When talking about the Philippines, it is almost difficult to avoid mentioning its successful BPO industry. Since 1992, it has become one of the major contributors to the country’s GDP, second only to remittances brought in by overseas workers. However, advances in technology have seen a rapid upswing for the Philippine BPO industry. Companies from all over the world see the Philippines as the best solution to their BPO needs.
With major support from the government, growth in the Philippine BPO industry is projected to continue in the coming years. Whether it’s for offshoring or outsourcing, now is the perfect time to consider it as a viable business decision.
The Constantly Expanding BPO Industry
2016 was a strong year for the Philippine BPO industry. It created 1.3 million new jobs and it experienced a 17% annual growth. Although the Donald Trump presidency brought uncertainty at the start of the year, its growth has carried over into 2017. Experts have projected an optimistic 6.7% growth as the industry would continue to gather strength.
There are a few reasons for this. For one, the reduced labour costs in the Philippines have been a strong selling point of the industry for many years. However, many companies also discover the level of talent that Filipinos can bring. The BPO industry – particularly offshoring – employs highly skilled labourers that are capable of taking on mid to high-level functions. This has brought in even more savings and more freedom for companies to take on other priorities they wish to explore.
The BPO industry’s growth is now also being felt in locations outside Metro Manila. Provincial areas like Cebu and Davao are fast emerging as areas of development for the industry. Metro Manila still remains the most prime location for an offshoring or outsourcing strategy due to its priority access to all the latest technologies. Regardless, this nationwide growth can only benefit the Philippines greatly.
Overcoming Growing Pains
Of course, this pace of growth isn’t without problems. The BPO industry has been stigmatized with being an industry full of companies difficult to work with. The output quality is also not as expected, with many becoming dissatisfied with the strategy. It’s true that the offshoring will have drawbacks. No strategy is perfect, which is why proper research and implementation is important. When paired with the right offshore provider, you will be able to a wholly positive experience that becomes beneficial in the long run.
Recent events in the Philippines have also been a source of jitters for many foreign companies. However, Metro Manila has proven to be a safe location for both locals and foreigners, with some expats calling the Philippines their second home.
The Bright Future Ahead
Earlier it was stated that the BPO industry is one of the major contributors to the Philippines’ GDP. Experts predict that by 2018, it will outpace overseas remittances and become the number one source of revenue for the country. It is also expected to grow 9% annually for the next five years. By then the industry is set to be bringing in over 7 million new jobs and $40 billion in revenue.
For those in the industry, there is much to be excited about. As global communication barriers start to lessen, the easier it becomes to consider offshoring for your business. With a presence in the Philippines, you will be able to address all your business objectives and explore new ones through offshoring. As a proud member of the IT and Business Association of the Philippines (IBAP), Diversify knows how to leverage an experienced and talented offshore team. We have always believe it is a future business trend as more companies favor its cost-effective approach.
It’s never too late for your business to begin its offshoring strategy. Contact us today to start leveraging an offshore team for your business.