How to Find an Outsourcing Agency in the Philippines (Infographic)


In recent years the global outsourcing industry has grown into a very lucrative industry that is expected to reach the $250 billion level by the year 2020. This tremendous growth is spawned by the growing number of enterprises enlisting the help of outsourcing agencies to perform particular business processes alongside their central workforce.

The tremendous benefits from outsourcing sparked even more interests among other enterprises, many of which have considered and are planning to partner with outsourcing agencies. The COVID-19 pandemic has disrupted the global marketplace, putting mobility restrictions in almost all industries. In the Philippines, the outsourcing industry is given top importance by the government, giving exemptions to BPO companies while following strict health protocols and operational practices.

With more than 800 Business Process Outsourcing (BPO) companies and over 1.5 million freelancers, the Philippines has emerged as one of the top outsourcing destinations preferred by global enterprises of all sizes even before disruptions by the worldwide pandemic. Now, other sectors that have not previously explored outsourcing are looking at this offshore location as a way to adjust and cope up with the new norm.

The only question remaining is how to find a suitable outsourcing agency that these companies – from startups to key industry players – can partner within the Philippines. The following provides an overview of the outsourcing landscape in this country and a comprehensive guide that can help global enterprises find a suitable Philippine outsourcing agency they can work with for the long term.

outsourcing in the philippines

Why Outsource to the Philippines?

From contact center operations to software development, many businesses based in Australia, the United Kingdom, the United States of America, and other parts of the world have partnered with Philippine-based outsourcing agencies to perform these tasks.

The reasons why these global enterprises chose the Philippines as their outsourcing destination could be various, but the following lists down the primary reasons why these companies opted to do so.

  • The Philippines is a Top Outsourcing Destination

Since the year 1992, the Philippines has emerged as a top outsourcing destination for IT, Social Media, and Business Process Outsourcing. The country was tagged as the “BPO Capital of the World” in 2010 and has continuously maintained its position as the top offshore BPO destination.

  • The Philippines is Highly Supportive of the Outsourcing Industry

 Contributing as much as 10% to the Philippine economy, the outsourcing industry is consistently growing with an annual compound rate of 10%, generating millions of jobs and over US$20 Billion in yearly revenue.

 This is why the Philippine government is highly supportive of the outsourcing industry due to its many positive contributions to the continuous growth of the nation, even with mobility restrictions brought about by the global pandemic. Favorable legislation, tax holidays, tax-free importation, and other incentives are pushed forward to encourage further growth of the industry.

  • The Philippines Outsourcing Industry is Cost-Effective

Several research firms have made studies establishing the Philippines as one of the most cost-effective destinations for outsourcing services. The cost of living and occupancy costs in the country is considerably low compared to other outsourcing destinations. This is translated to lower average salary ranges even among highly skilled workforce resources which are often 70% to 90% lower than their western counterparts.

  • The Philippines Has a Huge Resource of Skilled Talents

Among the top outsourcing destinations, the Philippines registers the highest literacy rates at 97.5%, including an impressive pool of skilled talents that work as freelancers or work as a regular employee in the more than 800 BPO companies in the country.

  • The Philippines is Compatible with Western Culture

Outsourcing digital marketing, social media, and contact center operations require good command and proficiency in the English language. As the 3rd largest English-speaking nation in the world, the Philippines has a large pool of personnel with impressive English communication skills and a deeper understanding of attributes and nuances of Western culture.

  • The Philippines Maintain Strong Data Privacy and Security Regulations

The data privacy policies of the Philippines are considered some of the toughest in the region, with violators facing a 6-year imprisonment sentence plus fines that could range between US$20,000 to US$100,000. Such strict implementations assure outsourcing clients that their data and intellectual properties are safe and secured in good hands.


Considerations When Choosing an Outsourcing Agency in the Philippines

While the Philippine outsourcing industry is favorable as a whole, not all outsourcing agencies based in the country are created equal. Most of these agencies provide topnotch services for their clients, but these are some who are simply a cut above the rest.

As a global enterprise seeking for Digital Marketing, Social Media, IT, or Business Process Outsourcing agencies in the Philippines, you, of course, would want to work only with the best service providers offering the best partnership arrangements.

So, how can you find one? Read on and find out just how.

  • Define a Clear Scope of Work

Before you even start partnership negotiations with a prospective outsourcing agency you are eyeing, you must first establish a clear, concise, and precise scope of work – and have this formally written in a technical document.

You must specify precisely the work you need to be performed, the deliverables you need to be accomplished, and the timetable for all these to be completed. With a clear scope of work, the outsourcing agency can have a clear understanding of what you need and can allocate the best solutions and personnel to execute and deliver these needs.

  • Skill Sets, Expertise and Service Offerings

Whether you need software development or require a comprehensive Digital Marketing and Social Media Marketing campaign, your outsourcing agency should have the skill sets, expertise, service offerings, and access to the latest technologies that will enable them to deliver what you need.

  • Aptitude for Communication

Proficiency in the English language is not the only communication requirement you should focus on but on their overall aptitude and attitude towards proper communications. Your outsourcing agency should have excellent communication systems and practices, both internally and externally, keeping you updated on project status, milestones, insights, and issues.

The outsourcing agency should also make use of the latest and most effective communication tools available, including:

  • Project Management Tools
  • Communication Facilities Like Audio and Video Conferencing Tools
  • Performance Tracking and Monitoring Tools, and
  • Project Reporting Tools
  • Business and Cultural Compatibility

 Whether you maintain an agile and customer-centric development process or a results-oriented business environment, it would be best to work with an outsourcing agency that has the same business and cultural acumen that you maintain in your own companies. Such levels of compatibility are essential for further growth and development in your partnership, helping you both reach your visions and goals.

  • Reputation in the Market

Market reputation is critical, and this holds when choosing the best outsourcing agency in the Philippines who you can partner with. Check out your prospective outsourcing agency and their reputation in the market, what their clientele is saying about their services, their clientele reach, and what industry bodies and speaking about them.

  • Data Protection and Security

While the data privacy act is strictly enforced in the Philippines, it would still be to your best advantage to choose outsourcing agencies that have sound data protection and security protocols and implementations. Understand how they handle, manage, and secure sensitive information, including the regular conduction of security audits in their networks and workplace.

  • Flexibility

Sometimes, the most important consideration in choosing an outsourcing partner boils down not in their cost or skills sets, but in how easy and flexible they are to work with. Your partner should be flexible enough to accommodate urgent requirements or make changes and adjustments as called for by changes in the marketplace or current social scenarios.

The Take Away

The Philippines outsourcing agency is facing continuous growth despite challenges in the global marketplace, such as in the case of the global COVID-19 pandemic that is sweeping the world by storm. The time is ripe for global enterprises to make adjustments and consider the offshore service arena – and look for a suitable Outsourcing Agency to work within the Philippines.

Jomer Gregorio

Jomer B. Gregorio is a well-rounded expert when it comes digital marketing. Jomer is also known as a semantic SEO evangelist and practitioner. Check out our Digital Marketing Services today and let us help you in achieving positive and profitable results for your business.