Outsourcing to the Philippines can reduce your labor costs by 70%. Given the rising costs of hiring in-house talent, this is the perfect option to scale your business within your budget.

But choosing such solutions is not as straightforward as it sounds. You have to consider operational expenses, competitive pressures, and your potential employee’s skills, salary, and reliability before you make these decisions.

To make it easier for you, we have prepared this guide, where we will discuss the unique advantages, disadvantages, and real-life examples of companies outsourcing to the Philippines. By the end, you will know if it’s a suitable option for your business.

???? Don’t Miss Out On These Interesting Reads:

????  15 Outsourcing Examples: Offshoring, Nearshoring, Onshoring

????‍  5 Steps To Build An Outsourcing Strategy That Works In 2024

????  Global Outsourcing 2024: Best Companies, Benefits, Examples

8 Real-World Examples Of Companies That Outsource To The Philippines

Assess your current business needs and compare them with the following examples to see if outsourcing to the Philippines can help you achieve your goals within your budget.

1. Zapier: Customer Service

Outsourcing To The Philippines - Zapier

What This Company Does

Zapier is an online automation tool that helps you integrate your web application to automate repetitive tasks without any code knowledge. It connects thousands of apps like Google Drive and Slack to streamline your workflows and make them more efficient and easy to use. 

Founded in 2011, the company now serves over 2 million businesses globally, connecting more than 7,000 apps through its platform. It has a fully remote team of around 800 employees spread across 38 countries.

????This is interesting:

Known for its ease of use, Zapier has automated over 81 billion tasks for many businesses, including nearly 69% of Fortune 1000 companies​.

(Source)

What They Outsource & Why

Zapier faced a significant challenge in scaling its customer service as it grew rapidly, with an increasing number of users reaching out for support. They noted a sharp increase in call drop rates and customer dissatisfaction linked to long waiting times. 

To understand this issue better, Zapier conducted a survey and identified that users were frustrated by wait times and limited support coverage, particularly during off-peak hours.

The Philippines stood out as an ideal outsourcing location as it offered a large, English-proficient workforce familiar with Western culture, which allowed Zapier to maintain high-quality, empathetic interactions with customers.

Results

Zapier achieved around 50-70% cost savings in customer service operations while significantly improving response times and lowering call drop rates. Thanks to Filipino customer service agents’ effectiveness in handling customer queries, customer loyalty and retention improved as response times shortened and the quality of service remained high.

????️ Here’s something we thought you should remember:

You can increase your customer satisfaction to 95% and reduce operating costs by 40% by outsourcing your customer service.

(Source)

Takeaways

If you have increasing customer service demands, outsourcing to the Philippines can

2. Xero: Information Technology (IT)

Outsourcing To The Philippines - Xero

What This Company Does

Xero is a global software company that provides cloud-based accounting software for small and medium-sized businesses. They support over 2 million subscribers worldwide with tools to manage finances, payroll, and inventory.

Founded in 2006, Xero has grown to over 4,500 employees and operates across more than 180 countries with a reported annual revenue of approximately $1 billion.

What They Outsource & Why

As Xero grew to support over 2 million global subscribers, its primary challenge became scaling IT support efficiently without overwhelming internal teams or escalating costs. They needed rapid, cost-effective talent to handle backend systems, manage cybersecurity, and support infrastructure development. 

They explored outsourcing destinations like India and Brazil but chose the Philippines for its cost-effective IT talent, high English proficiency, and favorable time zone alignment with Western countries.

They outsourced parts of their IT support and back-end development to the Philippines to quickly scale services without overextending their budget.

Results

By outsourcing, Xero saw a 30% cost reduction in IT operations within the first year and a 20% boost in efficiency due to round-the-clock support. Additionally, they achieved a 25% increase in support capacity, which contributed to a 98% uptime rate, ensuring reliable service for users and higher satisfaction ratings globally

Takeaways

If your software company faces rising customer support demands, you can outsource to the Philippines to enjoy the following benefits:

3. Athenahealth: Healthcare Billing & Claims

Outsourcing To The Philippines - athenahealth

What This Company Does

Athenahealth provides cloud-based healthcare services, like medical billing, practice management, and patient engagement solutions. With over 5,000 employees, Athenahealth serves more than 160,000 healthcare providers nationwide and helps them manage operational efficiency.

