7 UK Companies Outsourcing to the Philippines

Outsourcing to Filipinos has become a strategic business move for many companies around the globe, particularly those based in the United Kingdom. The country’s growing talent pool, cost-efficiency, and high level of service quality have attracted numerous businesses seeking to optimize their operations and scale effectively. By outsourcing various functions such as customer support, IT services, and creative design, UK companies have been able to focus on their core competencies while achieving significant cost savings and operational efficiencies.

Key Takeaways

• Significant Cost Reduction: UK companies can save 60-70% on salary costs by outsourcing to the Philippines, allowing for more efficient resource allocation and a focus on core business functions.
• Access to a Dense Talent Pool: The Philippines produces 500,000 university graduates annually who are often trained in Western business practices, offering expertise in fields like IT, customer service, data management, and development.
• Strategic Time Zone Advantage: The time difference allows for round-the-clock operations. A team in the Philippines can work while the UK sleeps, effectively doubling productivity and enabling 24/7 customer support.
• Cultural and Linguistic Alignment: High English proficiency and a deeply ingrained service-oriented culture ensure smooth communication and proactive, client-focused work from Filipino professionals.
• Outsourcing is Legal and Compliant: It is perfectly legal for UK companies to outsource. However, it requires proper structuring to comply with UK GDPR for data protection, tax laws, and employment regulations, often facilitated by using an Employer of Record (EOR).
• Robust Infrastructure & Government Support: The Philippines has developed business districts with reliable infrastructure (redundant internet, power) and a government that actively encourages foreign investment through tax incentives and streamlined processes.

Benefits of Outsourcing Tasks for UK Companies

Outsourcing tasks to the Philippines offers several advantages that make it an attractive destination for UK companies. First and foremost, the cost savings are substantial. Labour costs in the Philippines are considerably lower compared to the UK, allowing companies to allocate resources more efficiently. Additionally, the country boasts a large English-speaking workforce with a high level of education and technical proficiency, which ensures quality service delivery.

Cultural compatibility is another benefit, as Filipinos are known for their strong work ethic and customer-oriented mindset. The time zone difference also provides a strategic advantage, enabling UK companies to offer round-the-clock services. Moreover, the Philippine government actively supports the outsourcing industry, offering tax incentives and infrastructure development to attract foreign investment.

Why Do Foreign Companies Outsource in the Philippines?

Let’s address the elephant in the room: why the Philippines specifically?

Yes, cost matters: you’ll save 60-70% on salaries. But that’s table stakes. Here’s what actually drives the decision:

The talent density is extraordinary. The Philippines produces 500,000 university graduates annually. More importantly, they’re trained in Western business practices from day one. This isn’t accidental; it’s a deliberate economic strategy spanning decades.

Time zones become your superpower. While you’re sleeping in London, your Manila team is pushing projects forward. I’ve seen companies literally double their development velocity just through intelligent time zone arbitrage. One fintech client went from 2-week sprints to 1-week delivery cycles.

Cultural alignment runs deeper than language. Yes, the Philippines consistently ranks high in English proficiency. But what matters more is the service orientation. Filipino professionals genuinely care about client outcomes; it’s embedded in the culture. They’ll flag problems proactively, suggest improvements, and take ownership.

The infrastructure exists at scale. Unlike other emerging markets, the Philippines has purpose-built business districts, redundant internet connections, and backup power systems. Your team shows up even during typhoons. I’ve witnessed 99.9% uptime across multiple clients.

Government stability and support. The Philippine government actively courts foreign investment through tax incentives, streamlined registration, and dedicated economic zones. They want you there.

The strategic advantage isn’t just cost, it’s accessing a massive talent pool that’s eager, capable, and culturally aligned with Western business values.

Success Stories: UK Companies Outsourcing to Filipino Teams

Several UK companies have successfully leveraged outsourcing to Filipinos to achieve remarkable results. Here are ten notable examples:

1. Spot Ship: Training AI that Skyrockets Productivity

Spot Ship is the ship broker’s digital assistant. Its Filipino team is helping build Spot Ship’s powerful Artificial Intelligence and machine learning tools. Data entry specialists and data managers focus on machine learning, which enables the platform to support optimal decision-making and offer rapid customisation according to the preferences of the clients it serves.

2. Curve: Timely and Effective Customer Interactions

Financial technology company Curve uses outsourcing to manage customer interactions, providing timely and effective support through Filipino teams. This strategic move allows Curve to offer exceptional customer service, handle inquiries promptly, and address issues efficiently, leading to higher customer satisfaction and loyalty.

3. Monzo: Round-the-Clock Customer Support

Monzo, a digital bank, has outsourced various customer support functions to the Philippines to provide round-the-clock assistance to its growing user base. By leveraging the expertise of Filipino customer service agents, Monzo ensures that customer inquiries and issues are addressed promptly and effectively, enhancing the overall user experience.

4. Revolut: High-Quality Customer Service and Technical Support

Fintech company Revolut utilises Philippines-based teams for customer service and technical support, ensuring a high level of service quality for its global customers. By outsourcing these functions to the Philippines, Revolut can offer timely and efficient support, contributing to its reputation as a reliable and customer-centric fintech company.

