Why Outsource to the Philippines


Why Outsource to the Philippines?

The Philippines is a newly industrialized country with an active BPO industry. It is one of the top outsourcing destinations in the Asia Pacific region.

Despite having 19 recognized regional languages, Filipinos speak English as if it were their second language. English is actually the official language in majority of schools, offices, and establishments. So it is no surprise that the Philippines is ranked as one of largest English speaking countries in the world.

The Philippines has one of the fastest growing workforces in the world. Every year, the country produces around 400,000 college graduates, 70% of which possess good English speaking skills. This, combined with low labor costs, make the Philippines an ideal choice for outsourced work. (Source: PSIA, 2014)

Here are facts and numbers that signify why the Philippines is an ideal outsourcing destination:

a.) Country Overview

Population: 107 million
Source: CIA Factbook, 2014
Gross domestic product: $272 billion
Source: World Bank, 2013
Gross domestic product (PPP): $896 billion
Source: World Bank, 2013
Gross National Income Per Capita (Atlas): $ 3,270
Source: World Bank, 2013

b.) Cost Competitiveness

Salaries: Software engineer: 10.77% of US
Source: PayScale, SourcingLine, August 2014
Salaries: Senior software engineer: 13.87 % of US
Source: PayScale, Sourcingline, August 2014
Salaries: Customer service manager: 27.82 % of US
Source: PayScale, Sourcingline, August 2014
Salaries: IT project manager: 25.90 % of US
Source: PayScale, Sourcingline, August 2014
Salaries: Operations manager: 29.18 % of US
Source: PayScale, Sourcingline, August 2014

c.) Resources & Skills

Workforce size: 41 million
Source: CIA Factbook, 2013

Adult Literacy Rate: 98%
Source: UNESCO, (2005-2010)

Technological Readiness: Internet access: 22.9%
Source: International Telecommunications Union, 2013



The Philippines, officially known as the Republic of the Philippines, is a sovereign island country in Southeast Asia situated in the western Pacific Ocean.

Capital: Manila
Dialing code: +63
Population: 96.71 million (2012) World Bank
Gross domestic product: 250.3 billion USD (2012) World Bank
Official languages: English Language, Filipino language