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Survey: Filipino-owned Firms not Keen on Outsourcing

by: Sarah Joson

Tuesday, July 15, 2014 |

Data from a survey done by the Bureau of Labor and Employment Statistics (BLES) on 26,253 establishments in the Philippines with 20 or more workers found that firms with foreign partners or are fully-owned by foreigners outsource more  compared to Filipino-owned businesses.

The study, which was conducted in June 2012, also showed that outsourcing a business process to a third party is not popular among the businesses in the Philippines. In fact, only 8.6 percent of survey respondents said they engage in outsourcing, contracting or subcontracting.

Majority of the firms that are outsourcing are from the manufacturing segment at 29.7 percent, followed by wholesale and retail trade and repair of vehicles with a cumulative 21.3 percent. On the other hand, accommodation and food service accounted for 7.8 percent, while electricity, gas, steam, and air conditioning supply represented 6.9 percent.

Outsourcing was also found to be more rampant in companies that have 100 to 199 employees. While there were more establishments that had 20 to 99 workers, the proportion of establishments engaged in off-site outsourcing was higher in firms with 100-199 workers.

Also, firms that take part in exporting goods or services outsource more compared to firms that focus solely on the local market.


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