In the latest 2023 Kearney Global Services Location Index, the Philippines ranked 12th and still maintained its reputation as the business process outsourcing hub in Asia. Outsourcing IT to the Philippines remains top-of-mind among global brands, especially among US companies looking to expand their services and visibility in Asia. 
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The Philippines continues its upward trend as $715.50m is projected to be its contribution to the 2024 market revenue from IT outsourcing, showcasing a growth rate of 15.57% compared to last year.

To address the growing need to provide artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) services for customer support, the country’s Technical Education and Skills Development Authority (TESDA) proactively offers training, such as online learning programs and Massive Open Online Courses (MOOCs), to help Filipinos upskill accordingly. These courses are offered for free to help bridge the gap between tech jobs and employees as the digital age continues to evolve job roles. 
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Other government agencies, such as the Department of Science and Technology (DOST) also occasionally pitch in to help bridge the tech manpower gap by partnering with other online MOOCs, like Coursera, to provide free courses to qualified Filipinos. 
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To help give you an idea about how vast IT outsourcing is in the Philippines, here are some of the biggest companies in the US that have chosen to outsource IT to the Philippines as part of their global business strategy. 
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Google

In 2017, Google finally decided to open its first Manila office in the Philippines at the Bonifacio Global City, Taguig. Just a year later, another office was created across the first location. These offshore hubs address the local market and also provide services to Google worldwide. As such, Google is now providing development and support services from the Philippines ranging from customer services to product management and development.
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Google has also partnered with other outsourcing companies in the Philippines to provide additional customer support roles for their portfolio of app services. These outsourcing partners also provide back-office support services for other Google offices worldwide. 
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Amazon

Back in 2018, e-commerce giant Amazon opened its first customer services office in Cebu, fueled by the BPO growth in the Philippines. The office catered to their US and UK clients through a team of customer service associates, team managers, and group managers. Fast forward to 2022, Amazon also decided to outsource its information technology (IT) development to the Philippines along with other back-office support services to a growing hub of customer support services located in Manila. 
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Facebook (under Meta)

As a content platform considered to be the most popular in the Philippines to date, Facebook has partnered with several local outsourcing companies to address its content moderation processes. In line with this, IT support services have also been outsourced locally to support the platform’s customer services initiatives and to ensure content moderation is being done in accordance with Facebook’s global guidelines.
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American Express

Perhaps one of the oldest US companies to have invested in Philippine outsourcing is American Express, also more popularly known as AMEX. They are among the pioneers who fueled the country's BPO growth. What started as customer services under the credit and collection department eventually grew to back-office services involving finance and IT outsourcing. 
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PayPal

PayPal is among the top US companies that recognized the Philippines as a strategic location for outsourcing its operations. They have initially tapped outsourcing partners in Alabang, Metro Manila, to help provide customer support services to their clients using a multi-channel approach: email and chat support. Inevitably, the company also outsourced its IT functions to the Philippines to ensure seamless multi-channel customer services. 

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Why IT Outsourcing from the US Gained Traction in the Philippines

High English Language Proficiency

Long before IT outsourcing became popular in the Philippines, the country had already made a name for itself in outsourcing via customer support services. That job role made BPO a household name in the country. Filipinos, regardless of their hometown, are capable of communicating in English. US companies looking to outsource in the Philippines have many options regarding location as they don’t have to worry about where to hire their needed workforce. Cebu and Davao, among others, are equally competitive in providing outsourced talent compared to those based in Manila. 

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In the 2023 English proficiency survey conducted by the Social Weather Stations (SWS), data showed that Filipino adults’ spoken and written English literacy rate is at a notable high of 80%. What’s even more encouraging is that 47% of the Filipinos surveyed nationwide showed an ability to think in English. According to the SWS, these results showed an uptick in English language usage among Filipinos compared to previous years.
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Establishment of Economic Zones

The Philippine government has established the Philippine Economic Zone Authority (PEZA) to oversee the creation of economic zones whose primary purpose is establishing trade relationships with industrialized countries. These economic zones are pre-identified areas in the Philippines that operate under special economic and trade policies.

Due to their investor-friendly setup, these zones are meant to attract foreign investors to establish a local presence and provide jobs locally. These economic zones are spread throughout the country and to date, they include 297 information technology parks and centers that can accommodate outsourcing IT to the Philippines.

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Time Zone Difference as an Advantage

IT services are a crucial part of an enterprise, especially if the company has office locations worldwide. Support needs to be provided 24/7, and US headquarters can manage this and shift schedules much more easily in offshore locations such as the Philippines. 
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Since its boom, outsourcing has continued to thrive and evolve in the business landscape of the Philippines. From providing customer services, it has become a strategic business decision you can consider if you want to establish a global footprint. Most of all, it can be done according to your current business capabilities. 
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Interested in scaling your IT functions in the Philippines? Talk to us today to learn more about your latest options in IT outsourcing. 

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