The Philippines’ business process outsourcing (BPO) sector is an economic powerhouse and the fastest growing industry sectors in the Philippines. It has transcended the geopolitical scenario of the country, and is now more than just a lucrative industry as it provides well-paying, high-quality jobs while encouraging economic activity and investments all around. The sector will soon beat foreign remittances as the single major contributor to GDP, driven by progress in the emergent segments of analytics, health care and financial services outsourcing. Although rising levels of advancements in robotics, artificial intelligence and automation, strengthening development ties between industry and companies should see growth in high-value-added BPO positions over the medium term. The country’s success as a BPO firms in Philippines haven has seen its rise as a global leader in International fields, providing value-added BPO services, and according to some reports, the Philippines ranks as at top position in the top 100 outsourcing destinations in the world.
Strategic Factors that Contributed to the Growth of BPO firms in Philippines
There is a reason why Business Process Outsourcing in Philippines is commonly referred to as the “sunshine industry” of the Philippines. In just a few years, the BPO Industry in the country has eclipsed other developing countries, which has lost as much as 50 % business to the nation in the past few years (ASSOCHAM). Over time, there have been numerous factors which have ensured Philippines’ steady growth as a world player in Business Process Outsourcing services. Some of the key factors include –
- Investors in the country’s BPO industry are offered a sizeable number of incentives, comprising tax exemptions on imported equipment, tax holidays, simplified import procedures, and freedom to engage foreign nationals
- In the early years, when the BPO industry was still in its embryonic stages, then the CEO of Microsoft, donated free Microsoft Apps Licenses to the Professional Conversion Programmes (PCPs), ensuring the Gov. could hit the ground running with its initiative for speedy and effective BPO industry growth in the Philippines, while avoiding huge capital expenditures
- Filipino employees are not only confident and fluent in Western-accented English as compared to their other Asian counterparts, but are also patient; a trait which comes in handy when handling irate customers. Their close affinity to Western culture, and high problem-solving skills also set them apart from the other alike skilled workforce.
- The government is always fast to pass legislative changes which favor global organizations looking to outsource to the country. An example of the same would be the Data Privacy Act, which puts into place strict international quality data privacy standards, thus ensuring that sensitive information being handled on an everyday basis remain secure. Philippines are also focusing on growing industries in both voice and non-voice sectors like healthcare information management, global in-house centers (GICs), animation, and gaming also ensured future Business Process Outsourcing growth in the country.
Future Opportunities for the BPO firms in Philippines
The BPO industry is expected to move with the demand in terms of accepting new dealings that wish to invest or expand in the KPO (Knowledge Process Outsourcing) sector, which could then cater to a new demand, and cover a wide set of new roles. The higher expertise required is planned to be in these roles: Market Research; Fraud Analytics; Banking Insurance; Actuarial Engineering Services; Equity Research and Investment; Web Design and Development; Data Integration; Medical Transcript Preparation, Legal Processes and Project Management Research and Development;. However, it should be stressed that the growth in the BPO sector in the country continues to show noteworthy improvements.