5. Hopin: Expertise in Development and Customer Service

Virtual events platform Hopin taps into the expertise of Filipino developers and customer service agents to maintain and enhance its platform. Outsourcing to Philippine teams allows Hopin to access skilled professionals who contribute to the platform’s continuous improvement and provide excellent support to event organisers and attendees.

6. Bulb: Excellent Customer Support and Back-Office Functions

Energy provider Bulb has outsourced customer service and back-office functions to the Philippines, ensuring excellent customer support. By leveraging the skills of Filipino professionals, Bulb can offer efficient and effective customer service, manage administrative tasks, and focus on delivering sustainable energy solutions.

7. OakNorth: Driving Efficiency and Innovation through Data Management

OakNorth, a fintech company, outsources customer service and data management functions to the Philippines, driving efficiency and innovation. By utilising Filipino talent for data-related tasks, OakNorth can manage large volumes of data effectively, enhance its analytical capabilities, and provide better services to its clients.

Is Outsourcing Illegal in the UK?

No. Full stop.

But I understand why this question surfaces. Brexit, changing regulations, and data protection concerns. It creates uncertainty. So let’s clear this up definitively.

UK law explicitly permits outsourcing. There’s no legislation preventing UK companies from hiring overseas talent or contracting with foreign service providers. What matters is how you structure it.

The compliance framework is straightforward:

Data Protection (UK GDPR): You remain the data controller. Your Philippine team are processors. You need:

• Standard contractual clauses
• Data processing agreements
• Security assessments
• Clear policies on data handling

Tax Obligations: You’re not creating a permanent establishment in the Philippines if structured correctly. Your UK company remains UK tax resident. The Philippine team or agency handles their local tax obligations.

Employment Law: This is where it gets interesting. If you hire through an agency or EOR (Employer of Record), they handle Philippine employment law. You maintain a B2B relationship. Direct hiring requires more complexity, but it isn’t illegal.

What triggers compliance issues:

• Moving decision-making authority offshore
• Establishing physical offices without proper registration
• Ignoring data protection requirements
• Misclassifying employees as contractors

Penbrothers guided companies through Financial Conduct Authority (FCA) compliance while outsourcing. Even in highly regulated sectors, it’s completely legal with proper structure.

The key? Document everything. Create clear policies. Maintain UK oversight. Work with professionals who understand both jurisdictions.

Can I Run a UK Company from Abroad?

Yes.

Here’s the strategic framework:

Company Structure Remains UK-Based

• UK limited company registration stands
• UK business bank account continues
• UK registered office address (use a service)
• UK VAT registration if applicable

Your Tax Position Shifts. This is crucial. Where you personally become tax resident matters:

• Spend less than 16 days in the UK (automatic non-resident)
• Or less than 46 days if no UK home
• Or less than 91 days with limited UK ties

After establishing foreign tax residence, you typically pay tax where you live, not where your company is registered.

Operational Realities

Banking: Some UK banks get nervous about non-resident directors. Solution: Wise Business, Revolut Business, or maintain existing relationships before moving.

Accounting: Hire a UK accountant who understands international structures. Worth every penny for peace of mind.

Time Zones: Running UK client meetings from Asia means 4 PM UK is midnight locally. Build your schedule accordingly.

Company Admin: Annual returns, confirmation statements, and VAT returns all continue as normal. Your accountant handles most of this.

The Philippines Angle: Many UK entrepreneurs discover they can run their UK company while building their Philippine team. Double efficiency. You’re on-ground to train and integrate your team while maintaining UK client relationships.

Critical Considerations:

• Maintain clear UK business substance
• Document your personal tax residence properly
• Keep UK professional advisors
• Don’t mix personal and company finances
• Consider permanent establishment rules

The opportunity? Run your UK business from paradise while building a world-class team at a fraction of UK costs. Just structure it properly from day one.

The Future of Outsourcing to Filipinos

The future of outsourcing jobs to Filipinos looks promising, with continuous advancements in technology and infrastructure poised to further elevate the industry. As global business dynamics evolve, the Philippines is well-positioned to remain a top outsourcing destination for UK start-ups and established businesses alike. The country’s ability to adapt to changing market needs, combined with its strong educational foundation and government support, ensures a steady supply of skilled professionals ready to meet the demands of international clients.

Moreover, the increasing focus on quality and value-added services in the outsourcing sector will likely lead to enhanced service offerings and higher standards of excellence. UK companies that strategically outsource to the Philippines will continue to benefit from cost savings, access to top-tier talent, and the ability to innovate and grow in a competitive landscape.

In conclusion, outsourcing to a Philippine remote team presents a myriad of opportunities for UK start-ups, enabling them to leverage expertise, drive innovation, and achieve sustainable business growth. As the outsourcing industry evolves, the partnership between UK companies and Filipino professionals is set to become even more robust, fostering mutual success and exceptional service delivery.

Reach out to Penbrothers to discuss how we can tackle your business challenges together.

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