PHL tops ranking of outsourcing destinations

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES has topped a global ranking for outsourced talent, winning points for strong English proficiency and competitive labor costs, according to Ataraxis, a US hiring platform.

The company’s Global Outsourcing Talent Index, which  evaluated 193 countries, classified the Philippines as an “elite sourcing hub” and described the country as the “most attractive destination for companies hiring global remote talent.”

Rounding out the rest of the top 10 were Malaysia, India, Chile, South Africa, Nigeria, Peru, Indonesia, Argentina, and Romania. 

The index evaluates countries across five key factors that influence global hiring: labor cost (52.5%), English proficiency (20%), talent availability (17.5%), digital infrastructure (5%), and business, legal, and political stability (5%).

According to the report, the Philippines scored 96 on labor cost; 90 on English proficiency; 90 on talent depth; and 70 on digital infrastructure. Its lowest rating (60) was for business stability, where it was classified as “moderate risk.”

Jack Madrid, president and chief executive officer at the IT & Business Process Association of the Philippines, said the ranking represents the industry’s value proposition to global firms. 

“A talent base of 1.9 million digital Filipino workers, validated on a global scale, signals that the country can support both scale and more complex work, making it an attractive destination for companies looking to expand or diversify their operations,” he said in an e-mail.

To retain its position, the industry must focus on upskilling talent to climb the information technology-business process management value chain.

“This requires sustained investment and strong coordination between government and industry to keep policies, education, and training aligned with global demand,” Mr. Madrid said.

Meanwhile, the Philippines’ low stability score reflects concerns about policy consistency and exposure to external shocks, according to Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera.

“The government needs to strengthen policy predictability and regulatory clarity as investors value stable rules, faster approvals, and less bureaucratic friction,” he said via Viber.

Mr. Rivera also cited the need to improve the reliability of power, internet, transport, and cybersecurity infrastructure.

Managing inflation, a stable currency, and credible fiscal policy would also help reduce perceived risks, he said.

“Strengthening governance and ease of doing business, including contract enforcement and institutional coordination, can significantly improve investor confidence and lift the country’s business stability score,” Mr. Rivera said.