Offshoring has gained significant traction as a strategic approach for businesses aiming to expand their operations and leverage a global talent pool. However, when considering offshoring to the Philippines, several misconceptions often deter business owners from exploring its potential. In this article, we will debunk these misconceptions and provide concrete data and research-backed insights into the benefits of offshoring from the Philippines. If you are an Australian or US business owner, understanding the realities of offshoring can be pivotal in maximizing growth and efficiency.

Misconception #1: The Philippines' workforce is poorly educated

Fact: Contrary to the misconception, the Philippines possesses a highly educated workforce. The country's education system emphasizes English proficiency, making it a business lingua franca. Interestingly, based on a study conducted by the World Economic Forum, the Philippines secured the 27th position out of 100 countries in terms of English proficiency. Additionally, the presence of over a hundred tech startups in the country's own Silicon Valley demonstrates the capabilities and competence of the Filipino workforce.

Misconception #2: Offshoring to the Philippines is expensive

Fact: Offshoring to the Philippines offers significant cost advantages. A study conducted by Colliers International reveals that labor costs in the Philippines are approximately 40% lower compared to Western countries. This cost competitiveness has made the Philippines a sought-after offshoring destination, resulting in the rapid growth of its outsourcing industry. With favorable exchange rates and lower overhead expenses, businesses can leverage the Philippines' skilled labor at a fraction of the cost compared to local hires.

Misconception #3: The Philippines' infrastructure is inadequate

Fact: The Philippines has made substantial strides in improving its infrastructure in recent years. According to the Global Competitiveness Report 2021 published by the World Economic Forum, the Philippines secured an impressive 7th position out of 34 countries when it comes to the quality of overall infrastructure.

The government's strong dedication to infrastructure development has resulted in significant advancements in telecommunications, transportation, and energy sectors. This progress ensures smooth business operations and effective collaboration with offshore teams.

Misconception #4: Offshoring to the Philippines means losing control over projects

Fact: Advancements in technology have revolutionized remote project management. With the Philippines being a renowned offshoring hub, companies have extensive experience in working with remote clients. Project managers and team leaders can utilize project tracking platforms, chat apps, and video conferencing tools to maintain close communication and control over projects. These tools enable real-time updates, seamless collaboration, and effective remote team management.

Misconception #5: The Philippines is plagued with political instability

Fact: While the Philippines has experienced political changes in the past, it has maintained overall stability and peace. The nation takes pride in being Asia's third-oldest democracy. Moreover, the Philippines' peace and order situation has improved significantly under the current administration, ensuring a conducive environment for businesses to operate smoothly.


Offshoring to the Philippines offers tremendous potential for businesses seeking expansion and access to a skilled offshore workforce. The robust education system, competitive labor costs, improving infrastructure, experienced remote workforce, and stable political climate make the Philippines an ideal offshoring destination.

To support these claims, let's consider some data and research findings:

  1. According to the World Economic Forum's Global Competitiveness Report 2021, the Philippines ranked 27th out of 100 countries in English proficiency, showcasing the country's strong emphasis on language skills.
  2. A study by Colliers International highlights that labor costs in the Philippines are approximately 40% lower than in Western countries, establishing the cost competitiveness of offshoring to the Philippines.
  3. The World Economic Forum's Global Competitiveness Report 2021 also ranked the Philippines 7th out of 34 countries in terms of the quality of overall infrastructure, indicating significant improvements in infrastructure development.

By leveraging the talent and expertise available in the Philippines, businesses can achieve substantial cost savings, enhanced productivity, and increased competitiveness. These benefits, combined with the growing tech ecosystem, stable political climate, and supportive government policies, make offshoring from the Philippines a strategic choice for businesses looking to thrive in today's global economy.