Why is BPO the fastest growing industry in the Philippines?
The article discusses why BPO is the fastest growing industry in the Philippines.
Global outsourcing destinations offer a lot of benefits for businesses planning to outsource.
The Philippines is among the top choice of investors. In general, the Philippine Business Process Outsourcing Industry has demonstrated continued growth in the country.
The Philippines has in fact ranked 9th in the leading countries in offshore business services worldwide in 2021 with an index score of 5.96. The index score was based on the ff. criteria: Financial attractiveness assessment, People skills and availability assessment, Business environment assessment, ad Digital resonance assessment.
The Business Process Outsourcing (BPO) Industry in the Philippines began as early as 1992, when the first contact center in the Philippines was established.
Today, the Philippine BPO industry has over 1,000 companies, including both providers that cater to both the Small to Medium Enterprise/ Small-Medium Businesses (SME/SMB) and global markets.
Examples of established providers with offices in the Philippines are Accenture, Teleperformance, Concentrix and IBM Solutions Delivery. Business process outsourcing providers can have 500 to 5,000 seats, while established providers such as Accenture can have as much as 72,000 local seats or more.
The most offered solutions of service providers in the Philippines are telemarketing, customer service, customer experience, information technology and consulting services.
Revenue
In terms of revenue, the Philippine BPO Industry contributes nearly $30 billion to the economy each year.
A 2019 report from the World Trade Organization (WTO) states that the Philippine business process outsourcing industry accounts for a 7.3% contribution to the growth in GDP.
The Philippine Business Process Outsourcing industry highly contributes to foreign direct investment net inflows in the country. In fact, it is only second to remittances from Overseas Filipino workers (OFWs).
Despite the adoption of remote and hybrid work and the ongoing economic recovery from the Covid-19 pandemic, the Philippine BPO has maintained an observable continued growth.
BPO: Largest Employer in the Philippines
When outsourcing to the Philippines, you have access to a huge, highly specialized talent pool and a skilled workforce where you can find experienced outsourced staff to fill in roles.
There is a steady growth in the contribution of the IT-BPM Sector to the total number of employed workforce in the Philippines. The percentage of total employed workforce in the IT-BPM sector has grown to 4.1% in 2022, up from only 1.9% in 2010. (Frost & Sullivan analysis)
In 2021, the Philippine IT-BPM industry grew by 9.1 percent, or by 120,000 FTEs year-on-year, bringing the total number of IT-BPM workers in the country to 1.44 million FTEs.
The total IT-BPM FTE sector is projected to create an additional ~654k jobs between the end of 2016 and the end of 2022.
The projected headcount of the Philippine IT-BPM Sector this 2022 is expected to reach 1.8 million total FTEs or around 4.1% of the country’s total employment, up from 1.15 million Full-Time Equivalents (FTEs) in 2016. (IBPAP)
The following are among the list of Cross-cutting In-Demand and Hard-to-Fill Occupations in the Information Technology – Business Process Management (IT-BPM) Key Employment Generator (KEG):
- Accountant
- Animator
- Business Analyst
- Call Center Agent
- Computer Programmer
- Customer Service Associate
- Customer Service Representative
- Data Scientist
- Graphic Designer
- Human Resource Manager
- Information Technology (IT) Specialist
- Management Information Analyst
- Manager
- Medical Transcriptionist
- Real Estate Broker
- Software Developer
- Website Designer
- Website Developer
You can fill these in-demand Information Technology – Business Process Management (IT-BPM) roles when you outsource to the Philippines.
Upskilling is also regarded a priority and solution in a tight labor and fast-paced Philippine BPO market.
Aside from the growing workforce, the IT-BPM Industry in the Philippines also continually moves up the value chain.
According to Frost & Sullivan analysis, IBPAP & member companies data, the projected change in skills mix in the Philippine IT-BPM sector are the following: Low-skilled tasks have a Compound Annual Growth Rate (CAGR) of 4%, Mid-skilled tasks have a CAGR of 12%, and High-skilled tasks have a CAGR of 19%.
The Information Technology and Business Process Association of the Philippines (IBPAP) has released a target of 73% of the workforce to be employed in mid to high-skilled jobs, up from 53% in 2016.
Connext Global Solutions provides Quality Business Process Outsourcing (BPO) Solutions
Connext Global Solutions is a renowned Philippine business process outsourcing (BPO) provider that builds, trains, and manages highly functioning custom outsourced teams thus enabling client growth.
Connext Global Solutions offers industry-leading staffing solutions that helps manage a client’s team as if it was theirs and makes sure the performance matches or exceeds that of your local teams.
Industries Connext Caters to:
1. Healthcare Providers
2. Distribution
3. Telecommunications
4. Title and Escrow
5. Property Management
6. Accounting
7. Banking
8. Technology
9. E-Commerce
10. Retail
11. Construction
12. Professional Employer Organization
13. Insurance
Since 2014, the company has provided remote staffing and outsourcing services and enabled the growth to over 50 clients through highly talented remote staff, white-glove account management, work tools, operating facilities, systems, automation and targeted process improvement. is helping mid-sized businesses tackle the workplace shortage head-on with innovative remote staffing solutions.
The company experienced 71% growth in 2021, positioning itself as Leader in Customer Experience Co-Sourcing. Currently, the company has 400 employees and signed a lease for a 10,000 square ft. second building in the Philippines.
Partner with Connext and receive:
- Geographically diverse talent
- 100% virtual recruitment and employment process
- Productivity, utilization, and quality monitoring
- Dedicated account management
- Standing IT support
- Talent management and employee engagement
Build your Philippine outsourcing workforce with Connext Global Solutions today.
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