Everything you need to know about Outsourcing in the Philippines

Everything you need to know about Outsourcing in the Philippines

Are you looking for ways to grow your business but don’t want to spend more?

Growing your business means investing more in resources, manpower, systems, and more. It is a great risk especially if you are a startup working with a limited budget.  

That is why a lot of businesses started considering other platforms or business models to grow while spending less. And one of those is outsourcing. 

Outsourcing started in the Philippines in the early 90’s but it got a lot popular in the early 2000s. That’s because a lot of global and foreign companies have started to see the growing potential of outsourcing in the country. 

Today, the Philippines has become one of the main economic destinations for outsourcing. The demand for outsourcing has given the country $38 billion in revenue in 2024, amounting for approximately 9% of the country’s Gross Domestic Product (GDP). It has also opened 1.82 million full-time work opportunities for Filipinos. 

In today’s fast-paced business landscape, outsourcing has become an important business need. Whether you are a startup founder, a growing business, or an established enterprise, here are the things that you need to know to get started with outsourcing. 

 

Why Outsource to the Philippines?

The Philippines is one of the global favourites when it comes to outsourcing. Here are some of the reasons why the country has built its reputation as one of the world’s top outsourcing destinations. 

1. Highly Skilled and Educated Workforce

Producing over 500,000 college graduates each year, Filipinos are known for being skilled in areas like customer service, IT, finance, healthcare, creative design, marketing, among others. There are also seasoned professionals who have good experience working with international clients. That is why it is not that hard to build a workforce in the country with the type of professionals it produces. 

2. English Fluency

English is one of the primary mediums of instruction in schools that is why it is one of the official languages in the country. The country also ranks among the top English-speaking countries in Asia. With this, communication with international clients is easy and very effective. 

3. Cost Efficiency Without Sacrificing Quality

In-house hiring for local talent can be expensive, especially in Western Countries. And outsourcing in the Philippines offers up to 60 to 70% savings on labor costs while having highly skilled Filipino professionals. It is not about cheap labor – it is about having smart and value-driven solutions. 

4. Cultural Compatibility with Western Countries

Whilst Filipinos have unique and colorful culture, it is heavily influenced by Western culture. This makes Filipinos more adaptable to other countries’ business tone, expectations, and work styles. Moreover, this makes them more ideal for roles in customer service, sales, and communication, among others.

5. 24/7 Workforce and Flexible Shifts

Looking for 24/7 workforce support? The Philippines is one of the countries with a thriving night-shift workforce who are trained to work in various time zones. This makes it ideal for round-the-clock operations and customer support. 

6. Strong Government and Industry Support

With outsourcing contributing to 9% GDP of the Philippines, the government actively supports the industry through various tax incentives, infrastructure development, and training programs. They also have agencies that support the industry through the IT & Business Process Association of the Philippines (IBPAP).

 

What Services Can You Outsource to the Philippines?

Are you wondering what kind of services you can outsource? And how it can help you grow your business? Here are some of the services you can outsource in the country. 

Customer Support & Call Centers

  • Voice and non-voice support
  • Email and chat services
  • Technical support

Virtual Assistance & Admin Support

  • Calendar and email management
  • Travel booking
  • Data entry and research

Accounting and Bookkeeping

  • Accounts payable/receivable
  • Payroll processing
  • Financial reporting

Sales & Lead Generation

  • Cold calling
  • Appointment setting
  • Telemarketing

Marketing and Creative

  • Social media management
  • Graphic design and video editing
  • Content writing and SEO

IT & Development

  • Web and app development
  • Software testing and QA
  • Network and systems support

Specialised Support

  • Legal process outsourcing (LPO)
  • Medical transcription and billing
  • Real estate and e-commerce support

 

How to Start Outsourcing to the Philippines

Found the services you want to outsource, but still feeling a bit overwhelmed? No worries, here is the step-by-step guide to help you with outsourcing in the Philippines. 

1. Define Your Needs

The most important thing you need to consider is your needs. What are you after? Why do you need to outsource? Was it because of wanting to save more? Efficiency in work? Growth in the company? Or all of the above?

Your needs will guide you on how to find the right outsourcing partner to help you reach your business goals. 

2. Choose Your Outsourcing Model

For over three decades, outsourcing has evolved into different forms. Today, we have freelancers, BPO companies, and virtual staffing. Here are the differences between the three. 

  • Freelancers (good for short-term, project-based work)
  • BPO Companies (best for dedicated teams with full support)
  • Staff Leasing/Virtual Staffing (you manage, they handle HR/payroll/admin)

This is why it is important to know your needs and goals so you can find the right outsourcing model. 

3. Select a Reliable Partner

Once you know what outsourcing model your company needs, the next thing you need to know is to look for a provider. When looking for a provider make sure to check their proven track record and look for strong client reviews or testimonials. Make sure to clarify all items in their contract terms. Ask them about their pricing. Look for a company that provides you a transparent pricing. And check what kind of communication tools they use and if there is a dedicated support for your company. 

4. Onboard and Train

When you hire an outsourcing partner, make sure that they will help you onboard and train your remote employee or team to align with your brand, processes, and goals. This process is the responsibility of your chosen provider. 

