Why Are Companies Outsourcing to the Philippines?


3 Minute read

As more and more small businesses are being set up each year, entrepreneurs are looking to seek affordable means to expand their ideas and compete in the market. A great idea should not be suppressed by a burdening workload, lack of skill or business set up costs. Outsourcing was once a process reserved for large companies looking to offshore their call centres, but now companies of all sizes are leveraging the benefits of outsourcing tasks. Outsourcing will continue to grow as more companies see the potential to tap into a capable and affordable workforce.

The most common reasons for people seeking a remote team are

  • They could not afford the overheads in their domestic country
  • Staff salaries were too high locally
  • There was a lack of local talent within their salary budget
  • The workload was too sporadic to justify an annual salary
  • They wanted to free up their time of menial tasks to they could concentrate on growing their business.
  • Continued Economic Growth in the Philippines

Why is the Philippines an outsourcing destination?

Stable economy

The Philippines has the fastest growing economy in Asia and there are no signs to suggest it slowing down. Low inflation and low-interest rates are both contributors in driving this expansion. Consumer spending is on the rise and the Philippines is much less reliant on exports compared with other Asian countries. The country’s growing population of young skilled graduates is also a big contributor to its economic expansion

Manila Infrastructure

There has been huge development of the infrastructure of Metro Manila and surrounding areas. Future projects will focus on railway and airport improvements as well as mega bridges that will connect islands to islands. The offices in the urban areas are modern and airconditioned. The extensive availability of international telecoms services with abundant connectivity allows for global companies to successfully operate from the Philippines. The affordability and modern infrastructure allow for both major global companies to perform operations and small businesses overseas to take advantage of outsourcing with minimal overheads.


Despite the growing infrastructure, there is still an abundance of affordable real estate in the Manila business hubs which allows companies to meet the demand of office and call centre space. The low-cost rental means lower overheads for companies choosing to outsource. Wages in the Philippines are relative to the economy and much lower than Western countries. This means you have access to a skilled talent pool at much lower costs than you could hire locally.

Skilled Filipino workforce

The Philippines has a highly skilled and young workforce with 90% of its 100 million population under 55. Three Filipino Universities featured in the Quacquarelli Symonds rankings for graduate employability. Check out our blog Young, Skilled and Employable. Educated and skilled Filipinos have an excellent grasp of the English language – it’s the official business language. They have a soft American accent making outsourcing to the Philippines more appealing than other Asia countries.

The demand for skilled workers at lower costs allows small businesses to grow and compete in the market like never before. Click here to find out how Deployed can help your business grow.

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