• Madonna

Why Outsource To The Philippines?

Updated: Jan 18, 2020

by Madonna - Director / Treasurer of Integrated Globaltech

Manila City By The Bay

In the last 15 years, the Philippines service sector has grown by over 10%, which has in turn led to a significant growth in the Philippines BPO industry.

Between 2004 and 2014 the Philippines BPO industry has more than tripled from 4% to 12.3%, with an anticipated increase of a further 7% by 2020 (OBG, 2015).

For this reason, the Philippines BPO industry is one of the country's most dynamic and is the second largest contributor to Gross Domestic Product.

Already the Philippines BPO industry is serving companies in Asia-Pacific (Including Australia), Asia, Canada, EU and North America and is rapidly becoming the BPO destination of choice.

Here are some of the reasons why;

Economic Growth

During the past decade the Philippine's Government has been promoting growth within it's economy. This has resulted in the Philippines economy being one of the fastest growing economies in the world over the last five years.  Making the Philippines an ideal location from an economic perspective.

This coupled with the low labor costs enables small to medium sized business an opportunity to provide customer-facing services at very competitive rates, while still providing that high level of quality customer care that clients are looking for.

High Achievers

The Philippines workforce are known for being high achievers. This is due to the large amount of college graduates. This is further compounded by the fact that a BPO vocation is one that is highly sought after by college graduates.

In addition, the Philippines is one of the largest English speaking countries in the world.  With the Filipino's being known for their fluency in English and neutral accents, making it even more appealing to those businesses wishing to outsource any customer contact roles to the Philippines.


One of the most obvious reasons to outsource to the Philippines is the cost savings. This is because the estimated salary of a BPO agent in the Philippines is only 14 to 20% of its Western counterpart .

In addition to the significant labor-related cost savings, commercial property and infrastructure is significantly cheaper.

This coupled with the subsidies and tax breaks provided to outsourcing companies, results in even further reduced costs.

For this reason, the cost differentiation between salaries, operational overheads and benefits are all major factors as to why the Philippines is so appealing to clients looking for staff.


BPO companies in the Philippines are some of the most innovative in the industry, having been one of the pioneer adopters of a range of influential BPO technologies such as Internet Protocol telephony and social media platforms, resulting in effective and efficient customer communication channels.


The Philippines now ranks second in non-voice complex services globally (BPAP, 2012).

Adaptability, Diversity and Versatility

As the Philippines BPO industry has grown, it has diversified significantly in breadth and scale of sectors and industries now served.

The BPO industry now delivers services in a wide range of sectors and industries, including engineering, health care, legal, financial, creative, and software services, as well as for energy, banking, investment, insurance and shipping industries.

With this wide range of industries also comes more skilled and educated employees, with a massive 95 percent of Filipino BPO agents having a college degrees, with the variety of industries only expected to grow and prosper in to the future.

If you are interested or wish discuss ways in which we can help to assist in meeting any of your outsourcing needs, please feel free to contact our friendly Melbourne team at Integrated Globaltech on +61 3 9010 5425 or via email at

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