Business Process Outsourcing (BPO), more commonly just known as Services Outsourcing, has been a huge contributor to the global economy over the years. Between 2012 and 2016, the global BPO industry grew at a compound annual growth rate of 4.4% for a total revenue of $140.3 billion in 2016. In the Philippines, the gross domestic product (GDP) is projected to rise 7.5% for the year 2018. Aside from overseas Filipino workers, a significant contributor to the GDP growth is the BPO industry.
A report by Reuters revealed that the Philippines has claimed top spot as a call center destination. The 2017 A.T. Kearney Global Services Location Index, the Philippines was ranked 7th in its overall index. In the Top 20 Digital Nations list, the Philippines ranks in the Top 3 next to India and China. It is projected that the Philippine BPO industry will reach $40 to $55 billion by 2020. This will generate an estimated 1.3 to 1.5 million new jobs in the country in the coming years.
A Center For Business Process Outsourcing
Even though it is a cluster of islands, the Philippines has emerged as one of the most influential players in the BPO industry. What makes this tiny Southeast Asian country a strong hub for the BPO industry in this side of the world?
High English literacy rate
As far as English proficiency is concerned, the Philippines ranks 3rd in Asia, according to EF EPI. The country also has a high literacy rate of 96.9%. In addition, Filipinos have a deep American influence rooted in entertainment and media due to the long history of amicable relations between the Philippines and the United States. The English language is also part of the ordinary person’s vocabulary. In the same A.T. Kearney Index, it was noted that Filipino workers have neutral accents that caters more to American customers.
Deeply rooted Western culture
Being under Spanish and American rule gave the Philippines its deep connection with Western values and culture. Filipinos are also known for their ability to adapt to the nature of other nations from the East to the West.
Competent service even in lower rates
Quality service is often associated with high prices, however, this cannot be said of Philippines based outsourced solutions, such as those offered by airisX. Even though rates are lower than elsewhere, you can count on airisX delivering quality work. Outsourcing digital marketing or voice services can be costly but price will not be an issue for Philippine based BPO companies. These rates are often start-up friendly.
Generating Jobs & Helping the Economy
The BPO industry has truly been a huge contributor to the Philippine economy. It gives jobs to about 1.15 million Filipinos and is one of two earners of foreign exchange along with OFW (offshore workers) remittances back to the country. Call centers represent 4/5 of the BPO industry. The United States remains the biggest customer for BPO companies but there is also a growing number of customers from Europe, Australia, and New Zealand.
Shifting to High Level Skills
Recently, there is expected to be an increase in the number of mid and high-skilled jobs that require abstract thinking and specialized expertise, such as Product Analysts, Bookkeepers, Manufacturing Design, and other skilled needs. In addition, the industry must consider transitioning from call centers to Big Data analytics, app development, and related fields.
The demand for outsourced workers continues to be strong, and airisX is ready to help your company access this service and country through our solutions.