5 Key Factors that Contributed to the Growth of BPO Industry in the Philippines

The Philippines has emerged as a top Business Process Outsourcing industry. Over the years, the BPO industry in the Philippines the country has surpassed its competitors like Malaysia, India, Indonesia, China, Myanmar, and more. Today, big and small companies, all rely on Filipinos back-office services, customer support, creative services, IT support, software development and most importantly contact centers. 

There are many reasons why companies prefer call center outsourcing, especially to the BPO Philippines. Outsourcing outbound call center services, as well as inbound call center services, are the latest trend that entrepreneurs have complete faith in. For many companies, this strategic move comes only after their customer base has increased significantly. By partnering with offshore BPOs, the businesses are able to reduce the burden of essential yet redundant task like documentation, data entry, customer inquiries and more. Callcenter outsourcing is one of the most important segments of the Philippines BPO industry. Without setting up an additional department, outsourcing call center services in the Philippines has numerous benefits. Here are some best reasons why businesses prefer outsourcing inbound and outbound call center services to the various cities of the leading offshore call center destination like Manila, Cebu, Clark, Davao City and more. 

1.    Low-Cost Operations: One of the top reasons why call center outsourcing is a rising trend because it reduces operation cost massively and enables businesses to save more money. The Philippines offer low-cost labor and quality services. When compared to western countries, the salary offered to the employees of outbound and inbound call center services is much lesser. Additionally, the operational cost is also significantly lower than the companies located in Latin America, Europe, and other places. This means outsourcing contact centers in the Philippines give companies opportunities to save money and maintain their capital. 

2.    Efficient Communicators: Filipinos are considered great communicators because they are proficient in verbal and written English. They not only have excellent English language communication skills, but they also possess a neutral accent. This means that they speak English without any accent. This is exactly why British and American companies prefer hiring Filipino call centers as it is easier for Westerners to communicate with them. They are confident and fluent in the English language and can carry out effective communication.

3.    Support from the Philippines Government: In less than two decades, the Philippines has risen to become the leading BPO industry, globally. None of it was possible without government support. The Philippines government has offered generous support and initiated programs to encourage the growth of the industry. The government offers tax incentives, and training programs to encourage foreign investments. Over the years, the industry has become to one of the biggest contributors to the economy. Forecasters have predicted constant growth for the industry until 2020.

4.    Educated and Skilled Professionals: Besides speaking excellent English, the Philippines boasts of the talented and highly educated young crowd, ready to be employed. With a high literacy rate, the universities across the countries offer programs that provide knowledge and skills required for inbound and outbound call center service companies. Therefore, many businesses want to partner with call centers located in the Philippines.

5.      Apart from these reasons, the Filipinos are respected for their world-class work ethics and hospitable attitude. At the same time, the companies established here offer state-of-the-art technology that is key for a successful business venture. The quality of service provided by these offshore partners is excellent. It helps the businesses in the BPO companies in the Philippines to focus on achieving their core missions and goals.

A Detailed Analysis of The Philippines BPO Industry and Outsourcing Call Center Services

Asian countries have taken over the BPO industry of the world. India, Indonesia, Bangladesh, Korea, China and many more are much-preferred outsourcing destinations and call center service providers for the companies from USA, UK, and Europe. While India remains the pioneer in the industry, the Philippines has grown to become the leading country in the industry worldwide. The Philippines call centers are not only the major contributor to the global market but also in the country’s economy. 

 Reasons Why The Philippines Is Leading BPO Industry

The call center services in the Philippines and the BPO industry of the country remains a dependable source of income for many Filipinos graduating every year. At the same time, the government support and initiative programs for the promotion of the industry make it a favorable destination for the business. Meanwhile, strong work ethics, neutral accent, good knowledge of the English language, and friendly and effective communication skills of the Filipinos makes them a highly qualified workforce.

What works more in the favor of the industry is the location. The Philippines is located at the center of Asia, providing easy accessibility to the investors. Thus, making it an ideal destination for outsourcing business. Lower operational and labor costs remain the number one reason why foreign clients are attracted to The Philippines.

Brief History of Business Process Outsourcing in The Philippines

In the last two decades, The Philippines grew to become the location of choice for business outsourcing. From providing basic services like email response and service management, the country broadened its industrial capabilities for almost all types of BPO services and IT support.

The history of outsourced call centers services in the Philippines can be traced back to 1990s. It was only in 1992, a man named Frank Holz founded the first contact center of the country with the name Outsource2Philippines, Inc. This was the first step in the evolution of the massive industry. At the time, call centers were serving their offshore partners with basic services like email response and managing service. It was not until 1997, the country got its first multinational account. In 1999, the first call center company opened and gradually the industry expanded its services.

Business Process Outsourcing in The Philippines was acknowledged as “Sunshine Industry.” The 2000s witnessed massive growth for the industry. In 2008, the Philippines surpassed India and became the Capital of Call Center global Industry.

Current Scenario

Currently, call center services in The Philippines is making it big in the industry. As a part of the global outsourcing industry, The Philippines BPO industry continues to grow by leaps and bounds. It continues to dominate the market by contributing 16 to 18 percent of the total outsourced services globally. As of November 2017, the BPO industry provided employment to 1.15 million people. As for the industry, it grew 12.3 5 in 2017 from 2016. In the last decade, The Philippines BPO industry has become the largest source of private employment as well as the second largest contributor to foreign exchange earnings.

The Future  

The BPO industry along with the call center services in the Philippines are predicted to remain at its highest peak. This year, the industry is forecasted to add another $1 billion in revenues and create 70,000 more jobs. By 2020, the BPO industry’s total income is expected to reach $40 to $55 billion and create a total of about 1.3 to 1.5 million new job opportunities. The annual growth of the industry is expected to rise at the rate of 17% until 2022 when the growth is expected to slow down to 9%.

Business Process Outsourcing in The Philippines has come a long way. From providing simple contact center services, the industry has expanded massively. The industry has developed into a giant that consists of eight sub-sectors including, call centers, back-office services, knowledge process outsourcing, animation, software development, game development, medical transcription and engineering design and the offshore outsourcing companies provide services namely, data entry services, creative services, multilingual services, finance and accounting services, managed operations, NOC outsourcing services, Wholesale Telecom outsourcing, VoIP technical support, helpdesk outsourcing services,  and all types of customer relations services, business-to-customer support, and business-to-business support.