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Outsourcing News: The Future of BPO Industry in the Philippines

Posted on April 18, 2017

Outsourcing worries in US accounts disproved

The Philippines business-process outsourcing (BPO) industry is becoming a key developing industry. Many businesses are encouraged to outsource in the Philippines primarily due to the cheap labor cost, well educated young Filipinos with good English communications skills and high quality services. The Philippine Department of Trade and Industry (DTI) define business-process outsourcing (BPO) as the “delegation of service-type business processed to a third-party service provider.”

Because of its growing success and opportunities as of 2016 the BPO industry has currently employing about 1 million Filipinos all over the country and expected to increase  about 1.3 to 1.5 million  in the next three years. The BPO industry is being prioritized by the Philippines Development Plan for being an essential to the country’s ten high priority development areas.  Call Centers is the leading BPO sector in the Philippines and has overtaken India has the leading call center in Asia, and due to this the call center sector is expecting to continue its growing demands.

BPO industry:  Future Opportunities

The industry is planning to expand the area of services in the KPO (Knowledge Process outsourcing) sector which could cater and accommodate new business offers that can open new opportunities and cover a wide set of new roles or jobs like:

  • Market Research
  • Fraud Analytics
  • Equity Research and Investment
  • Banking Insurance
  • Actuarial Engineering Services
  • Web Design and Development
  • Data Integration
  • Project Management Research and Development
  • Legal Processes

The Philippine Business-Process Outsourcing (BPO) industry continues to shows improvements. Based on Statistics provided by the IT and Business Process Association of the Philippines (IBPAP),  the revenue of the Philippines have increased from US$ 1.3 billion in 2004 to the total revenue of US$ 25 billion in 2016.

Source:

Business Process Outsourcing in The Philippines, ASEAN Briefing