10 Reasons Why US Companies Outsource Customer Service to the Philippines

Published: December 23, 2021
Reasons Why US companies outsource customer service to the Philippines

Outsourcing has undergone tremendous upgrades since it first grew as a trend among U.S. manufacturing firms. From starting as a cost-reduction measure employed exclusively by large companies, outsourcing is now a widely utilized business strategy. Enterprises of all sizes now outsource customer service and other functions offshore.

Let’s Take a Quick Look Back

Outsourcing began in the U.S. in the late 1970s when large manufacturing corporations, such as General Electric and Ford, started to establish manufacturing plants offshore. When the commercial use of the internet became widespread in the 1990s, many American firms expanded their outsourcing initiatives. They started delegating other crucial, non-core business functions to various countries. 

The Philippines: A Standout in Customer Service Outsourcing and Other BPO Services

For more than 40 years, the Philippines has consistently remained the top outsourcing destination of choice among U.S. businesses. Apart from being recognized as the call center outsourcing capital of the world, the country is fast gaining popularity in other areas, including healthcare, legal process, and data analytics. Let’s take a look at the reasons why—then and now—U.S. companies choose to outsource to the Philippines.

10 Reasons Why US Companies Outsource Customer Service to the Philippines

The US-Philippines Bilateral Economic Relations as of 2020 

Since 1989, the U.S. and the Philippines have shared a bilateral economic relationship and tax treaty. This financial tie has grown stronger year after year and opened opportunities to deepen relations in other areas. According to the Department of Commerce, the two countries traded over $25.3 billion in goods and services in 2020. 

Goods Trade

The Philippines is among the largest goods trading partners of the U.S. (ranked 31st). In 2020, the countries traded around $18.9 billion in goods. About $7.7 billion of which were goods exports while $11.1 billion were imports. 

Services Trade

The U.S. traded around $6.4 billion in services to the Philippines in 2020. About $2.3 billion of which were service exports, while about $4.1 billion were imports. Among the key services exported by the Philippines to the U.S. were information technology, business process outsourcing, professional and management, and travel.

SuperStaff: The Fastest-Growing BPO and Call Center Outsourcing Provider in the Philippines

For more than 13 years, SuperStaff has provided excellent BPO and customer service outsourcing solutions for startups and established businesses alike. Our diverse expertise, deep pool of talents, and cost-effective services are among the reasons why many U.S. companies choose to engage us for their outsourcing needs. Contact us today to learn how you can outsource our services in the Philippines.

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