Ever since global outsourcing started, the growth of business process outsourcing (BPO) industry in the Philippines has developed at a faster rate. The Philippines continues to be one of the top call centers in the world and still remains as the top destination for customer relations management. It employs over a million workers and has hit $23 billion in revenues or 115 trillion Philippine Pesos in 2016. By 2022, the industry could make $40 billion in revenue if the projection will continue to rise, according to the Contact Center Association of the Philippines.
Due to the rise and advantages of global outsourcing, different countries started to outsource their back-office services — accounting, business-to-business IT support, human resources, and the like — to the country. A call center, for example, can get different partners from different locations as it will allow them to afford seats at a lower cost.
Philippine call centers usually plan to have Australian, UK, and US accounts. Australia will occupy the day schedule, the UK will have a mid shift schedule (around 2-3pm to 12 midnight), and the US will take up the overnight schedule.
The call center & BPO industry is indeed growing fast and the Philippine BPO sector is serving these countries for the much-needed investment, revenues, and contracts. As part of the global outsourcing industry, here are the countries that commonly outsource services to the Philippines:
This country in North America remains as the biggest client of the Philippine outsourcing industry accounting for more than three-quarters or 64.7 percent of the domestic BPO market. From a cultural perspective, the United States and the Philippines have a strong bond dating back to the 1800s. As a result, Filipinos have a cultural affinity for the United States. A former colony of the United States, the country is proud of its excellent English skills that attract English-speaking businesses.
The Philippines’ linkage with the United States has been dynamic, robust, and imperative. Both countries know the importance of client relationships. This relationship is fostered by a shared history and loyalty to mutual values, especially a commitment to freedom, democracy, and a market economy.
In 2007, a research done by the European IT Service Centre concluded that only 1.2 percent of European share in the industry went to the Philippines. Ten percent of local BPO revenue was derived from European accounts, which most of it was from the United Kingdom (9.2 percent). The first step that changed this was the creation of Team Europe, led by the European Chamber of Commerce of the Philippines and the European IT Service.
The European market is now significantly larger, making up to ten percent of the $4.5 billion BPO industry in the Philippines. Since 2009, EU businesses have been well established in the BPO industry from $350 million to $1 billion in 2012.
Moreover, just last year, European companies started to see Philippines as one of the best BPO hubs in the world. More and more businesses have started to invest in the country’s BPO workforce. As a matter of fact, Nordic Chamber of Commerce president Bo Lundqvist stated that the Philippines is an “outsourcing destination” for accounting, information technology (IT), and graphic design jobs.
The good news for Australian businesses is that it has a noticeable influence in the Philippine BPO arena. With Australia now developing its business needs, many Australian companies are now looking for an outsourcing investment, stated Philippine Institute for Development Studies (PIDS). Those companies are looking for good BPO companies specifically in its IT departments. This makes working for Australia’s BPO even more attractive as the Philippines is only two hours behind AEST, hence the majority of agents working during the day.
Australia and the Philippines have accomplished diplomatic and economic ties. These ties were officially established in May 1946 when Australia’s first Consulate General was inaugurated in Manila. From then on, the two countries’ affiliation was developed, covering trade and investment for the most part.
Most Japanese companies with outsourced BPO are in finance, accounting services, and IT support. The Philippines’ Department of Trade and Industry (DTI) and Japanese Embassy both revealed that despite the obstacles the two countries faced, particularly in 2011, Japan still became the fourth top investor in the Philippines with total investments of $1 million in 2012.
In 2013, Japan Credit Rating Agency said that the BPO industry is one of the major driving forces of the country’s account surplus. This was affirmed by the Tokyo-based R&I Ratings in 2014. Moreover, there are almost 70 Japanese firms that have already set up shop or outsourced some of their operations in the Philippines. It’s not only big Japanese companies like Toshiba, Fujitsu, or Epson but smaller Japanese companies are now also looking into this profit-driven business model.
Most of Canada’s investments from the recent years flowed into the BPO sector. In a workshop with Canada last 2014, DTI recommended the IT-BPO industry as one of the focus sectors for investment in Canada.
There are a few Canadian outsourcing firms in the country. One known firm has more than 3,000 personnel in a massive call center. The company originally considered India but selected the Philippines as their global outsourcing partner instead because the Indian market was already uptight during that time. The effective decision, which began in 2005, now has more than 40 clients which include several North American telecoms, cable, and online video game companies.
All these countries know that having a business relationship with the Philippines will help their companies grow bigger and better all the while staying longer. They also know that their investments are going to have a large ROI (return on investment) because Filipinos are great employees. They value their business’ partner’s time, energy and money.
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