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Businesses don’t always have the means to perform the functions required for their growth.
Some businesses are so low on capital, resources, and tools, and these factors make internally investing in business processes and project management a burden despite its necessity. On the other hand, some businesses have to channel most of their time and capital to their core work just to be able to live up to what they are expected to do as a company.
As a result, businesses have turned to seeking help from experts outside their organization. For instance, many companies in the global gaming industry invest in game development outsourcing solutions to open up an entirely new market for their business.
In this article, we talk about the benefits of outsourcing in the Philippines and how you can leverage its power for your business.
Outsourcing Work in the Philippines: The Ideal Business Solution
Administrative functions and project management are part and parcel of every company’s success; however, the work involved can also be time-consuming and financially draining. You have to invest money not only in manpower but also in various hardware and software so your people can smoothly execute these functions. Additionally, the company has to spend just as much — or perhaps even more — on training new personnel. This involves comprehensive training in the following:
- Security measures,
- International data privacy laws,
- Systems management, and
- Software operation,
- And other things
The question then becomes: How do you ensure you get this important yet taxing work done while avoiding all the baggage that having it done entails? The answer is simple, and it lies in firms or companies that have clerical work as their principal expertise. This is where outsourcing businesses step in.
In the past decade, the outsourcing industry in the Philippines has been the go-to of many global businesses for hiring third-party personnel to perform tasks and handle operations. But what exactly are the benefits of outsourcing in the Philippines? Take a look at what makes it a great deal for companies around the world.

Why do Foreign Companies Opt for Outsourcing Work in the Philippines?
Business process outsourcing (BPO) services are the solution to a lot of companies’ structural and production problems. Like in the example above, your company could be facing an issue with administrative functions, and you need professionals to be able to carry out such work. Or your company might need a specific type of software, but you feel hesitant to hire a permanent employee because of how fleeting the project is.
It is for these types of situations BPOs exist. And one of the best locations companies love to outsource work to is the Philippines. The Philippines offers myriad benefits for foreign companies outsourcing to the country, and there are countless reasons why your company should, too.
Here are some of reasons and benefits of outsourcing in the Philippines.
Reason #1: English Proficiency
The Philippines is one of the top English-speaking nations outside the West, and this continues to be the case at present. In the 2019 EF English Proficiency Index (EF EPI), the country maintains its high rank in Asia, coming in second only to Singapore. The Philippines was ranked 20th overall. The fact that the Philippines ranked 2nd in the Asian region bodes well for foreign companies looking to outsource labor here.
Filipinos’ mastery of the English language, alongside other factors, makes outsourcing in the Philippines beneficial to foreign companies — especially for BPO sectors relying heavily on chat support and virtual assistance.
Moreover, the country’s educational system extensively mirrors that of the West — from its K-12 curriculum to its medium of instruction. Western media in the Philippines is also ubiquitous and highly accessible, making the English language even easier to learn.
Reason #2: Cultural Similarities
Establishing harmonious relationships with potential and existing clients creates positive results for your business. And in order to achieve this, the parties involved must see eye to eye not only when it comes to business objectives, but also in terms of behavioral tendencies.
A study published in the Journal of Research and Personality found Filipinos and Americans have “substantially greater cultural similarities than differences” in terms of how their behaviors (referred to as the “Big Five behaviors” by the researchers) play out in different situations. Because of how similar Filipinos’ and Americans’ interpersonal behaviors and expectations are, communication between Filipinos and Americans becomes easier and tends to result in mutually beneficial outcomes.
But one striking similarity between these cultures is how much Filipinos value their career life as well, and you can see it in the way students are taught to work, think, and invest in their future careers. Hustle culture in the Philippines is as prevalent as it is in the US, a fact evinced by the number of small businesses and solo entrepreneurs in the country. This can-do mentality enables Filipinos to accomplish things at a fast pace, something Americans equally value, which pushes them to outsource work to the Philippines.
Reason #3: Cost Efficiency
The cost of living in the Philippines is relatively lower compared to most countries. To live comfortably, a single person who lives in the Philippines and who has no dependents, debt, or health maintenance needs can earn an annual salary three times less than that of a person living in the US under the same conditions.
How does this factor into the cost advantage of outsourcing work to Philippines-based firms? If you outsource work to the Philippines, the amount of money Philippines-based outsourcing firms will negotiate with you is likely to be much lower than the quotation you will receive from US-based outsourcing firms.
This gives you the opportunity and leeway to channel your funds to other core activities your company aims to accomplish. And most importantly, you get to have quality output at a low yet reasonable price.
Reason #4: Flexible Hours
One of the biggest problems in offshore outsourcing is time difference. When you outsource a service to a country whose time difference is 12 hours later than yours, you will encounter incompatible schedules and difficulty in collaboration.
A solution BPO firms like NarraSoft offer is
Reason #5: Booming BPO Industry
The BPO Industry in the Philippines is one that remains strong and rife with opportunities for foreign companies. With the country’s more than 25 years of experience in the field, the Philippines is a great location to outsource business functions to, providing companies seeking to outsource therein a wide array of benefits supported by the country’s government and its people.
Department of Trade and Industry Secretary Ramon Lopez said in his keynote speech the Information Technology and Business Process Management sector in the Philippines can expect its global opportunity to skyrocket to 250 billion USD, from its current 166 billion USD. With this growth in place, you can bet now is the best time to invest in a Philippines-based outsourcing firm.

In Summary
The Numerous Advantages of Outsourcing in the Philippines & How They Boost Your Business Growth
These are the main reasons why foreign and local companies believe outsourcing work to the Philippines is ideal:
- English is predominantly taught in the country, making it a widely used language among Filipinos.
- The cultural similarities between Filipinos and Americans contribute to a great business partnership experience and help with the success of a project’s outcome.
- Compared to the US, the Philippines has a lower cost of living, making outsourcing to the country mutually beneficial to both parties.
- The working hours in BPO firms like NarraSoft can accommodate clients based in any country.
- The benefits of outsourcing in the Philippines have proven to result in positive outcomes given how well the country’s performance is in the BPO industry.
NarraSoft’s outsourcing services range from project development to business processes. You can expect services involving data entry, technical support, 3D art creation, software development, and so many more.
If you’re interested in outsourcing to NarraSoft, send an email to sales@narrasoft.com or drop a message on our chat box or use our contact form. We’re excited to partner with you!
Note: This article, originally published in May 2020, has been updated in October 2021.