Philippines: The World’s Go-To Outsourcing Hub Today

The Philippines is known as a popular outsourcing destination because of its large workforce population and low labour costs. Although the BPO sector comprises a large chunk of the country’s outsourcing industry, the Philippines is also a good source of tech talents for many Western start-ups, SMEs, and big tech firms.

Based on my personal experience working with Filipino developers in our UK-managed IT outsourcing company, I strongly believe in the potential the Filipino tech talents possess.

That said, here are some key factors on why I think the Philippines is one of the top IT outsourcing destinations in the world:

A large and highly competent workforce.

Philippine education, which is patterned after the American system, produces around 130,000 tech and engineering graduates every year, compared to the UK with only 25,000 graduate per year. 

Attractive labour costs.

The labour costs of Filipino talent, whether it be junior-level, mid-level or senior level, are notably lower than their Western counterparts. This is because the country has an overall lower cost of living compared to the West.

The culture of hard work.

Filipinos are known around the world for their dedication to delivering superior service in whatever field they are in. They are also very much willing to work at different hours just to be able to help their clients the best possible way they can.

Filipinos’ high English proficiency.

The country has a 96.6% adult literacy rate. Filipinos are fluent and highly proficient in English, both written and spoken. In fact, Filipino workers are highly preferred all over the world because of their neutral American accent. This makes communication significantly easier as Filipinos can easily pick up instructions from and communicate with their foreigner co-workers and clients.

Adaptability and hospitality of Filipinos.

Another point worth raising is that Filipinos are flexible and hospitable. Add that to the fact that they’re no strangers to the Western culture after having been colonised by the Spaniards and the Americans. They are familiar with Western culture, and they can also quickly adapt to the work requirements, working schedule, and even with the required accents and languages.

Growth of top cities.

The outsourcing industry in the Philippines shows growth not only in Manila but also in other cities outside the capital such as Cebu and Davao, which are considered great alternatives for Manila.

In Cebu, there are already 27 IT Centers and IT Parks operating within the business district, supporting the growth of ITO, KPO, and BPO in the region. Davao, on the other hand, has been largely investing in IT infrastructures. For more information on the top outsourcing cities in the Philippines, you can read this blog: Top Outsourcing Cities in the Philippines.

Realising the country’s potential, our founders set up a shop in the Philippines to cater to the increasing demand for tech talents in the UK. Back home, the UK tech businesses were facing the same issues of skill shortage, costly local hiring, and poor outsourcing experiences. These issues have become the driving force for Cloud Employee to connect highly-skilled Filipino developers to start-ups and large firms in the UK and across the globe.

Currently, Cloud Employee continues to expand and cater to the IT outsourcing needs of many countries. See what our clients say and contact us for a free trial today if you want Cloud Employee to be your strategic outsourcing partner.