The Philippines Department of Trade and Industry (DTI) defines Business Process Outsourcing (BPO) as the “delegation of service-type business processed to a third-party service provider”. The industry covers contact centers, back-office services, data transcription, animation, software development, engineering development, and game development.
The Philippine BPO industry is considered one of the top two economic pillars of the country, the other being remittances from Filipino overseas. It is considered world-class, offering top-quality services, keeping costs low and enjoying strong government support including tax incentives and stringent regulations on data privacy & security. Over 1.2 million Filipinos work in BPOs, and the industry recorded a revenue of $26.7B in 2020, 1.4% higher than 2020 revenues despite the pandemic.
Tholons, the leading advisory firm for global outsourcing and investments, rank India and the Philippines as the top two countries for business process outsourcing. The criteria includes quality of the workforce and digital competitiveness. The Philippines had surpassed India as the top destination for contact centers. Based on World Bank data, the country has a literacy rate of 96%, significantly higher than India’s 74%. Moreover, Filipinos speak English very well and has a neutral accent, which works great for voice-based services such as call centers and virtual staffing. A young, well-educated and digital-savvy workforce ensure a steady stream of talent.
To continue its growth trajectory, the industry must focus on upskilling & evolution powered by technology, as the future of the sector will be shaped by automation, robotic processing and chatbots.
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