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With the Philippines surpassing India as the top offshore destination for voice services, the country’s business process outsourcing (BPO)
industry is expected to sustain its momentum for the following years. Industry experts and insiders look forward to $20-25 billion in revenue by 2016 and a projection of 8% of the country’s total GDP (gross domestic product). This figure is predicted to shoot up to $55 billion by 2020, which could account for 11% of the country’s GDP. Moreover, the industry is set to create over 1.5 million new jobs this 2016 and employs over one million.
The Philippines ranks 7th as the prime BPO location out of 51 countries. However, Makati’s business districts, Bonifacio Global City in Taguig and Mandaluyong, remain attractive spots for global firms, the cities of Sta. Rosa, Davao, Cebu, Bacolod, and Iloilo have been pegged as areas for outsourcing growth.
Contributors to Growth
Office rental rates in the Philippines are still the most affordable and best value in the Asian region. The demand for office space in the country remains high, with 400,000 square meters of new rental spaces being made available this year. More areas might be developed for office use, given sustained BPO interest in the country.
Global firms have already taken note of the country’s young and skilled labor pool. The Filipino workforce is perceived to be rich in talent, yet still untapped for the most part. Western companies outsource to the Philippines in hopes of finding and securing talent they may not have access to if they hire in their countries. The lower salary rates of Filipino employees also make outsourcing a cost-effective solution.
American companies also tend to prefer Filipino agents, not just because of their English fluency but because of their neutral accents. This continues to be the country’s main advantage over India’s call center industry.
Voice call center services dominate services that have contributed to outsourcing growth. The Philippine BPO industry is primarily known for its contact centers. Still, it is already expanding to IT services and specialized fields such as healthcare BPO, finance, and accounting services, legal process outsourcing, insurance processing, and many more.
Positive Forecasts
The exponential growth of the Philippine BPO industry has given credit rating agencies and financial institutions a rosy outlook for the country. It has also positively affected other aspects of the economy – helping drive the demand for commercial property space and creating job opportunities for college-educated Filipinos. The industry and remittances from overseas Filipino workers continue to buoy the country’s economy. Local BPO companies and their employees can look forward to bright prospects and further growth in 2016.