5. Track and Optimise

Once you employ a remote team to your company, make sure to use tools to track their productivity and communication. Having a remote team can be a challenge but with the right tools it can be efficient and smooth. Remember that regular check-ins and performance reviews can ensure long-term success. 

 

Frequently Asked Questions (FAQ)

Still not sure if outsourcing is for you? You may still have more questions about it, or wondering a few things but don’t even know what, so here are some frequently asked questions about outsourcing in the Philippines. 

1. Is outsourcing to the Philippines safe?

Yes. Most reputable outsourcing firms are compliant with international data security standards such as ISO/IEC 27001 which is a globally recognised framework that helps organisations protect sensitive information, manage security risks, and stay compliant with legal, regulatory, and contractual requirements. Another is the General Data Protection Regulation or  GDPR. Moreover, when getting a provider make sure Non-Disclosure Agreement (NDA) and contracts are in place. 

2. What’s the typical time zone difference?

The Philippines is GMT+8, but most teams work flexible shifts to accommodate your business hours. Whether you’re in the US, UK, or Australia, you can get real-time coverage.

3. How do I ensure quality and productivity?

It is important to establish a clear Key Performance Indicator or KPIs to set proper expectations as well as monitor progress. There are tools that you can use such as, some of them are:

  • Slack / Microsoft Teams for chat
  • Zoom / Google Meet for meetings
  • Trello / Asana for task management
  • Hubstaff / Time Doctor for tracking

4. What does it cost to outsource?

Pricing varies by role and provider. Sample monthly estimates include:

  • Virtual Assistant: $750 – $1,200 AUD
  • Customer Support Agent: $900 – $1,800 AUD
  • Web Developer: $1,500 – $3,000 AUD
  • Graphic Designer: $1,200 – $2,200 AUD
  • Social Media Manager: $1,400 – $2,500 AUD
  • Bookkeeper / Accounting VA: $1,200 – $2,400 AUD
  • SEO Specialist: $1,500 – $2,800 AUD
  • Content Writer / Copywriter: $1,000 – $2,000 AUD
  • Video Editor: $1,200 – $2,300 AUD
  • Digital Marketing Assistant: $1,300 – $2,600 AUD
  • Project Manager: $2,000 – $3,500 AUD
  • Software Developer: $2,500 – $5,000 AUD
  • Data Entry Specialist: $800 – $1,400 AUD
  • IT Support Specialist: $1,400 – $2,800 AUD
  • Email Marketing Assistant: $1,200 – $2,300 AUD

 

These prices usually include salary, equipment, HR support, and workspace.

5. Can I scale my team up or down?

Yes. In fact, one of the benefits of outsourcing is flexibility to scale. Most providers offer month-to-month contracts or short-term agreements. So you can try it for a month and if it is working for your company, you can continue. For example, you need customer support during high-demand seasons like holidays, you can employ more remote employees, and when the demand is low, you can downscale easily. Everything will be taken care of for you by your provider. 

6. Will I lose control over my business processes?

Definitely not. Your outsourcing partner will act as an extension of your team. This will give you more time to focus on strategy and growing your business. You are still in control of the outcomes while delegating the day-to-day operations.  

Tips for Successful Outsourcing

Want to know more on how you can outsource and make it a success for your business? Here are some quick tips on how to do it. 

 

1. Start Small

Even though outsourcing is beneficial to some companies, it may not work with others especially if you are not strategic about it. For starters, you may want to have a testing period by employing or outsourcing 1 to 2 remote employees before you upgrade and scale.

 

2. Choose the right partner

Your outsourcing provider can make or break the success of your outsourcing. So it is important to find the right one, not just the cheapest, but the ideal one that matches your needs and requirements. 

 

3. Communication is important

It can be hard to have a remote team since you can’t see and be with them directly. That is why it is important to communicate regularly. It is recommended to have daily huddles or weekly check-ins with your team to know how they are doing and set work expectations daily, weekly, and monthly. 

 

4. Document your process

If outsourcing a remote team works for your company, you may need to hire and do it again. That is why it is important to document your processes to make training and onboarding easier. 

 

5. Set realistic KPIs

KPIs are important when outsourcing remote teams. But you need to make your KPIs SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. Be guided with this so you can track your progress with your remote team accordingly. 

 

Is Outsourcing to the Philippines Right for You?

If you are looking for cost-effective, high-quality, and scalable business solutions to help you grow, outsourcing in the Philippines is one of the smartest and most effective business decisions that you can make. 

 

Skilled workforce, strong cultural alignment, mature and solid outsourcing industry, the Philippines offers a competitive edge for startups or businesses of any size. 

 

Need Help Getting Started?

If you are looking to build your own remote team in the Philippines, we can help.  We, at SOS Global Smart Outsourcing Solutions, are an Australian-owned company and we are NOT a broker. All our staff are directly employed by us. 

You also pay one fee which is all inclusive of your Team Member, IT Setup, Management, and Taxes. No hidden fees or small print. 

We give you peace of mind and an opportunity to leverage the skills of our established and highly-skilled team. There is no lock-in contract. If you decide not to continue with your Outsourcing Journey, all we need is 30 days notice.