For U.S. companies planning to outsource customer support, choosing the right location is crucial. By choosing the right outsourcing location, U.S. companies can significantly reduce operational costs and improve work quality. The Philippines and Latin America consistently rank as the top providers of customer service support solutions. U.S. companies must carefully weigh the reasons why they would outsource customer support to the Philippines or Latin America to make the right decision.
Where to Outsource Customer Support: Philippines or Latin America?
The Philippines is consistently a top location to outsource customer support because of impressive English proficiency and cultural compatibility with Western countries. According to the Ataraxis Global Outsourcing Talent Index, the Philippines is the top country for outsourcing in 2026 based on labor cost, English proficiency, talent availability, digital infrastructure, and stability. On the other hand, Latin America is an excellent location to outsource customer support because it provides time zone alignment, cultural compatibility, and lower labor costs than North America.
*All infographics created by Nicole Baleros
The Philippines vs. Latin America: Time Zone Alignment Comparison
Latin America has the edge over the Philippines for time zone alignment with the U.S. Latin America operates on a nearshore schedule, with only a 0- to 5-hour time difference from the U.S. In contrast, the Philippines is 12 to 15 hours ahead of the U.S., making graveyard shifts a crucial factor in deciding to outsource customer support here.
The Philippines vs. Latin America: Language Proficiency Comparison
The Philippines has higher English proficiency than Latin American countries. On the other hand, Latin American countries have the edge over the Philippines in Spanish or Portuguese bilingualism.
The Philippines vs. Latin America: Cost Gap Comparison
The Philippines offers a more substantial cost reduction for U.S. outsourcing than Latin America. However, both offer significant savings as compared to hiring within the U.S. The Philippines and Latin America can both offer similar 40 to 60% savings versus the equivalent U.S. salary.
The Philippines vs. Latin America: Labor Depth Comparison
The Philippines has a deeper and more experienced talent pool, making it a perfect location to outsource customer support. Many Filipinos are experts in customer support and back-office tasks that require English fluency. The Philippine active labor force is about 52.13 million individuals aged 15 and over. On the other hand, Latin America has deeper labor pools for bilingual capabilities (Spanish/Portuguese) and localized software engineering.
The Philippines vs. Latin America: Attrition Comparison
According to the International Economic Association, around 24% to 44% of workers in major Latin American countries resign or move to other jobs annually. In the Philippines, PITION-Global says that BPO companies average 30% to 45% yearly attrition.
When Nearshore Is the Better Option for U.S. Customer Support
Nearshore is the better option to outsource customer support if the priority is to achieve real-time collaboration and cultural alignment within the same time zone.
Key Takeaways
The Philippines is consistently a top location to outsource customer support because of impressive English proficiency and cultural compatibility with Western countries. On the other hand, Latin America is an excellent location to outsource customer support because it provides time zone alignment, cultural compatibility, and lower labor costs than North America.
Interested in Customer Support Outsourcing Services?
Magellan Solutions provides inbound and outbound call center services and business process outsourcing in the Philippines. We have extensive experience providing best-in-class outsourced solutions to small and medium-sized enterprises (SMEs) and large global enterprises. We are a generalist BPO company that applies a process-improvement mindset to our clients’ outsourcing processes.
