The Business Process Outsourcing Industry (BPO) In The Philippines

bpo in the philippines


For years now, the Philippines have been listed as one of the best countries to outsource BPO services from. It has maintained its crown as the number one country that offers great call center services for various businesses across the world.

BPO in the Philippines has beaten India as the best customer service call center location. As the benefits of outsourcing in the country get known by many companies that want the service, they opt to do it in the country.


When did BPO start in the Philippines?

Before updating readers about the latest news regarding call center outsourcing in the Philippines, let us answer this question first. The operation of BPO in the Philippines actually started in 1992 and not in 2000.

An international Global Resource Center in 1992 has instigated the beginning of the local BPO industry in the country. Three years later, the Special Economic Zone Act was passed by Congress which paved the way to the creation of the Philippine Economic Zone Authority. It has opened many doors for international BPO companies in the country.

A multinational BPO and a US-based company, meanwhile, started to open their Philippine branches in 2001 and 2003, respectively. It has generated jobs and increased the country’s GDP.


The Next Big Thing In BPO Philippines

Last year, the Philippines ranked second in Tholons Services Globalization Country Index. Just behind India, the country has six cities in the top one hundred. According to Reuters, not only the Philippines is serving the United States but it has growing clients in different continents and countries like Australia, New Zealand, and Europe.

With that in mind, the BPO in the Philippines is definitely growing strong and steady as the PSA (Philippine Statistics Authority) reported that the country currently has 851 registered BPO companies with 429 call centers. As a result, the Banko Central ng Pilipinas has expected a 10-percent increase (approx. US$24.5 billion) in revenue.

However, the BPO industry in the Philippines also has some things they worry about:
  • Artificial Intelligence
  • Data Analytics
  • Cybersecurity

These three things are now facing and threatening the country’s growing industry. Though Artificial Intelligence or famously known as AI is there and has been existing for the last years, many countries that outsource in the Philippines are now opting to use it, especially for the simple and mundane tasks.

Nevertheless, BPO in the Philippines is still going strong as the companies together with the government are finding ways to solve the problem. They are opting for the employees to learn harder tasks and are stepping up their game to be ready for the worse.

In relation to that, data analytics is also becoming an even bigger thing. Many companies give importance to huge data and information as they see their uses and advantages. Because of this, the Philippines is also considering to provide services related to data analytics. BPO companies have started hiring people who can work in it.

The cybersecurity had also affected not just the BPO in the Philippines but all the companies, brands, and corporations in the world. With the European Union passing a stricter law regarding online aspects, BPO companies have to pass stricter online security to make sure their clients and customers are protected from online fraud and other online illegal transactions.

With the three being solved and worked out by different agencies and organizations in the Philippines, it is safe to say that not much will change.


Benefits of BPO in the Philippines

Now, let us talk about the advantages a company can get when they outsource.

Reduce costs/ save money

The first thing is the reduction in costs. Cost-effective services are offered all around the Philippines. This benefit is not only for large corporations but definitely for start-ups and small companies that have small budgets.

English proficiency

Since the main client of the Philippines are mostly from English speaking countries, it is a huge advantage that employees and job seekers are skillful in the language. Schools are teaching the English language from the start and that has made Filipinos acquire a neutral accent unlike its competitor country, India.

High-quality talent pool

The Philippines has a high rate of college graduates and job hunters every year. As a result, the pool is good and is beneficial to the BPO industry in the country. Employees are also very flexible when it comes to learning especially fresh graduates. They are like a sponge that sips everything.

Ability to adapt to different cultures

Due to its historical background, Filipinos had developed the ability to easily adjust to different cultures— making the Philippines a really good place to outsource. The people are very open to western culture and know many things about it.

Tax incentives

This one has garnered tons of investment from international companies all over the world.

Another sector of the BPO industry that the Philippines is really doing great is the call center support.


What is call center support?

Call center support is the customer service part of the business. This is where direct customer transactions mostly take place. An inbound call center, for instance, is directly related to customer service which usually deals with questions, queries, and other concerns of customers.

There are many different types of call center customer support services. Multiple mediums or omnichannel support also exists. This is where call centers or BPO solutions have different channels that are available to their clients.

For example, a company can use social media, email, live chat, and or phone to conduct customer service. This way they can accommodate more customers and make them happier through the call center support.

As you outsource call center customer service; your company will be able to cater to customers 24/7, solve issues efficiently, have multilingual support, and take care of overflow calls.


Looking for BPO services that can help in streamlining and improving your business processes? Contact us now!


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Magellan Solutions
Magellan Solutions
Magellan Solutions is a Filipino-owned outsourcing company. It provides inbound and outbound contact center services as well as other business process outsourcing (BPO) services that cover finance and accounting, healthcare, sales and marketing, engineering, architecture, design, data management, human resources, legal, and IT. Combining years of experience; unrivaled expertise; and capabilities across industries and business functions, Magellan Solutions bring optimum approaches to strategies of business operations by delivering customizable BPO and customer management solutions to any type and any size of business.