Offshoring is a natural option if you’re looking to cut costs, boost productivity and quality while maintaining focus on your core business.
But not all countries are equally as good at it – particularly if customer service is important to your business (and your customers).
Fortunately, there’s one offshoring location that stands head and shoulders above the others: the Philippines.

Why the Philippines has become an offshoring leader

The Philippines has fast become a popular offshoring destination, and for good reason – its customer service culture is unbeatable. But before delving into the makings of this culture, here’s a snapshot of the population from an employment perspective:

  1. The Philippines has a very high standard of education with more than 680,000 university graduates every year and a 97.5% literacy rate.
  2. It boasts approximately 92 million English speakers with English is one of its official languages. (Little known fact: the Philippines is actually the third-largest English speaking country in the world!)
  3.  It has a rich pool of talent, with more than 41 million highly trained people in the workforce.
  4.  The cost of labor is up to 70% lower than Australia, the US and Europe, as are the living costs.
  5. It boasts similar technology to Australia and the US and its government invests heavily in infrastructure, especially in the cities. In fact, the Philippines’ IT spending is expected to increase to over $7 billion by 2022.
  6. With no language barrier or real workplace differences, working with Filipinos is almost identical to working with Australians or Americans.

Work ethic and values

Customer-service excellence is not a new phenomenon in the Philippines. Many factors, including ingrained cultural aspects as well as more recent interactions, have helped create a strong service industry that rivals onshore counterparts. These factors include:

A culture of customer service excellence

Hospitality plays an important part in the Philippines’ economy, so its strong customer-centric focus is an entrenched part of the culture. Multinational American and Australian companies have also invested in customer service personnel and training there for years, helping create a highly-skilled pool of talent to choose from.

Loyal, honest and hardworking staff

In addition to their focus on customer service, Filipinos are known for their loyalty and honesty, as well as for holding themselves accountable for their work. They also tend to stay with their employers longer than the average American or Australian employee.


Pakikisama, in its most basic form, means getting along with others. Direct commands are not common in Filipino culture, as they try their best to avoid offending others. Much like the idea of bayanihan (community spirit), pakikisama works off the idea of community and a united goal.  This mentality isn’t only beneficial in the workplace – it also bodes well when talking with customers.

A supportive government

The Philippines is politically very stable, with a government that understands the value of foreign investment and encourages it, with proactive infrastructure investment. Thanks to the government’s support, outsourcing is one of the country’s biggest growth sectors.

Perhaps, most importantly…

Filipinos value the employment and economic benefits that offshoring offers, so they work hard to please their clients. In fact, it is so prized that incentives are offered to help nurture the industry.

The Philippines is making a big impact on the offshoring industry. Not only is it setting higher standards for other offshoring locations to meet, it’s also helping local companies perform at the top of their game.

Want to build a dedicated offshore team?

Since starting in 2006, MicroSourcing has become one of the biggest managed operations providers in the Philippines. With over 4,000 employees, 6 delivery centers and close to 200 clients, we can help you build a dedicated team in the Philippines, regardless of the roles and level of specialization you require. Contact Us today and you’ll have your offshore team up and running in as little as 6 weeks.