Outsourcing, the Philippines, and the Future

The Philippines is one of top countries when it comes to business process outsourcing companies or BPO companies. First-world countries like the USA, France, and Australia are some of the biggest patrons of the BPO industries services. This makes our top rating quite a big deal for the country. But what is it with this industry that makes it such a hit with well-developed countries? More importantly, what could be lying ahead for the industry?

The Statistics

Asean Briefing reports that the surge in the local BPO industry’s development is due to the country’s relatively low cost of living. Other factors cited are the young, educated, English-speaking Filipinos who make up the workforce.

This ultimately made international reports cast a majority vote that the Philippines is the next up-and-coming top outsourcing choice. The Philippines even replaced Mumbai, one of the oldest and top go-to sources for BPO needs, as the 2nd ranking BPO service provider in 2015.

The industry is currently responsible for 9% of the country’s GDP growth. It is currently employing over 1 million Filipinos. But such number is projected to increase, with an expected 1.3 to 1.5 million more to be employed over the next three years.

The Benefits

Constant patronage of our BPO industry’s services by well-developed nations could only be credited to the numerous benefits.

Cost Effectiveness

BPO service companies are often technologically updated. with experts ready to lend their specialization to companies. Their services cost less expensive. This is if compared to hiring and paying salaries to in-house employees.

Aside from these lower rates, the vendee company won’t have to worry about providing additional space.

Better Focus on Business

Vendee companies can now focus on more “core” business matters. They no longer have to worry about who’s going to do what. No need to be anxious about how they’re going to improve their customer service, for example. Instead, a business owner can concentrate on strategizing for their next campaign or on how they can improve their product/service.


The cost-effective services these BPO service companies aren’t just about getting the job done. Part of their services include constant adaptation to evolving technologies and consumer demand. With their always up-to-date knowledge, skills, and tools, vendee companies can be assured that the service they’re getting is the latest.

Things to Consider Now

It’s been made clear; the BPO industry is a blessing to businesses. With all its positives, though, come some not so favorable thoughts to consider.

Changing Socio-political Landscape

The USA, one of the BPO industries biggest patrons. The country has changed administration and current president Donald Trump’s “Buy American, hire American” platform may endanger the current flourishing of the outsourcing industry.

Trump wants what offshore services formerly provided to be handed over to American workers. Foreigners who want to provide offshore based services now have to acquire specials visas.

As for the local BPO scene, President Rodrigo Duterte has been very vocal about his stance on lessening the presence of the US in the country. Given that the US is our biggest source of BPO-generated income, 64.7% as of February 2017, having to cut or at least lessen ties with them will undoubtedly impact the Philippines’s status as a top investment destination.

The country has definitely got a strong hold on BPO clients, and as things continue to change in an ever-evolving world, business process outsourcing companies can only be optimistic in what lies ahead for the industry. For now, the best step BPO companies can do is to continue to provide the services that catapulted the Philippines into success.