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Outsourcing BPO services to the Philippines, the global leaders

Outsourcing BPO services to the Philippines has become a norm ever since the Philippines has become the most sought-after destination for the world’s Business Process Outsourcing (BPO) industry. The retail BPO services in the Philippines contribute healthily to their economy, generating over $30 billion per year by various means. As per Gartner report, the BPO market is expected to grow at a CAGR of 9.1%, expected to grow from $196 billion in 2022 to $303 billion in 2027.  The Philippines, which has a market share of 10-15% in the global BPO industry, serves mainly the USA, Europe, Japan, New Zealand, and Australia. English proficiency, a courteous culture, and a strong educational system are great advantages of outsourcing BPO services to the Philippines. The IT and Business Process Association of the Philippines (IBPAP) had predicted the BPO talent pool to grow at a rate of 9.1% annually each year. The success is hugely due to the country’s competitive prospects, which comprise a large-scale skilled workforce, including a considerable segment of those proficient in English with their knowledge in areas such as customer service, IT support, and healthcare.

Why outsource to BPO industry in Philippines

The strong support system

A Statista report predicts the revenues to touch $0.96 billion by 2028, at a CAGR of 8.22% for the period 2024-28. The persisting optimism of the country as a provider of outsourcing services to the world’s leading economies is underlined by the different sectors that are expected to drive new BPO investments in the country.

The bouquet of services offered

The type of work performed by the BPO contact centres is varied and includes back-office operations (HR, Finance, IT), customer support, data mining, software development, etc. many roles of which can be done remotely. The pandemic was particularly harsh for BPO businesses as they had to swiftly adapt to the remote work mode. This turned out to be beneficial for Philippines as they found the model of work-from-home arrangement quite convenient and efficient.

The positive factors making the Philippines attractive

Several factors make outsourcing BPO services to the Philippines attractive, including supportive local laws like the DICT Act of 2015 for ICT excellence, the Data Privacy Act for international compliance standards, and economic incentives under the Special Economic Zone Act. Additionally, the Telecommuting Act and initiatives like the Next Wave Cities Program and BPO talent development efforts underline the government’s commitment to bolstering the industry. Despite potential global economic downturns, the Philippines’ BPO sector remains poised for growth, with 83% of providers expecting an uptick in the immediate future, indicating the country’s integral role in the global BPO landscape.

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Movate is your right partner for outsourcing BPO services to Philippines. Our innovative approach in customer support, established infrastructure and a competent team will assist take your business to the next level.

The upcoming challenges

Despite the fact that automation is both a risk and a chance, it is undeniable that wider adoption of artificial intelligence technology is inevitable. In such a scenario, the Philippines BPO industry is gearing up to face the challenges with the adaptation of latest technology and investments in upskilling, especially after Covid-19. Interestingly, TESDA (Technical Education and Skill Development Authority) is working on a survey which seeks to determine which necessary skills are needed for the short-term labour market. An evolving global market necessitates business upsizing and continuous learning and skill advancement within the sector to guarantee adaptability and relevance in the global market. Philippines is working hard to ensure that outsourcing to the Philippines is not impacted due to any new developments. Additionally, India and Costa Rica are also locations where quality BPO services can be outsourced to.

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