Nowadays, big companies and top brands outsource some aspects of their operations to third-party vendors to scale their businesses and expand their global reach. Even small and mid-sized enterprises (SMEs) employ offshore outsourcing to reduce costs and focus on their core functions.
Enter offshoring providers in the Philippines. These companies offer several advantages due to the country’s lower costs, skilled workforce, and supportive government. Consider following in the footsteps of some of the world’s top brands and capitalizing on the Philippine outsourcing industry.
This article explores some examples of top companies that outsource to the Philippines.
A Quick Look at the Philippine Outsourcing Industry
Outsourcing to the Philippines proves beneficial to businesses of all sizes. The country’s business process outsourcing (BPO) industry has come a long way since its humble beginnings in 1992. The Philippines now has over 700 outsourcing companies.
The country’s information technology and business process management (IT-BPM) industry contributes 7.5% of the country’s gross domestic product (GDP), generating $29.5 billion in revenue. This sector also created 1.44 million jobs in 2021, making it the biggest job generator in the country. Recently, the industry has expanded its reach to the provinces, comprising up to 30% of the workforce.
Known as the world’s BPO capital, the Philippines has a proven track record in the outsourcing industry. The country caters to companies from top nations such as the U.S., Canada, Europe, and Australia. Its IT-BPM industry will continue to prosper, making it a top choice for companies looking to capitalize on offshore outsourcing.
In the next section, let us look at a few examples of companies outsourcing to the Philippines.
Leading Companies Outsourcing to the Philippines
Amazon: E-commerce
Amazon Inc. is a global leader in e-commerce, cloud computing, and artificial intelligence. It is renowned for its massive online marketplace, Amazon Web Services (AWS), and its customer-centric approach to business.
How They Benefit from BPO Services
Amazon has been outsourcing customer service and data entry operations to Filipino BPO firms for years. By leveraging the country’s vast talent pool, Amazon ensures round-the-clock customer support and back-end processing at lower costs.
How They Outsource to the Philippines
Amazon outsources key functions like customer support, data management, and IT services to BPO companies in the Philippines. The country’s high English proficiency and skilled workforce allow Amazon to maintain its service quality worldwide.
American Express (AmEx): Banking and Finance
American Express is a multinational financial services corporation known for its credit card, travel, and business solutions.
How They Benefit from BPO Services
AmEx relies on Philippine-based call centers for customer service, billing, and fraud detection, allowing them to provide high-quality financial support to clients worldwide.
How They Outsource to the Philippines
AmEx partners with BPO firms specializing in financial services to handle customer inquiries, credit card fraud detection, and transaction processing, ensuring efficient and secure financial operations.
Google: Technology
Google is a multinational technology company specializing in internet-related services, including search engines, advertising, and cloud computing.
How They Benefit from BPO Services
Google has established an offshore center in the Philippines for IT support and customer service. The company also partners with Filipino developers to develop software solutions.
How They Outsource to the Philippines
Google outsources technical support, software development, and data analysis to highly skilled Filipino professionals, leveraging the country’s tech expertise and cost advantages.
Facebook: Social Media
Facebook, now under the parent company Meta, is a leading social media platform connecting billions of users worldwide.
How They Benefit from BPO Services
Facebook outsources content moderation, customer support, and IT services to BPO providers in the Philippines, ensuring compliance with community standards.
How They Outsource to the Philippines
Meta contracts Philippine-based outsourcing firms to handle user reports, enforce community guidelines, and use AI-driven content management to enhance user experience.
IBM: Information Technology
IBM is a global technology and consulting company known for its innovation in cloud computing, AI, and enterprise solutions.
How They Benefit from BPO Services
IBM outsources software development, IT support, and back-office operations, benefiting from the Philippines’ strong IT talent pool.
How They Outsource to the Philippines
IBM collaborates with IT BPO firms for software development, cybersecurity services, and IT infrastructure management to drive global efficiency.
Microsoft: Technology
Microsoft is a global leader in software, cloud computing, and hardware products such as Windows, Office Suite, and Azure.
How They Benefit from BPO Services
Microsoft delegates internal support and software development to Filipino professionals, enhancing their global operations at a fraction of the cost.
How They Outsource to the Philippines
Microsoft employs Filipino IT specialists for customer support, software troubleshooting, and cloud computing services to optimize operations.
Wells Fargo: Banking and Finance
Wells Fargo is a major financial services company providing banking, investment, and mortgage services.
How They Benefit from BPO Services
Wells Fargo outsources customer service, fraud prevention, and financial operations to skilled professionals in the country.
How They Outsource to the Philippines
Due to outsourcing, Wells Fargo has become popular in the Philippine BPO industry. The company outsources both its front- and back-office operations to the country. Customer service representatives, fraud specialists, and billing and collection specialists are some of the roles it outsources to the country.
Why Businesses Choose to Outsource to the Philippines
Outsourcing to the Philippines offers a competitive edge to businesses worldwide. While cost efficiency is a major driving force, there are several other compelling reasons why companies prefer the country for their outsourcing needs.
Cost Savings and Operational Efficiency
Businesses that outsource to the Philippines can reduce labor and operational costs by as much as 60%. The lower cost of living translates into affordable wages without compromising the quality of work. Companies save on office space, infrastructure, and overhead expenses, making outsourcing a financially viable option.
Access to a Skilled and Diverse Workforce
The Philippines boasts a large pool of highly skilled professionals specializing in various industries, including IT, customer service, healthcare, and finance. The country produces thousands of college graduates annually, ensuring a steady supply of talent ready to meet global business demands.
Strong English Proficiency
As one of the world’s largest English-speaking nations, the Philippines ranks high in global English proficiency indexes. This linguistic advantage ensures seamless communication between outsourced employees and international customers, improving overall service quality.
Advanced Technology and Infrastructure
The Philippine government has invested heavily in developing IT and communication infrastructure, allowing businesses to access cutting-edge technology through their outsourcing partners. Digital cities and tech hubs are continually being developed to support the growing BPO industry.
Reliable Work Ethics and Cultural Compatibility
Filipino professionals are known for their dedication, strong work ethic, and customer-friendly attitude. Their adaptability to Western work culture and commitment to high service standards make them invaluable to international businesses.
Government Support and Business-Friendly Policies
The Philippine government actively supports the outsourcing industry by offering incentives, tax breaks, and regulatory measures that create a favorable business environment. The Philippine Economic Zone Authority (PEZA) provides financial perks to businesses operating within designated economic zones.
Continued Growth in the BPO Industry
The Philippine BPO sector continues to expand, with experts predicting sustained growth in the coming years. The industry has evolved from handling simple customer service tasks to offering high-value services such as financial analysis, IT solutions, and healthcare support.
Final Thoughts
Outsourcing to the Philippines has proven to be a strategic move for many global businesses. With cost savings, access to a skilled workforce, a strong English-speaking population, and government-backed incentives, companies can streamline operations while maintaining service quality.
The BPO industry in the Philippines continues to thrive, expanding beyond traditional customer service roles to more specialized services, including IT solutions, finance, healthcare, and e-commerce support. The country’s adaptability to technological advancements and commitment to quality service make it a premier outsourcing destination.
For businesses considering offshore outsourcing, conducting thorough research, identifying specific operational needs, and partnering with reputable providers will be key to maximizing success. The Philippines presents an unparalleled opportunity for companies looking to optimize costs, enhance efficiency, and stay competitive in a globalized business environment.
For more insights into outsourcing opportunities, check out our outsourcing services and see how your business can benefit.
