Why more IT, healthcare, and virtual assistant platforms are turning to the Philippines for EOR employees in 2025

The Philippines has emerged as a leading global outsourcing destination in 2025, particularly for industries such as IT, healthcare, and virtual assistance. Increasingly, companies in these sectors are turning to the Philippines for Employer of Record (EOR) employees due to several strategic advantages outlined below.

Key Factors Attracting IT, Healthcare, and Virtual Assistance Firms to Philippine EOR Services

1. Abundant Skilled Professionals in IT, Healthcare, and Support

The Philippines offers a vast talent pool with over 1.8 million outsourcing professionals. Each year, more than 850,000 university graduates, including numerous STEM specialists, enter the workforce. Healthcare companies leverage Filipino expertise in medical coding, billing, and telehealth, while the rapidly growing virtual assistant sector provides essential administrative and customer support skills. EOR services simplify hiring, ensuring compliance and minimizing employment risks.

2. Cost Efficiency and Competitive Labor Costs

Labor costs in the Philippines are significantly lower (50–80%) compared to Western countries. Average BPO wages around $2 per hour allow companies to scale teams affordably, substantially reducing operational expenses. Government incentives, such as income tax holidays and duty exemptions, further boost these savings. EOR solutions streamline payroll management and regulatory compliance, enhancing cost efficiency.

3. High English Proficiency and Strong Communication Skills

Filipino professionals consistently rank high in global English proficiency, facilitating seamless international team integration. Neutral accents, familiarity with Western culture, and strong customer service skills minimize communication barriers, resulting in high client satisfaction and effective global collaboration.

4. Robust Digital Infrastructure Supporting Remote Work

Significant infrastructure upgrades have made the Philippines highly suitable for remote and hybrid work. Enhanced internet connectivity, modern data centers, and government initiatives like the National Broadband Plan and Telecommuting Act ensure reliable remote work operations. EOR services further simplify managing remote teams, supporting flexible work models.

5. Pro-Business Government Policies and Incentives

The Philippine government actively encourages foreign investment through policies like income tax holidays and import duty exemptions in Special Economic Zones. Regulatory frameworks, including the Data Privacy Act and Digital Workforce Competitiveness Act, ensure compliance and facilitate workforce training. Companies using EOR services particularly benefit from streamlined regulatory processes and supportive infrastructure.

6. Strategic Time Zone for Continuous Global Operations

Operating on GMT+8, the Philippines enables strategic “follow-the-sun” operational benefits. Filipino teams effectively provide overnight services for North American clients and evening coverage for European markets, ensuring uninterrupted productivity. Asia-Pacific companies also benefit from significant overlapping business hours, enhancing coordination and workflow.

7. Cultural Compatibility and Strong Work Ethic

Filipino professionals' cultural compatibility with Western organizational norms significantly simplifies team integration. Known for adaptability, loyalty, and strong work ethic, they consistently deliver high-quality customer service and effective global teamwork. Their cultural affinity fosters seamless collaboration, improving productivity and customer satisfaction.

Overall, the Philippines in 2025 represents an ideal choice for EOR staffing, combining skilled professionals, cost efficiency, advanced infrastructure, supportive government policies, strategic geographic positioning, and exceptional cultural compatibility.

How Cadana Helps You Hire Filipino Talent

Cadana’s Employer of Record (EOR) services simplify the process of hiring and managing talent in the Philippines. By handling local compliance, payroll processing, benefits administration, and tax obligations, Cadana enables international businesses to quickly and seamlessly onboard skilled Filipino professionals without the need to establish a local entity. This allows companies to focus on growth and operations while ensuring full compliance with Philippine labor laws and regulations.

The Philippines remains the world’s second-largest outsourcing destination, with a robust IT-BPM sector projected to reach $59 billion by 2028. Ongoing investments in workforce training, especially in technology and healthcare roles, ensure a continuous supply of skilled professionals. Numerous global companies continue to report successful expansions, benefiting from quality talent, cost savings, and reliable service delivery.

In 2025, the Philippines is positioned as a strategic talent hub, offering global companies skilled professionals, substantial cost advantages, robust digital infrastructure, and supportive government policies, all driving the rapid expansion of IT, healthcare, and virtual support industries.

Partnering with Cadana further enhances these benefits by streamlining your access to top Filipino talent.