The Philippines is the World's Top Outsourcing Destination, Report Says

The Philippines is the world's top outsourcing destination due to the Southeast Asian nation's notable English proficiency. talent availability, based on the Ataraxis Global Outsourcing Talent Index.

Manila scored 90.65 and is the only market that placed in the top 10 percent globally in those aforementioned metrics.

The US hiring platform Ataraxis assessed 193 countries in the report and classified the Philippines as an "elite sourcing hub" and the "most attractive destination for companies hiring global remote talent.

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A snapshot of the outsourcing report

Above is an easier-to-digest infographic of the index that saw a top 10 rounded out by Malaysia, India, Chile, South Africa, Nigeria, Peru, Indonesia, Argentina, and Romania.

Manila outperformed New Delhi in English proficiency, scoring 90 against 60, as it ranked second in Asia and 28th globally. This puts the country on par with Ireland, Switzerland, and Monaco and ahead of Spain, Brazil, and Mexico. India still has an edge in raw talent depth. with a perfect 100 against the Philippines' 90, though both of them scored identical scores of 96 on labor costs.

The global business process outsourcing market is expected to reach $695.77 billion by 2033, a compound annual growth rate of 9.9 percent from this year.

Manila's outsourcing suitability is second to none, placing it in the top 0.52 percent of all countries.

Despite this, North America commands the largest share of global BPO revenue at 37.4 percent as of last year, but talent is increasingly distributed.

Ataraxis noted that 56 percent of organizations now outsource front-office functions, 46 percent outsource research and development, and 83 percent of small US businesses plan to maintain or to boost their outsourcing expenditures.

Europe's outsourcing competitiveness is constrained due to high labor costs, according to the US hiring platform.

The Philippine Finance Department has said it is banking on Manila's business process outsourcing, semiconductor, and renewable energy industries to deliver on job creation.

“The BPO industry is evolving into higher-value services such as artificial intelligence, data analytics, and information technology-enabled services—opening more opportunities,” according to the agency.

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