ARTICLE · 17 MAY 2004

Outsourcing in the Philippines

Zambrano And Gruba Law Offices

Explore more from Zambrano And Gruba Law Offices

Summary : Outsourcing is considered as one of the bright spots in the Philippine economy. It will be a major driver of growth for the next five years. The Philippine Government has enacted several policy directives to attract foreign investment in this area, including tax incentives, customs perks, and a favorable labor policy. Several of these tax and fiscal incentives are discussed in this article.

PhilippinesEmployment and HR

Angelo Advincula

(Summary : Outsourcing is considered as one of the bright spots in the Philippine economy. It will be a major driver of growth for the next five years. The Philippine Government has enacted several policy directives to attract foreign investment in this area, including tax incentives, customs perks, and a favorable labor policy. Several of these tax and fiscal incentives are discussed in this article.)

Outsourcing is either a dirty word or the holy grail, depending on which side of the debate you’re on.

It’s one of the hottest of the hot button economic issues this political season in the United States, with John Kerry declaring companies who outsource as "modern day Benedict Arnolds". There is legislation pending in several US States prohibiting outsourcing of state government contracts.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

DOLE Issues Wage Order No. NCR-28 Amid Pending Litigation Over Wage Order No. NCR-27

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

BULLETS January-August 2026 (Bulletin On Employment Trends By SyCipLaw Vol. 2)

PhilippinesEmployment and HR

SyCip Salazar Hernandez & Gatmaitan

Self-Employed And Independent Contractors: Mitigating Legal Risks In The Philippines

PhilippinesEmployment and HR

GRATA International

The 2025 NLRC Rules: Consolidating Reforms And Narrowing Procedural Leeway

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

Webinar: Beyond The Checklist: From Surface Compliance To Real Readiness When DOLE Knocks

GlobalEmployment and HR

Villaraza & Angangco (V&A Law)

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Technology Outsourcing

Comparative Guide

Employee Incentives

See more popular content from

Employment and HR

DOLE Issues Wage Order No. NCR-28 Amid Pending Litigation Over Wage Order No. NCR-27

On 11 September 2026, the Regional Tripartite Wages and Productivity Board–National Capital Region (“RTWPB-NCR”) published Wage Order No. NCR-28, granting a PHP 60.00 increase in the daily minimum wage of covered private-sector workers in Metro Manila, effective 26 September 2026.

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

Mutual Separation Agreement, A Better Understanding

The Philippine Labor Code only recognizes two modes of involuntary separating an employee from employment, namely: through just causes and authorized causes.

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

At A Glance: Employers' Health And Safety Responsibilities In Philippines

Under the Philippine Labor Code, Republic Act (RA) No. 11058 (the Occupational Safety and Health Law) (the OSH Law) and its implementing rules and regulations (IRR), employers are mandated to...

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

Offsetting The Employee's Liability To The Employer With His Final Pay

Under the Department of Labor and Employment ("DOLE") Labor Advisory No. 6, series of 2020 or the Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment...

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

Off-Duty Crimes And The Limits Of Employer Discipline In Philippine Labor Law

As background checks and digital due diligence become standard practice, employers are increasingly aware of their workers' conduct beyond the workplace.

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

The 2025 NLRC Rules: Consolidating Reforms And Narrowing Procedural Leeway

The 2025 NLRC Rules of Procedure (“2025 Rules”), which became effective 13 January 2026, replaced the 2011 NLRC Rules of Procedure, as amended (“2011 Rules”), after nearly fifteen years of application. Although the 2025 issuance has been described as a major procedural overhaul, a closer comparison shows that the reform is largely a recalibration rather than a wholesale restructuring.

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

Guidelines In The Accreditation Of Agents And Appointment Of Employers' Authorized Representatives For Filing Of Alien Employment Permit Applications And Related Documents

On February 11, 2022, the Department of Labor and Employment ("DOLE") issued Department Order No. 221-A-22, or the Guidelines in the Accreditation of Agents and Appointment of Employers...

PhilippinesEmployment and HR

SyCip Salazar Hernandez & Gatmaitan

Finding A Final Rule: How Philippine Courts Classify Workers As Independent Contractors

With more and more businesses seeing value in engaging skilled Filipino contractors to perform specific services, the persistent challenge that confronts them is misclassification of their contractors as their employees.

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)

Self-Employed And Independent Contractors: Mitigating Legal Risks In The Philippines

The main legal risks arising from this misclassification include financial liabilities for unpaid statutory benefits and back taxes, and a finding of illegal dismissal due to the violation of the worker's security of tenure.

PhilippinesEmployment and HR

GRATA International

Unpacking The Work-From-Home Concept In Philippine Labor Law

The COVID-19 pandemic is causing a shift in paradigm in how work is done in the Philippines. Whereas before long hours of stay in the office was the norm, the imposition of the Enhanced Community Quarantine ("ECQ")...

PhilippinesEmployment and HR

Villaraza & Angangco (V&A Law)