Philippines tops outsourcing index, beating India

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MANILA, Philippines — The Philippines ranked No. 1 globally as an outsourcing destination in a global index, edging out traditional leader India on the strength of cost competitiveness, English proficiency and workforce capability.

On the latest Ataraxis Global Outsourcing Talent Index, the Philippines earned a score of 90.65, ahead of Malaysia and India, which rank second and third, respectively.

The report cited the Philippines’ “strong balance of cost, English, and talent” as the key drivers behind its top ranking.

The index ranked the following countries as the top 10 outsourcing hubs:

1. Philippines
2. Malaysia
3. India
4. Chile
5. South Africa
6. Nigeria
7. Peru
8. Indonesia
9. Argentina
10. Romania 

Edge in English, infrastructure

The Philippines outperformed India in English proficiency, scoring 90 versus India’s 60, according to the index breakdown.

It is also ranked No. 2 in Asia and No. 28 globally for English proficiency, placing it on par with countries such as Ireland, Switzerland and Monaco, and ahead of Spain, Brazil and Mexico.

In digital infrastructure, the Philippines scored 70, higher than India’s 50, with the report citing strong connectivity in major hubs including Manila, Cebu and Davao. More than 73.6% of the population is now online.

The country’s infrastructure score also matched levels seen in Singapore and Switzerland, and exceeded those of South Korea, South Africa, Portugal and the Netherlands.

Where India still leads. India remains competitive in talent depth, achieving a perfect score of 100, compared with the Philippines' 90.

Both countries were evenly matched in labor cost (96) and business stability (60), indicating similar strengths in affordability and environment.

Shift toward higher-value roles

The report also noted a shift in the Philippines' outsourcing profile, moving beyond voice-based services to more specialized roles such as bookkeepers, data analysts, healthcare virtual assistants and medical billers.

India, meanwhile, continues to dominate in more technical digital roles, including software engineering, mobile development and financial analysis.