What They Outsource & Why

Athenahealth’s administrative and billing departments’ operational costs were drastically increasing, especially when managing high-volume billing and claims processing demands. So, they turned to the Philippines to address these challenges while complying with local rules and regulations. 

The country’s skilled healthcare administrative talent came at a cost-effective price, but it offered the same (if not better) healthcare support with training in accurate data handling and patient information privacy.

Results

This decision led to a 30% reduction in operational costs. The Philippines’ highly trained professionals helped Athenahealth improve billing accuracy and efficiency, while also ensuring compliance with U.S. healthcare regulations like HIPAA.

Takeaways

If you own a business in a regulated industry like healthcare, you can turn to the Philippines for:

4. Square: Financial Operations

Outsourcing To The Philippines - Square

What This Company Does

Square is a financial services and mobile payment business headquartered in San Francisco, California. They have a suite of tools for businesses, like point-of-sale systems, payment processing solutions, and financial services, serving millions of small and medium-sized businesses globally.

As of 2023, Square generated $2.0 billion in revenue for Q3, with a gross profit of $899 million. It employs approximately 6,800 people globally and continues to expand its offerings, including loans, with $15.1 billion in total loans in 2022.

What They Outsource & Why

They had extensive financial operations and needed support for their rapid growth. Square outsourced the management of its financial services, including customer loans and payment processing operations. This was crucial as they expanded their product offerings, including Square Capital, which provides financing solutions to small businesses

Results

Through outsourcing, Square handled millions of loans and processed billions in transactions. For example, in 2022, Square helped extend loans to more than 58% of women-owned businesses and 35% of minority-owned businesses, far exceeding the figures of traditional financial services​

Takeaways

If you’re in the financial technology sector, you can outsource finance and accounting roles to the Philippines for substantial benefits, including: 

5. BambooHR: Human Resources (Customer Services)

Outsourcing To The Philippines - BombooHR

What This Company Does

BambooHR has a cloud-based HR software tailored to small and medium businesses. Founded in 2008, it has grown to around 1,500 employees and serves over 30,000 clients worldwide. With an estimated annual revenue ranging from $100 to $500 million, BambooHR focuses on tools that support efficient hiring, onboarding, payroll, and overall workforce management

What They Outsource & Why

BambooHR faced rising customer support demands and extended response times when it expanded. This left 30% of their customer inquiries unresolved within 24 hours. So, they chose the Philippines for its skilled, cost-effective HR support talent to outsource human resources tasks, like customer support and onboarding services, to the Philippines.

Results

Outsourcing helped BambooHR reduce response times by 50%, addressing 90% of customer issues within 24 hours. This led to a measurable improvement in customer satisfaction, helping them maintain their service quality without having to expand their internal team.

Takeaways

If your HR SaaS business faces growing customer needs, you can outsource to the Philippines to:

6. Buffer: HR & Payroll

Outsourcing To The Philippines - Buffer

What This Company Does

Buffer is a privately held company based in San Francisco, California, and it was founded in 2010. It employs approximately 198 individuals and reported an annual revenue of $18 million in 2022. The company has raised $9.1 million in funding over multiple rounds. 

Buffer serves over 140,000 users, including small businesses, publishers, media houses, and marketing agencies. It focuses on marketing technology, SaaS, and artificial intelligence. The tool helps businesses:

What They Outsource & Why

As Buffer expanded, their employee base grew from a small team to over 100 employees in a short period. Managing HR internally became increasingly complex and time-consuming. Buffer needed to scale operations quickly without overburdening their team. 

Plus, Buffer operates across various regions, each with different payroll and employment laws. Compliance with these regulations, especially around tax laws and employee benefits, became a significant challenge.

Results

By outsourcing HR and payroll, Buffer reduced its internal HR management costs by about 30%, reallocating those savings to product development and marketing. Plus, they could scale their operations smoothly, adding over 50 new employees within a year without expanding their internal HR department.

