Philippines' BPO Industry: In 2019 and Beyond

Currently, in the Philippines, BPOs employ over 1.2 million employees and companies based in the United States are the leading user of BPO services in the Philippines

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The world is changing at an unheard of rate. What worked fifty years ago is no longer working for companies and customers alike. Companies are starting to think outside the box because the box does not satisfy the basic needs anymore. Technology is changing the economy.


Technology is creating opportunities for companies and entrepreneurs to expand their horizons past anything possible just a few years ago.

The Background

Western countries have been sending positions overseas creating more jobs and optimizing efficiency while cutting costs. Many countries have risen to the occasion. They have created industries based around this need for outsourced positions. The Philippines have become the world's largest destination for business processes outsourcing (BPO), and they are the industry's leader for contact centre outsourcing. They have worked diligently for the last two decades to provide the much-needed services for countries across the English speaking world. As companies look to grow their business, they look outside their own country to the Philippines as a reliable and quality destination for their BPO.

The Business

The Filipino BPO industry is a multi-billion dollar industry. It has grown exponentially in recent years, and it is projected to double again by 2020. This growth can only be attributed to the quality of the services they are providing and the work ethic of the employees. Currently, in the Philippines, BPOs employ over 1.2 million employees. Companies based in the United States are the leading user of BPO services in the Philippines. They account for 60per cent of all BPO services provided. Australian companies are the second largest market with the United Kingdom coming in a close third. English speaking clients have to lead the way in outsourcing their business services, back-office services, and contact centres. Multilingual services are quickly growing in popularity.

Various Angles

The Philippines has a close cultural affinity to the West. There is a huge relationship between the United States and the Philippines. As outsourcing continues to grow in popularity for Western countries the cultural ties continue to strengthen and deepen. The two cultures begin to mesh and have similarities. Culture has an enormous impact on the success of outsourcing. When outsourcing, if the BPO destination does not understand the culture, there will be a lot of difficulties in the migrating process. The Philippines has built a reputation on having a deep understanding of Western countries, the United States in particular. This makes the migration and transition smooth creating cohesion between the company's home base and its outsourcing destination.

Filipinos have a very high literacy rate. The entire population has a 96.3 per cent literacy rate. The Philippines has recognized the necessity of English language proficiency and pushed the language as an essential skill for their workforce. This has helped create a large group of people with outstanding English proficiency. This is necessary for the BPO industry.

The bottom line for companies is an incredibly important part of running a business. Cutting costs wherever possible is an important aspect of running an efficient business while maintaining quality and productivity. There is a drastic difference in the cost of labour between English speaking countries and the Philippines. This is due to the differential in living expenses. Outsourcing call centres, back-office services, and more can cut company costs drastically. Migrating services gives companies flexibility which was impossible thirty years ago.

The Philippines has become a business processes outsourcing destination for companies across the world. Companies in English speaking countries have been utilizing Philippine-based outsourcing providers for over two decades because they have proven themselves to be powerful, efficient, and provide a quality product. Outsourcing is a serious thing to consider, but it can make a huge impact on the future of a company. Cost is an important aspect of the migration decision, but it is so much more than that. Maintaining quality and efficiency is just as important in a world where customers have access to many options. The Philippines provide the best services available helping companies to gain new customers, keep current customers, and turn customers into loyal patrons for years to come.