Philippines Still Under the BPO Limelight

BPO LimelightAside from the renowned array of athletes in the field of boxing and billiards and beautiful vacation destinations, the Philippines has become a sought-after location in the field of outsourcing and offshoring.

Ranked 2nd in the offshore Business Process Outsourcing (BPO) services globally, the Philippines is now waging war to gain a greater market share and snatch the top position from the outsourcing giant in Asia, which is India. No need to mention this, this is between the Philippines and India’s battle for BPO supremacy.

Analysts continue to project the affirmative growth of the outsourcing industry in the Philippines. Even foreign outsourcing officials claim that the Philippine BPO industry can generate $100 billion revenue by 2020 if the country will continue its talent development along with the increasing value for of chain services.

Dr. Ganesh Natarajan,Zensar Technologies’ Vice Chairman and Chief Executive, said that the Philippines has the potential to acquire a bigger market share on the BPO industry in the next 10 years if the country will maintain its capacity to supply the necessary BPO skills to the industry’s growing demand. The potential of the country to expand its services from the present voice and contact centers to the Knowledge Process Outsourcing (KPO) is viable considering the capacity of the Filipinos to provide analytical and logical products.

Language and Cultural Familiarity Advantage

The outsourcing industry in the country employs around 200,000 people. This number of employees is way behind India’s 750,000; however, the Philippines’ capital city, Manila is catching up fast. Other key cities cited as “the next new wave cities” are also gaining fast recognition from foreign investors and outsourcing companies. Economists and analysts are all amazed with the Philippines’ runaway growth in the outsourcing sector.

This fast-paced growth can be attributed to the availability of English- speaking individuals who are adept and able to cope up with the continuous trainings rendered by different companies. Being under the American regime for several years had proven to be beneficial; the country has developed a cultural affinity to the US.

Moreover, the Filipinos are familiar with the US legal system and laws. The legal system of the Philippines is based on US law, and there are certain similarities in the makeup of the services. This is an advantage that the legal outsourcing industry is able to secure against India and China.

Availability of High-Quality Manpower

Aside from the available manpower, the country also possesses a huge pool of talented and specialized professionals. The expansion of the outsourcing and offshoring industry in the Philippines can also be attributed to the transition of the industry from traditional low-value-added call centers to higher end outsourcing such as legal services, medical transcription, web design, software development, animation, and other shared services. Due to this transition, the country was able to utilize its available professionals especially in the field of medicine and engineering. Although call centers still hold the major share in generating revenue for the outsourcing industry, the pool of creative design talents along with the huge number of medical professionals, lawyers, designers, and accountants are creating a huge impact in the remaining share.

Strong Second

Recently, in an awarding ceremony conducted by the National Outsourcing Association (NOA), the Philippines gained the title as “Offshoring Destination of the Year.”

De Luzuriaga said that in the next two years, BPAP will be grooming the 50 next wave cities like Davao City, Cebu, and Iloilo to be able to generate about 1 million BPO jobs nationwide with projected revenues ranging from $11 billion to $13 billion.


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