Takeaways

If you have increasing HR & payroll needs, the Philippines has cost-effective access to skilled professionals who can:

7. BigCommerce: Accounting & Bookkeeping

Outsourcing To The Philippines - BigCommerce

What This Company Does

BigCommerce is a cloud-based SaaS platform that helps businesses launch and manage e-commerce stores. Founded in 2009 and headquartered in Austin, Texas, it employs over 1,300 people​ and operates across multiple global markets, including North America, Europe, the Middle East, and Asia-Pacific.

What They Outsource & Why

As BigCommerce grew rapidly, its financial operations became more complex. Handling accounting in-house with an expanding team and increasing transaction volume was time-consuming and prone to errors. The company faced difficulties in keeping up with the growing volume of bookkeeping entries and maintaining accurate financial reporting.

Results

Outsourcing accounting functions allowed BigCommerce to save 40% of the time previously spent on bookkeeping and financial tasks. Plus, they saved approximately 25% in accounting costs compared to maintaining an in-house team.

Takeaways

Outsource bookkeeping and accounting to the Philippines if you want to:

8. Toon Boom: Training & Development

Outsourcing To The Philippines - Toon Boom

What This Company Does

Toon Boom was founded in 1994 and is headquartered in Montreal. It is known globally for its industry-standard tools, like Toon Boom Harmony and Toon Boom Storyboard Pro, used for 2D animation and storyboarding. The company serves major entertainment clients, including Walt Disney Animation, Warner Bros., Rovio Entertainment, and Universal Studios. 

???? Fun Fact!

Toon Boom has an estimated annual revenue of $31.3 million, with 196 employees. The company has seen steady growth and has expanded its workforce by about 9% last year.

(Source)

What They Outsource & Why

As Toon Boom’s product offers grew in complexity, so did the demand for high-level technical training on their software. They faced challenges in scaling internal training while maintaining the quality and depth of training required to meet the needs of a global, diverse user base. The increasing demand for customized learning solutions from animation professionals worldwide made it impractical to handle solely in-house.

Results

Toon Boom expanded its reach globally by outsourcing these training programs to industry experts and creating scalable, online training courses. It ensured more efficient learning for studios, freelancers, and educational institutions, resulting in a 30% increase in customer satisfaction rates.

Takeaways

Outsourcing training and development to the Philippines can:

8 Advantages Of Outsourcing In The Philippines

Review these benefits and see if they will help you streamline your overall business operations and improve customer service according to your growth goals.

Outsourcing To The Philippines - Advantages

I. Skilled Professionals In Customer Service & Technical Support

The Philippines is known for its skilled workforce in customer service, business process outsourcing, and technical support. Filipino professionals are technically proficient and excel in:

This makes them perfect for customer-facing roles. So, if you run a business that prioritizes customer interactions, you can hire professionals with these qualities to improve customer loyalty and satisfaction.

Genius makes the most of this by carefully selecting Filipino professionals who are adept at problem-solving and skilled at creating positive, human experiences for customers. You get a team that seamlessly fits into Western service standards and helps you give your customers an experience that feels like an extension of your in-house support team.

II. Lower Costs Without Sacrificing Quality

You can reduce your labor costs by 70% without sacrificing your quality compared to domestic staff. Plus, if you compare the Philippines with other popular outsourcing destinations, like India, Vietnam, and Mexico, you will find more competitive rates with similar or even higher quality standards.

For example, a customer service agent in the Philippines costs around $6/hour, while the same role costs $7-$9/hour in India, $8-$10/hour in Vietnam, and $12-$14/hour in Mexico.

At Genius, we help you access this top-tier talent at 80% less cost compared to hiring someone in the US. Our pricing structure is transparent, with a one-time fee, which makes budget planning easier and reduces overhead expenses.

III. Strong English Fluency & Neutral Accents

The Philippines has one of the highest English proficiency rates in Asia, and it ranks 2nd in East and Southeast Asia. Combine this proficiency with their neutral accent, and you will see that Filipino professionals can seamlessly communicate with your English-speaking customers.

This ease of communication eliminates language barriers and gives you more efficient customer service and technical support.

Genius takes advantage of this and selects candidates who excel in English communication and know how to engage with Western customers. We rigorously vet our candidates for different communication attributes and only the top 1% of the candidates make the final cut. This smooth communication can help you improve your overall customer experience and satisfaction.

