BPO (Business Process Outsourcing) in Philippines is gaining huge popularity especially in the area of call center automation. Nowadays, many offshore service providers are establishing their operations in the Philippines mainly because of the growing trade deficit between the two countries. Many countries are outsourcing their back office functions such as call center, financial services, and other administrative support services. This is due to the fact that these countries have a growing population which enables them to increase their sales and generate more revenue. They are also looking for cost-effective ways in which they can maximize the productivity in their respective companies.
Nowadays, the Philippines is becoming an important hub for offshore BPO activities. The main reason why BPO Philippines has become popular in the Philippines is its proximity to US and Indian companies. A large number of service providers from US and Indian origin established their Offshore Call Center businesses in the Philippines in the recent years. As a result of this, the Philippines is now emerging as one of the top choice for outsourcing projects from third world countries. Business process outsourcing (BPO) in the Philippines targets various business verticals such as Customer Service, Information Technology, and finance offshore outsourcing.
According to a latest report by EYELISS, a leading global market analysis company, the Philippines is emerging as the most preferred location for BPO activities with an estimated investment of $2.6 billion. With a population of over 101 million, the Philippines has one of the fastest growing populations in the world. As a result, the country has a large percentage of its total population that is fluent in English making it a natural location for BPO activities. Another contributing factor for the growth of the BPO industry in the Philippines is the increasing demand from developed nations for outsourcing services. In fact, according to a report published by Frost & Sullivan, a global management consulting firm, the Philippines is projected to experience the highest rise in BPO activity from developed countries such as the US and UK over the next five years.
The growth of the BPO industry in the Philippines is driven by factors such as the Philippine government’s willingness to promote the growth of the economy by attracting investments, the growing domestic market for BPO activities, and the increasing need for BPO services in the country. As a result, the government has encouraged business establishments in the country to build headcount in order to increase the country’s presence in the BPO industry. Headcount has also been encouraged by offering attractive package offers to corporations on behalf of the government. For instance, the Government of Philippines has offered tax holidays to businessmen who invest in BPO activities in the Philippines. Aside from these incentives, the government has also taken measures to reduce costs and expenses in order to improve the efficiency of the BPO industry in the Philippines. To achieve this end, the Department of Budget and Management has formulated a program called the Re-exam of Budget Analysis for 2021 wherein it aims to reduce expenses and streamline the processes in the entire budgeting procedure.
One of the significant developments in the BPO industry in the Philippines is the introduction of call centers in the country. Call centers are establishments that provide services like telemarketing, customer support, technical support, and data entry by using voice-based technologies. In response to the rising demand for such services, many companies have established call centers in the country. The availability of high quality employment and the lower cost of living in the Philippines make it an ideal destination for outsourcing BPO tasks to other countries.
Another important development in the BPO industry in the Philippines is outsourcing call center support to offshore outsourcing providers. To be able to cut down costs, many companies have decided to outsource their call center support to foreign companies which are cheaper compared to local companies. This has resulted to a diversification of the BPO industry in the Philippines, making it a lucrative outsourcing destination for BPO activities. The growth of the BPO industry in the Philippines can be attributed to the upskilling programs promoted by the government and the high standards set by international organizations.