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Outsourcing Strength for PH Economy

Posted on July 8, 2016

The Business Process Outsourcing is a progressive and fastest growing sector in the Philippines. It has the three subsets which are the Contracting, Business Process, and Service Provider. Contracting is a legal agreement for the two or more parties. Business Process a tasks that produce a specific service or product for a particular customers. Service Provider is organizing with consulting services to a supplier or a customer. BPO is known as offshore outsourcing that sent to another country. It is also known as the Information Technology – enabled service (ITES). A business practice that hired people from outside company to performed services that traditionally were performed within the company by the business own employees.

Growth of Philippine industry is increases every year.Economically, BPO industry has a fastest growing sector in the country and expected to overtake OFW remittances in 2017. However, a 2012 report by the Asian Development Bank notes that the growth in the BPO industry has barely trickled down to most of the Philippine population. The notes that there is only a weak link between the industry’s growths and the development of the country mainly because of the high unemployment and underemployment rates. ADB Philippine Country Senior Economist Norio Usi notes in the report that the industry only hires college graduates, leaving little to no chance for people with moderate skills and no longer college degrees to take part in the industry’s growth.

Outsourcing Opportunities

In Addition, BPO continued to grow and generate more revenue with the industry and they provide most job opportunities in the private sectors. It helps also to the Filipino people that are unemployed to have their jobs. Filipino people are also good in English-speaking and it is the reason that most of the Filipino people today work as a call center agents. The call/contact centers being the largest sub-sector in the Philippine BPO industry, has also a major subject case study on health and working conditions. Most of the employees experience back and shoulder pains several have complained about experiencing throat irritations due to dealing with multiple calls a daycoupled with a high stress work environment and concerns regarding the employees’ hearing being damaged due to most of these workers being exposed to higher noise levels,

More rapidly the Expansion of Filipino BPO industry will likely continue to improve the country’s GDP, employment and services also create a new opportunities to the young college graduates. The companies will benefits more religion and employment growth and improve infrastructure which the industry brings along. Lastly, the BPO industry should remain flexible in adapting to technological change. The threat of automation to simple labor intensive jobs such as data entry and medical transcription should encourage reflection on how to move up the value chain in the future.


Strengthen Alternative Income Sources, BPO;