Exploring Business Excellence: Why Outsourcing in the Philippines Is a Smart Choice

Business Process Outsourcing has been an integral part of many international businesses, specially from the western countries. In the Philippines, it is continuing to evolve for almost three decades now. One of the many reasons that made the Philippines a main outsourcing destination is the cost.

In a business environment people are always asked their biggest reason for doing what they do. In our effort to help you understand how the Philippines is a cost efficient outsourcing destination, today, we will try to answer your W-H-Y.

W - What kind of savings are we talking about?


  • Labor cost in the Philippines is generally lower than most Western countries.
  • You can avoid overhead expenses by saving on office space, equipment, utilities and employee benefits.
  • You minimize the costs from talent acquisition, all the way to training and retention.


  • The Philippines offers access to a wide pool of skilled professionals who can handle various tasks, from HR and training to payroll and accounting, streamlining your operations and saving you time.


  • There is an abundance of managerial roles available in the Philippines, allowing you to delegate and manage your business with less effort.
  • Project Managers and Operations Managers can help bridge the gap between your organization and the outsourcing team, ensuring smooth workflow.

H - How does a Filipino spend and what is the expected wage in the Philippines

The Philippines boasts of a low-cost-of-living that makes it a cost efficient outsourcing hub, not only that, it is also a destination for many tourists and retirees. Let’s look at this table below.

Bonus: Because of The Filipino’s close family ties, renting is sometimes not a problem anymore. Many families would rather build one big space for everyone than rent a place separately. They then share utilities and food expenses. Leisure expenses, like any country, vary based on an individual’s lifestyle.

In terms of minimum wage or the lowest hourly rate that employers are legally required to pay their employees. In the United States, the federal minimum wage is $7.25 per hour in general. Except for some states that have implemented their own wage law.

In 2023, the minimum wage in the Philippines was reported to have increased to 12.24 thousand Philippine pesos per month. Even with the increase, if we break it down, that is equivalent to Php 76.5 per hour or $1.35.

Y - Your business excellence

With money, time and effort cut to minimum, you can focus on more efforts to grow your business.

Spend on business growth

  • The cost savings achieved through outsourcing can be reinvested in business growth, including acquisitions or expanding your operations.

Spend on People Growth

  • Funds can be allocated to upskilling your workforce to enhance their value.
  • You can help boost your people and promote retention through bonuses, incentives, etc.

Spend for yourself and your own growth

  • With more time on your hands, you can focus on your own health. Take your family on vacations, go to the gym. Do yoga! Grab drinks with peers. Live!

Additionally, a harmonious balance between work and personal life is very important in this fast-paced life. Both you and your manpower can have both.

With the emergence of the remote or hybrid set-up after the pandemic, it has become a consideration for a Filipino when applying for a job. Having the freedom to do their job while they spend time with loved ones or pursuing personal interests and hobbies. In a study, the majority of the Filipino workforce are willing to forgo pay rise and/or promotion for better work-life balance, overall well-being, and happiness.

Looking Ahead

In summary, outsourcing in the Philippines offers significant cost savings, access to skilled professionals, and the opportunity to invest in business growth and personal development, making it a compelling choice for businesses looking to optimize their operations and achieve excellence.

In case you missed the first parts of this 12-part series story called “Discover the Philippines: Your Gateway to Business Outsourcing Excellence!”

  1. Exploring the Philippines: A Thriving Hub for Business Outsourcing
  2. Exploring the Filipino-American Connection: A Celebration of Talent and Partnership

In the fourth edition, we will unveil the Philippines' English Proficiency and multilingual competencies – the primary requirement that made the Philippines hit the spot for Call Center Capital of the world.


Statista Research Department (2023). Statista. Available at: https://www.statista.com/statistics/1406870/philippines-minimum-wage/. Accessed: September 2023

Page (2023). Cision PR Newswire. Available at: https://en.prnasia.com/releases/apac/73-of-philippines-employees-willing-to-forgo-higher-salaries-or-job-promotions-for-work-life-balance-michael-page-367181.shtml. Accessed: September 2023

Coursera (2023). Work-Life Balance: What It Is and 5 Ways to Improve Yours. Available at: https://www.coursera.org/articles/work-life-balance. Accessed: September 2023

https://account-master.com/filipino-values/. Accessed: September 2023

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