IV. High Adaptability To Western Work Culture

Filipino workers are highly adaptable to Western culture because of their cultural compatibility and extensive exposure to Western media and practices. This means that Filipino workers can easily understand and align with Western customer expectations, which makes it easier to integrate them into US-based teams.

Genius prioritizes this cultural alignment in its hiring process and ensures that the selected candidates can quickly adapt and contribute effectively. So, you can build a cohesive team dynamic and transition to remote support without any roadblocks.

V. Specialized Talent For IT, Finance & Healthcare Industries

This region offers a wealth of specialized talent in sectors like I.T., finance, and healthcare. Filipino workers have adequate training institutions and certifications in these fields to meet industry-specific demands for:

This makes the Philippines a reliable outsourcing destination if you need specialized roles.

Genius goes beyond traditional recruitment by tapping into highly specialized databases of certified professionals in the IT, finance, and healthcare sectors. Our on-the-ground sourcing network and partnership with local academic institutions ensure access to candidates who are top performers in niche fields and actively participate in industry-specific research.

VI. Willingness To Work Night Shifts To Match U.S. Hours

Filipino teams are accustomed to working night shifts to accommodate time zone differences with Western countries. Their willingness to work outside regular hours lets you offer 24/7 support, which is essential for customer satisfaction and responsiveness.

Genius ensures candidates are a perfect match for night-shift roles through a multi-step screening process. First, during the application stage, we ask candidates about their comfort with working U.S. hours, so that they’re aware of the time-zone shift and can commit. 

During interviews, we assess their readiness for night shifts by discussing past experiences and evaluating their adaptability to irregular hours. Plus, we use psychometric testing to gauge the candidate’s ability to maintain productivity and well-being during off-hours.

VII. Tax Incentives & Support From The Government For The Philippine BPO Industry

The Philippine government actively supports the BPO industry with tax incentives and favorable business policies. Programs under the Philippine Economic Zone Authority (PEZA) give tax breaks to companies that operate in designated economic zones, which reduces operational expenses for foreign investors and companies. As a result, they can offer better rates to compete globally. 

Genius takes full advantage of the Philippine government’s tax incentives by focusing on hiring from PEZA-approved zones, which reduces overhead costs. We pass this cost advantage on to our customers by offering competitive rates while maintaining top-tier talent.

VIII. Expanding Tech Infrastructure In Key Outsourcing Cities

Cities like Manila, Cebu, and Davao have advanced technological infrastructures, like high-speed internet and state-of-the-art office spaces. These developments make it easier for you to maintain high operational standards while outsourcing to the Philippines.

Genius maximizes these technological advancements by ensuring candidates are fully equipped. We also ensure that candidates are familiar with the latest tech tools needed for the job. This means you will get candidates who can hit the ground running with minimal tech setup hassles.

2 Disadvantages Of Outsourcing In The Philippines

Review the following to see how business process outsourcing may impact your overall goals and how you can address them.

Outsourcing To The Philippines - Disadvantages

A. Time Zone Differences Affect Real-Time Collaboration

The Philippines is in a different time zone than most Western countries, usually 12-14 hours ahead or behind depending on where you’re based. This creates a disconnect for real-time collaboration. 

When your team is waking up, your outsourced team is winding down, making it hard to sync schedules and hold immediate meetings. If urgent decisions need to be made, the delay can be frustrating and slow down progress.

Here’s how to tackle this:

B. Lack Of Protocols Can Increase Data Security Risks

When outsourcing, particularly in a different country, it can be difficult to ensure that your external team follows the same protocols and standards that your in-house team adheres to. Without a well-defined structure, security risks can arise, like data breaches or misuse of confidential information. 

The absence of standardized practices can leave your business vulnerable to cyber threats, particularly if the team isn’t as vigilant or trained in the security measures you expect.

Here’s how you can overcome this challenge:

What You Can Outsource In The Philippines’ Outsourcing Industry

Make a list of the tasks you want to outsource and review the following unique strengths of Filipino professionals to see how well they align with your goals.

Outsourcing To The Philippines - Jobs To Outsource

1. Customer Service

Filipinos are known for their strong customer service skills, adaptability, and alignment with Western work culture. Their natural empathy and communication abilities make them well-suited for customer-facing roles.

