Philippines: Strong performance in key areas

Suitable and abundant talent

Considerable pool of generalist and specialist talent
Strong English skills, both verbal and written

Quality infrastructure

World-class telecommunications
Abundant and low-cost real-estate in major urban areas

Conducive business environment

Competitive incentives (e.g., income tax holiday)
Specialized programs addressing near-term issues (e.g., “near-hire” voucher program)
Local governments and national government supportive
Early strategic planning by DTI catalyzed industry

Operational performance

Among the lowest in labor costs
Genuine global reputation in voice with multiple signature locators

Source: Business Processing Association of the Philippines (BPAP). 2007.
Offshoring and Outsourcing Philippines: Roadmap 2010. BPAP: Manila.

Why Philippines?

Within a short span of time, the Philippines has established itself as one of the top destinations globally for offshoring and outsourcing (O&O) operations. From less than USD100 million in total revenues in 2001, the Philippines increased O&O revenues to USD3.3 billion in 2006, effectively doubling every year. This high rate of growth has persisted even as the industry has grown beyond its initially low base. Between 2004 and 2006, the industry grew 49 percent per year. As a result of this growth, the Philippines is now the Southeast Asia market leader and, along with India and China, one of the top countries providing O&O services globally.

The Philippines has been able to achieve rapid growth in O&O as a result of several intrinsic strengths in its labor market, infrastructure, and business environment. The industry has also benefited from targeted efforts to develop it by the government and industry players, including the early stewardship as far back as 2000 by the then Department of Trade and Industry (DTI) Secretary Mar Roxas.


Foremost among the intrinsic strengths that have drawn O&O to the Philippines is a sizable and skilled labor force. The nation produces nearly 500,000 college graduates per year across a range of disciplines that align well with the O&O industry. Nearly 150,000 graduate from business-related programs, while another 100,000 are from engineering or information technology (IT) programs. The Philippines is also one of the few countries that can boast a large number of English-speaking college graduates each year.

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