One of the fastest growing industries in the Philippines today is BPO or Business Process Outsourcing. The recent growth in the industry made Philippines outsourcing services the most sought after BPO in the South East Asia region. The outsourcing industry began to experience expansion in early 2000 when only a handful of BPO providers and employees were available. But as the BPO sector in the country continues to develop, more and more foreign investors are enticed to explore their opportunities in expanding their business with Philippine BPOs. The annual growth is attributed mainly to factors like lower labor costs with high quality output, the country’s adaptability to western culture, and a highly skilled workforce.
Next to Canada and India, the Philippines is considered to be the third largest offshore outsourcing destination in the world. At present, the country’s outsourcing industry accounts for about twenty five percent of the global business process outsourcing market which makes it a prime hub for business outsourcing in the South East Asia region. The attraction of the BPO market in the Philippines have enticed giant outsourcing operations for established companies from developed countries like the Bank of America, HSBC, Dell, IBM, Citi Group, and JP Morgan Chase who all have set up contact service centers in the country.
Among the reasons why Philippines outsourcing services experienced a consistent growth in the global BPO industry are several factors. Most outsourcing hubs in Asia offer competent human resources but none have higher literacy rate than the Philippines. This makes the Philippine labor force superior in education qualifications, not to mention their English language skills are an advantage for bringing down the communication barrier. The country also offers a strategic location ideal for Western and Eastern companies. This is to say that the country is thriving entry point to millions of people in the ASIAN market.
A lower labor cost can be translated into lower production cost and the good thing about this is that the quality of the output is never sacrificed. Filipino workforce is known for their dedication and loyalty and business companies can take advantage of these characteristics for acquiring a cost effective workforce with all the right values and skills. There is also a growing development in infrastructure which is an excellent enticement for investors. At present, BPO operations key cities in the country branched out to nearby provinces further lowering the cost of hiring employees and operational expenses in general.
According to the independent study performed by IDEA (Institute for Development and Economic Analysis), the outsourcing industry in the country earn annual income of P3 Billion in National Capital Region alone and this figure does not yet include other players in nearby provinces. Although Manila and Cebu is still among the popular choice for Philippines outsourcing, other provinces are starting to catch up in the effort to turn their regions into key outsourcing destinations in the country with lower cost but with higher quality of workforce. This is a healthy competition that forces out other BPO providers to match the quality services offered by BPO counterparts in provincial districts.
Daven Michaels Author of the book Outsource This!