Philippine Outsourcing Industry

Philippine Outsourcing Industry

Picture of Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

The Philippines outsourcing industry has come a long way in the past years, doing so well to the point of overtaking countries like India to become the country with the most call centers in the world. However, this $23 billion empire has continued to attract competitions from China and many other quick rising nations who know how big the outsourcing business is and how much global demand it has.

Global companies are always in search for the best IT agencies to outsource some of their works to, and Philippines outsourcing companies has managed to remain at the top of the list as a result of their cheap labor, young population, and a high level of English proficiency. Will China take over from them? Or will India return to number one on the list? The competition is fierce, and anyone that’s not up and doing will most probably be left behind.

Even though the outsourcing company is booming in the Philippines, there is no assurance that it will remain that way in the next few years. According to the Chief delivery officer of Sutherland Global services, an excellent command of spoken English is not good enough to keeps thing the way they are at the moment. There are many other countries with high level of English proficiency, and a lot of them are already trying to make their ways to the top in the outsourcing industry.

In additions to competitions, the Philippine outsourcing industry is worried that the rise of artificial intelligence might eat into the $23 billion allocation which has been mostly allocated to the outsourcing industry till recently. This is a big reason to worry as technology has continued to grow stronger and smarter in this present age. There is no doubt that there are already software applications replacing human beings in some areas of customer service .

Competitions and artificial intelligence are not all the factors eating into the Philippians outsourcing industry, there is also the government’s plan to reduce some tax incentives. So far, this industry has been enjoying preferential tax rates on salaries of some executives in the outsourcing companies against the wish of the Philippines finance department. The finance department has made plans to submit bills to the lawmakers to remove this preferential tax rates.

In order to avoid being overthroned, the Philippines outsourcing company will have to fight a good fight of hard work; improvement in all aspect of required services, and find better ways to serve their clients better.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

2 thoughts on “Philippine Outsourcing Industry”

  1. Good post. I learn something totally new and challenging on blogs I stumbleupon every day. It will always be interesting to read articles from other authors and practice a little something from their sites.


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