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Home | Blog | Top Outsourcing Destinations in the World

Top Outsourcing Destinations in the World

By Magellan Solutions

Updated on June 5, 2024

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Outsourcing is on the rise, and it’s changing the way businesses operate! Imagine a world where 37% of organizations have embraced outsourcing. This is a whopping 270% jump in just four years!

Why this surge, you ask?

Well, it’s all about the triple threat: saving costs (46%), getting specialized skills (40%), and the magic word, scalability (37%).

Where do said businesses outsource? Read on to explore the top outsourcing destinations in the world in 2023!


top outsourcing destinations

1. Philippines

In English Proficiency, the country is among the Top 20 in global rankings and Top 2 in Asia. This country’s high literacy rate makes it one of the most out BPO providers in the world. Another of the greatest assets of offshore teams in the Philippines is their neutral accents. It allows them to adapt to different accents. This means that Filipino call center agents can replicate the natural accent of their assigned region or country. Filipino workers are also known for their customer-centric approach. They naturally have a compassionate vibe and are very patient, which allows them to deal with their clients amicably. Furthermore, the workforce comprises well-educated individuals. This provides a stable hiring pool of talents that BPO companies can use to deliver results to clients. It’s no wonder the Philippines is the World’s BPO Capital as the country. It accounted for the $26 Billion contribution to the country’s GDP in 2019 alone. Some of the top countries that outsource to the Philippines include the U.S.A, Australia, and the UK.


Competitiveness Level: During the COVID-19 Pandemic, the national government implemented a local lockdown, which affected most of the BPO companies located in Metro Manila.

However, the sector still thrives despite the challenges brought by the lockdown. In fact, most outsourcing companies have found new opportunities to provide customer satisfaction, even in the work-from-home setup.

When looking at the top outsourcing companies in the Philippines, it’s clear that they excel in providing high quality services across various industries, including financial services. These companies are known for delivering exceptional customer experiences, ensuring clients receive the best support and solutions. By partnering with these outsourcing firms, businesses can benefit from their expertise and commitment to maintaining high standards, which ultimately enhances customer satisfaction and operational efficiency.


2. India

The country’s global market selling point is its talent pool, which specializes in IT and software development. India ranked first among the Top 50 Digital Nations. Known companies such as Microsoft outsource some of their services to this country.


Competitiveness Level. The BPO sector in India faced severe challenges due to the pandemic. A major hindrance is the need for more bandwidth connectivity. This is highly needed to support the work-from-home setup of employees, especially in rural areas.

Although this may be true, experts claim that India still enjoys the trust of big businesses for its outsourcing needs and is expected to recover. In English Proficiency, India was 35th out of the Top 100 in world rankings and 5th out of 25 countries in Asia.


3. United States

This country usually outsources and not the other way around. However, the US is now an emerging key player in providing outsourcing services. In fact, they are popular in tech support and IT-related services. The US landed in the top 2 in the Top 50 Digital Nations for 2020 of Tholons Report.


Competitiveness Level: US provides top-of-the-line technologies and customer support. Plus its proximity to businesses that avails outsourcing services makes it a top choice. However, they have the highest corporate income tax compared to other countries that offer quality outsourcing solutions. This has become a huge hindrance for most businesses.


4. Brazil

The signing of the Outsourcing Law in 2017 made the country fully utilize the beauty of outsourcing. As a result of this law, it has made outsourcing more accessible. In effect, Brazil proved its competency in IT-support. Brazil was even dubbed as an alternative to India.


Competitiveness Level: The BPO services of the country earned a total revenue of $4.9 Billion in 2018. They’re even considered a rising economic power in Central America. All thanks to their growing market share. Economic reforms and better policies are being implemented in the hopes of maximizing outsourcing opportunities. Tons are opening to improve the service and labor force in the country. Finally, Brazil ranked 59th in world rankings and 12th in Latin America in terms of literacy.



Weighting Your Options: Why Philippines is a Top-Notch Outsourcing Service Provider

The Philippines enjoys a huge share of the global outsourcing industry, which ensures its top place in the yearly world rankings as the go-to country for outsourcing.

Outsourcing in the Philippines is known for its excellent services in customer support, technical assistance, and BPO services.  Global business leaders such as Google, Amazon, Canva, Citi, Wyndham Destinations, AT&T, and many more outsource their business processes to the Philippines.

For what reasons, you ask? Let’s talk about that in the sections below!


Cost-Effective Labor Force

Full tech support, 24/7 customer service, or IT-related troubleshooting? Outsourcing companies in the Philippines can deliver without a hassle.

The best part? It’s at a low cost. With the country’s affordable labor force compared to other countries, its workforce is filled with highly skilled individuals who can compete in the global arena in the outsourcing industry.


Technical Infrastructure

The Philippines is not last in the race for technological advancement. Outsourcing companies are ready to roll out the latest technologies to help businesses grow.


Cultural Compatibility

Once a colonized country, the Philippines is a healthy mix of South Eastern and Western cultures. This means they can relate to these cultures more seamlessly than other outsourcing countries. This enables Filipinos to reach their full potential and deliver the expected results set by the clients.


Progressive And Solid Government Support

The Philippines proved itself to be one of the game changers in the outsourcing industry. The government acknowledges this and is hence, making way to maximize the country’s full potential. Evidence of this is the government’s provision of laddered education related to ICT. Moreover, the Philippine Economic Zone Authority (PEZA) incentivizes BPO companies. BPOs can now leverage fiscal incentives such as VAT zero-rating of local purchases of goods and services. Income Tax Holiday (ITH) for up to six years is also among the many benefits outsourcers can enjoy. Meanwhile, non-fiscal incentives include perks extended to foreign investors and their families.


Outsourcing To One Of The Top Call Centers in the Philippines

The COVID-19 pandemic posed new challenges in the outsourcing industry of the Philippines. However, it also opened new opportunities. Notably, it even highlighted the Filipino resiliency and efficiency. To this day, Filipinos continue to deliver results to growth-hunger businesses.

Magellan Solutions is one of the top outsourcing companies in the Philippines and is a perfect example of such a top-tier outsourcing service. With 14 years of industry expertise, we’ve assisted businesses from SMEs to global leaders across the US, Europe, Australia, and New Zealand. Don’t miss out on this opportunity to enhance your operations and grow your business.


Contact Magellan Solutions today and receive a complimentary 60-minute phone consultation with one of our dedicated business development officers. Act now, and let us help you reach new heights of success!

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