2020 is a unique and challenging year for the Philippine BPO market.
The ongoing global health crisis does not only test the resiliency of Philippine outsourcing companies but also altered the plans and projections set to strengthen the presence of the BPO industry in the country.
Despite the challenges brought by this pandemic, the business process management industry remains a pillar of the Philippine economy.
In this article, we rounded up all essential statistics and information about the Philippine BPO industry which you can use in your outsourcing decisions.
First, let’s take a quick look at last year’s figures.
The largest employer in the Philippines
The IT & Business Process Association of the Philippines (IBPAP), the enabling association for the country’s IT-BPM sector, collaborates with various government and private organizations to facilitate upskilling programs that would keep Filipino workers relevant and thriving to the global market.
The forecasted growth rate of PH IT-BPM services (2019-2022)
The Philippine IT-BPM industry experienced sluggish growth due to the following reasons:
Based on the Growth Forecast Executive Summary released by IBPAP, the headcount rate of the industry has the potential to grow by 4% from 2019 to 2022. The revenue growth, meanwhile, is also expected to increase by 4%.
The animation and game development subsector has the highest projected growth among the subsectors in the IT-BPM industry. It is expected to grow its revenue from 7.3% to 12.3% and its headcount by 6.8% to 11.7%.
The healthcare industry is also seen to have a faster growth rate from 2019 to 2022.
For the complete information, see the table below.
|Subsector||Headcount growth rate||Revenue growth rate|
|Contact Center and Business Processing||2.8% – 6.7%||3.3% – 7.4%|
|Information Technology (IT) and Software||2.7% – 6.2%||3.2% – 6.7%|
|Global In-House Centers (GIC)||2.7% – 4.7%||3.2% – 5.2%|
|Healthcare Information Management||6.8% – 10.2%||7.3% – 10.8%|
|Animation and Game Development||6.8% – 11.7%||7.3% – 12.3%|
|Overall IT-BPM||3.0% – 7.0%||3.5% – 7.5%|
The study conducted by the Everest Group revealed that the growth of the Philippine IT-BPM sector depends on several factors and programs such as:
According to the latest data provided by IBPAP CEO Rey Untal, the IT-BPM industry generated $26.3 billion in revenues. This is 7.1% higher than the previous year.
Meanwhile, the contact center subsector alone contributed $13 billion in revenues. It also employs the highest number of professionals in the BPO industry.
The ill-effects of COVID-19 have left most SMEs cash-strapped. Some struggled to survive, while some have taken the challenge to ride the tide of change brought by this pandemic. Larger businesses with bigger cash buffers, on the other hand, also experienced a sharp drop in revenues. This is especially true for businesses under the travel, hospitality, and tourism industries.
The decline in demand directly affects the BPO industry in the Philippines. Some clients pulled out their accounts, leaving employees on floating status.
While these challenges delay the growth of the outsourcing market, many Philippine BPO companies still stand strong.
Check out the BPO industry in the Philippines Statistics for 2020.
The economic growth of PH IT-BPM industry
Contribution to the PH Economy
(Source: IBPAP Brochure)
Effects of COVID-19
Basic protocols implemented in BPOs
The Department of Industry (DTI), along with the Bureau of Working Conditions of the Department of Labor and Employment (BWC-DOLE), released this interim guideline on workplace prevention and control of COVID-19:
Magellan Solutions, a call center company in the Philippines, “enforces a very strict and top-down approach in following safety protocols by all employees of the company starting from the top.”
According to the company’s CEO Fred Chua, “Magellan has gone several steps over to ensure safety amongst its employees by implementing UVC sanitation in all rooms, wipe downs of workstation cubicles, installation of air filtration systems, and Rapid COVID testing for returning employees and new hires. All of these efforts are on top of government-mandated safety measures of temperature checks, alcohol dispensers, shoe bleach pads, masks, and face shields for its employees.”
He also added that the IT team of the company implements strict security measures in deploying PCs with security software for work from home employees.
Magellan Solutions sets this example to prove that even a small BPO company can survive in these tough times. International clients who plan to outsource to the country can be confident of the services provided by Philippine BPO companies.
2020 may be a challenging year for the BPO industry. However, even a global health crisis can’t stop its growth. In the coming years, it will continue to provide jobs to millions of Filipinos and contribute billions of dollars to the country’s economy.
Employee attrition is one of the biggest challenges in BPO companies.
The latest data revealed that the attrition rate in the IT-BPM sector is 50%. This figure is 38% higher compared to the average turnover rate of US companies at 22%.
BPO turnover and retention statistics
Among the reasons why BPO employees resign are the following:
To minimize the attrition rate, Philippine BPO companies put more effort into improving their company culture. They also offer attractive perks and benefits such as access to the gym, free snacks, flexible working hours, and incentives for top performers.
Benedict Hernandez, chairman of the Contact Center Association of the Philippines (CCAP), said that the BPO roadmap to 2022 is looking bright. Local information technology-business process management (IT-BPM) is projected to have almost $40 billion in revenue after six years, at the end of 2022.
Published guides for the Animation and Game Development, Contact Center and BPO, IT & Software Development, and Global In-House Centers operations subsector were mentioned in the new Roadmap.
With that, BPO employees need not worry because the Philippines will not fall behind the list of countries that rule the BPO world. More and more companies will invest and that means there will be more jobs available.
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