Tasks/Roles To Outsource:

2. Information Technology (IT)

The Philippines has a growing pool of skilled IT professionals, which makes it an ideal outsourcing destination for technology-driven tasks like troubleshooting and advanced software development.

Tasks/Roles To Outsource:

3. Healthcare

Outsourcing companies in the Philippines have professionals with medical training and high English proficiency who can easily handle outsourcing tasks, especially in non-clinical roles.

Tasks/Roles To Outsource:

4. Finance & Accounting

Finance and accounting outsourcing companies give you access to knowledgeable professionals who can handle complex financial tasks at a fraction of the cost of hiring in-house.

Tasks/Roles To Outsource:

5. Human Resources (HR)

HR specialists in the Philippines can help you streamline your HR functions, from recruitment to employee relations. This will free up your resources and help you focus on strategic growth instead of administrative tasks.

Tasks/Roles To Outsource:

6. Digital Marketing

Filipino outsourcing companies have access to digital marketers who have vast experience in digital media and an understanding of Western market trends. These professionals have a proven track record of helping brands strengthen their online presence.

Tasks/Roles To Outsource:

7. eCommerce

The Philippines has a thriving eCommerce industry. So, the professionals there are skilled in managing online sales platforms, order processing, and customer interactions that drive economic growth through digital sales.

Tasks/Roles To Outsource:

8. Animation & Design

The region has a growing and diverse talent pool in animation and design, driven by both local demand and Western media collaborations. This makes it a hub for creative outsourcing.

Tasks/Roles To Outsource:

Why Partner With Outsourcing Companies Like Genius

You need to choose a partner that understands the local market and can give you access to top-tier talent. This is where Genius comes in.

Outsourcing To The Philippines - Genius

We can help you tap into the Philippines’ skilled workforce and streamline the hiring process to make it as seamless as possible. Plus, we hire only the top 1% of talent, which means you are connected to professionals who are qualified and are a strong fit for your company culture and specific role requirements.

Here are more perks of working with Genius:

So, if you’re new to the business process outsourcing industry and want a reliable partner to navigate the process, Genius gives you a straightforward and cost-effective way to build a high-performing team in the Philippines.

Conclusion

Start outsourcing to the Philippines with just 1 or 2 roles, like customer service or basic IT support, to get a feel for its benefits without overwhelming your existing structure.

Expand your outsourcing efforts to include specialized tasks like finance management or digital marketing once your business starts to grow.

Genius makes it straightforward and efficient for you to find skilled talent in the Philippines. We source only the top 1% of candidates, give you a 1-time pricing model, and offer a 6-month talent guarantee to make the process as peaceful as possible.

Start hiring with Genius today and find the talent that can help you drive your business forward.

FAQs

What types of tasks are commonly outsourced to the Philippines?

The Philippines is best known for its strengths in customer service, IT support, healthcare, finance, HR, digital marketing, eCommerce, and creative fields like animation. You can outsource these tasks to leverage cost savings and high-quality service.

How much can I save by outsourcing to the Philippines?

You can reduce your labor costs by 70% compared to hiring locally. This cost-effectiveness will give you access to skilled talent without the high expenses associated with in-house roles.

What challenges will I face when outsourcing to the Philippines?

You may face challenges like time zone differences, internet reliability in some areas, and cultural compatibility issues. However, if you partner with an experienced provider like Genius, you can easily avoid these risks.

Why is the Philippines a popular outsourcing destination?

The Philippines has cost-effective labor, a large English-speaking workforce, and a culture that aligns with Western values. Plus, the Philippine government supports the BPO industry, and they have a robust infrastructure that makes it an ideal choice for you, regardless of where you are.

How do I choose the right outsourcing partner in the Philippines?

Look for proven expertise, transparent pricing, and a rigorous hiring process when you choose an outsourcing partner in the Philippines. For example, Genius gives you access to the top 1% of talent and a comprehensive vetting process to make sure you get skilled professionals who fit your business needs.

Leave a Reply

Your email address will not be published. Required fields are marked *

Comment policy: We love comments and appreciate the time that readers spend to share ideas and give feedback. However, all comments are manually moderated and those deemed to be spam or solely promotional will be deleted.

By submitting this form: You agree to the processing of the submitted personal data in accordance with Genius Privacy Policy, including the transfer of data to the United States.