Lower Cost Structure
Labor costs in the U.S. are projected to increase by 3.4% annually, eating into margins for American businesses. Meanwhile, the cost of the average call center worker in the Philippines is only $7,000-$12,000 versus $38,000-$52,000 in the U.S – a staggering 50-70% cost reduction driven by the Peso’s weakness against the dollar. This substantial gap in wage costs means Philippine outsourcing partners can deliver the same functions at a far lower cost to your business. For example, IBM saved over $500 million annually through outsourcing to the Philippines, demonstrating the magnitude of potential cost savings.Abundant English-speaking Talent and Skills in Virtual Assistant and Call Center Work
The Philippines produces over 2.4 million college graduates yearly, including 800,000 in business and IT-related fields. With 107 million fluent English speakers and over 6% unemployment, the country sustains a large outsourcing industry that employs over 1 million workers. This includes hundreds of thousands of virtual assistants and call center agents skilled at outsourced work. This abundant pool of skilled, English-speaking talent addresses constraints that constrain growth for American businesses. Preferences for native English capabilities make the Philippines an attractive outsourcing destination for U.S. companies seeking cost-effective solutions while maintaining language and cultural alignment.High-quality Work Standards
Filipino call centers have an average customer satisfaction rating of 4.5 out of 5 stars, demonstrating aptitude for customer service and attention to detail. The country ranks #2 for most competent outsourcing staff according to Atradius, underscoring its reputation for delivering work that meets rigorous international standards. This strong track record serving multinational clients gives American businesses confidence that outsourcing key functions to the Philippines will yield outputs comparable or superior to in-house teams at a fraction of the cost. The familiarity with U.S. business practices further ensures cultural fit.Government Support
The Philippine government actively works to attract offshore business from American companies. It has invested heavily in special economic zones that provide tax incentives, grants and infrastructure targeting outsourcing firms. It has passed legislation simplifying the setup process for foreign businesses. This type of pro-business environment allows outsourcing companies, especially those from the U.S., to establish and scale their operations quickly – helping reduce time-to-value. It has contributed significantly to the rapid growth of the Philippines’ outsourcing industry. In conclusion, Philippine outsourcing presents a compelling solution for addressing cost pressures and talent shortages challenging American businesses. With substantial cost savings, availability of skilled native English-speaking talent and a reputation for delivering high-quality outputs, the Philippines offers American companies an opportunity to gain a competitive edge.
Rocky Chan is a lawyer and business consultant who excels in corporate formation, immigration procedures, and client relations. In the last 7 years, he honed his craft in the field of foreign investment consultancy.
