Why the Philippine Outsourcing Industry is Booming Despite Global Uncertainty
INTRODUCTION
Despite the global economy experiencing its fair share of difficulties, the Philippine's outsourcing industry is continuing to thrive. Business Process Outsourcing (BPO) appears particularly prosperous and looks set for even greater expansion in years to come - creating hundreds of thousands new job opportunities while simultaneously driving up national revenue streams.
Hi, my name is Ruffy Galang, your friendly neighborhood BPO solutions expert and CEO of Remote Employee, one of the fastest rising BPO companies in the Philippines. I’ve been working in the industry for more than a decade now, and I’d like to share with you some of my insights in the space. If you’ve got any thoughts and comments or suggestions for content, please feel free to reach out to me in the comments section below, send me a direct message via LinkedIn, or email me at [email protected].
Bright future for BPOs in the Philippines
Recent market projections show a bright future for the Business Process Outsourcing (BPO) industry in 2023, despite potential macroeconomic woes. According to the IT and Business Process Association of the Philippines (IBPAP), an overwhelming 83% of BPO companies expect growth and plan to invest their resources into cutting-edge sectors such as animation development, contact center management, cybersecurity protection, healthcare tech solutions and IT operations - paving the way to success in an ever more digitalized economy.
Despite the pandemic, Business Process Outsourcing (BPO) in the Philippines experienced a turbocharged performance last year.
Headcount grew 8.4% while revenues jumped 10.3%, totaling $32.5 billion and accounting for almost half of all office space demand in-country - showing this vital industry's growing importance to their economy overall.
Banking, financial services, healthcare, retail technology and telecommunication sectors drove much of this success story.
Decentralizing Manila
The Philippine business process outsourcing (BPO) industry has seen a surge in growth outside of the National Capital Region, with hubs blossoming across provincial areas. By 2022, 31% or 486000 workers will be dispersed to Cebu, Davao and other locations creating employment opportunities in the countryside while easing congestion pressure on Metro Manila.
In fact, our internal heat mapping here at Remote Employee identified that a huge percentile of our workforce comes from the Southern Pampanga region (Guagua, Lubao, Floridablanca), and we've decided that we as a company would capitalize on the talents brought about by this area.
A top global outsourcing destination
To ensure long-term success, the Philippines' BPO industry is taking a collective approach towards building skilled talent and driving competitiveness. With its impressive advantages – such as Filipinos’ high aptitude for English and customer service – combined with an advantageous business climate – the nation has set ambitious goals to reach 2.5 million full-time employees and $59 billion in revenue by 2028, paving the way for it to become one of the world's premier outsourcing destinations.
Conclusion
In my opinion, despite looming global economic uncertainties, the Philippine BPO industry is still anticipated to experience dynamic growth in the years ahead. This can be attributed to a variety of factors - Filipino workers' proficiency with English and customer service expertise; a youthful and highly-educated labour pool; as well as prioritization from all stakeholders that cultivates an encouraging business climate.
To realize its goal of 2.5 million jobs and $59 billion USD by 2028, leveraging these competitive advantages while diversifying services and expanding geographic reach are key areas for improvement moving forward– if done right, this could produce significant employment opportunities along with substantive economic gains throughout the Philippines.
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