When it comes to outsourcing, the Philippines is one of the most notable countries, especially in the West. Its long history of colonization makes them compatible to work more with their Western counterparts while keeping the Eastern traditions and attitudes. This also helps the language and cultural barrier blur at the workplace.
Even during the COVID-19 pandemic, the Philippine BPO industry stood up to its challenges and adjustments with the new work-from-home environment. With this, many experts can see its potential to bounce back quicker and improve its economy.
This article tackles how the BPO industry contributes to the growth of the Philippine economy, the country’s emergence as the BPO capital of the world, and the future of outsourcing despite the major disruption to the world economy.
The impact of BPO in the Philippine economy
It can be noted that in 1992, the Philippine BPO industry was born employing nearly a million workers thus creating a ripple effect. In 2005 alone, it accounted for an average of 2.4% increase in the Philippine’s GDP. The succeeding year drew another milestone as the domestic economy grew by 5.4%. All these are due to the emerging BPO industry.
As years pass by, foreign investors moved into the Philippines. The Philippine Economic Zone Authority (PEZA) paved the way for a lower area and tax requirements to start such a business.
The Philippines as BPO capital of the world
In 2010, the country was named the BPO capital of the world – beating other countries such as India – one of the leading names in the industry. This can be attributed to the notion that Filipino BPO employees are good communicators and can easily capture the interest of customers from all over the globe. From medical transcription down to selling all other services, Filipino workers rake monumental figures. There is nothing that a Filipino BPO worker will do to help his company prosper. His being value and purpose-driven is the vital elements that make the Philippine BPO industry a boom.
In 2013, a staggering $13B or 1000% increase from $1.3B in 2004 was generated by the Philippine export industry due to the Business Process Outsourcing (BPO) powerhouse of the country. And the future is even brighter.
WTO recognition in the industry
The latest report of the World Trade Organization highlighted the contribution of the industry to the Philippine economy, most especially to its workforce. According to the 2019 report, the sector recorded a 7.3% contribution to the growth in GDP.
In the future, the BPO sector is expected to be more than a billion-dollar industry.
Bright future of the BPO industry
It is foreseen that as the BPO industry expands, the Philippine economy will also prosper. In the early months of 2018, the Philippines ranked third in the roster of the fastest growing economies in Asia. It can be noted that the country is sustaining its robust lead in ASEAN economies.
The pandemic may have brought the disruption and failures of businesses around the world, but not with the BPO industry. During the lockdowns, DoLE has reported a surge in remote hiring in the industry. This is due to businesses looking for ways to cut costs during the pandemic and turned to outsource as a solution.
With this, even the government shows its positive outlook on outsourcing as a way to bounce back in the coming years.
It is undeniable that there is a strong correlation between the country’s economy and its growing BPO industry. Any positive growth in the economy is tantamount to saying that business process outsourcing is one of the major reasons behind it. Read about the Strong Future of Outsourcing – white paper.
There is a brighter outlook for investors as they continue to build confidence in the Filipino workforce. It is always a win-win situation if the workers fuelling the business core are Filipinos. The blood of a hardworking BPO employee transcends in the multitude of every company’s desirable outcomes.
With a good economy, BPO plays a key role in and for it. For every successful BPO company, a Filipino worker must be working for it.