesting to note that Davao City, one of the world’s top 100 outsourcing destinations, is the 9th safest city in the world.

The country truly has the best of both worlds:  the allure of a tropical paradise, and the ecosystem that is conducive to the growth of the IT-BPM industry.

A nation of young and educated people

The Filipino culture is one that was molded by years of Spanish and American rule.  Hence, the strong and ubiquitous presence of western influence can be seen everywhere in the country, from the law and education system, down to all forms of mass media.  English has become one of the Philippines’ official languages.  It is no wonder why this tiny island nation has become the call center capital of the world.

But English proficiency and western affinity aside, the Philippines also has a strong, massive and trainable talent pool that can support not just the BPO sector but the budding IT and non-voice sector of the industry as well.  According to an article in LA times, 90% of the country’s 100 million are below the age of 55, an advantage that can support the growth of the IT-BPM industry in the country.  It also helps that the Filipino’s emphasis on getting at least a bachelor’s degree has added thousands of college graduates to the talent pool every year.

And it’s not just the graduates, too.  Licensed professionals from variety of fields are hopping in the BPO and ITO bandwagon, thanks to the prospect of a higher pay without having to leave the country.

Work ethics

Filipinos are hardworking and dedicated to a fault.  Once they are assigned a task or a project, they will willingly bend over backwards not just to finish the job but also ensure that they’re giving you the best results possible.  In addition, their hospitality and courteousness spills out to how they deal with clients both on the phone and online.  They will extend their patience to answer all queries and pacify the most irate of callers and clients.

Massive government support

The enthusiastic support of the government in the BPO and the budding ITO industry in the country has also contributed to its fast and immense growth.  Tax holidays are just the tip of the iceberg.  The Filipino government has made a number of aggressive initiatives to further strengthen the Philippine’s position as one of the top outsourcing destinations in the world, from establishing special economic zones to education programs that will bridge the competency gap in the labor market.

Business foresight:  20-20

What better time to invest in the Philippines than NOW?  According to, the Philippines has emerged as the 2nd fastest growing economy in Asia, right next to the sleeping giant, China, all thanks to the robust growth of all business sectors – agriculture, industry, and the service sectors.

With all these perks in just one tiny island nation, outsourcing is definitely more fun in the Philippines.