Despite several changes in our political regimes, fluctuations in the USD-PHP exchange rates over the years, and the COVID-19 pandemic, the Philippine outsourcing industry stood firm. It was reported that in 2023, the country beat revenue and hiring targets in the previous year.
However, one advancement weakened the industry: the rise of artificial intelligence (AI). The outsourcing industry is reported to be impacted by AI, just like the rest of the labor market. But the impact is not as destructive as one might think. The outsourcing industry remains resilient, and AI is said to have yet to trigger the widespread job losses many feared.
Currently, the Philippines remains the world’s second-largest IT-BPM destination behind India. Furthermore, it is projected that the industry will gain revenues of $42.3 billion and employment of 1.96 million workers by the end of 2026.
Why Businesses Love Philippine Outsourcing
Philippines is known as one of the top destinations for outsourcing for three main reasons: English proficiency, work culture, and cost efficiency.
As of 2025, the Philippines ranked 28th out of 123 countries and 2nd best among its neighboring countries in the English Proficiency Index (EPI). The country scored 569 points out of 800, earning a “high proficiency” rating. This rating indicates that the country is proficient enough to make presentations at work, understand TV shows, and read newspapers.
Furthermore, it was reported that out of 10 Filipinos, nine have basic literacy skills and seven have functional literacy skills. This means that almost all Filipinos can also read, write, understand, and compute. More than a majority of Filipinos also have a higher level of comprehension skills, such as integrating two or more pieces of information and making inferences based on given information. Therefore, Filipinos are not just capable, but also efficient in meeting business needs such as document and data processing, onboarding, and administrative duties.
Filipinos are also known for building strong work relationships, politeness, flexibility, and deep respect for hierarchy. This makes them compatible with most kinds of work and employers. Even the time difference becomes the least of the client’s issues since Filipinos are adaptable to any time zone and are able to be productive despite it.
Lastly, businesses benefit from outsourcing Filipino workers because of their low cost. Labor in the Philippines is cheaper compared to Western countries, allowing them to save on expenses without compromising their operations.
Be Careful, Not All Cheap Outsourcing Is Good
However, tread carefully when hiring cheap labor. While it can save on operating costs, some outsourcing companies hire employees for cheap because of their lack of credentials and skills. Some companies would disregard the needs of the clients just so that they can profit quickly. Which is why it is important for businesses to research thoroughly, check reviews, and ask the right questions when outsourcing manpower. Make sure that they are well-equipped with the skills and credentials to help your business succeed. For example, in law firms, they should look for people who are trained by lawyers for lawyers, like in Ideal Ignite. By doing so, you would get your money’s worth and maximize your productivity.