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The Philippines is one of the most well-known outsourcing spots in the world, particularly in the West. Sustained resilience against COVID-19 challenges presents an opportunity for the Philippine BPO industry to bounce back quicker and support the country’s economy. Because of the country’s long history of colonization, they can collaborate more with their Western counterparts while maintaining Eastern traditions and attitudes. This also aids in the obliteration of language and cultural barriers in the workplace. This article discusses how the BPO business contributes to the Philippine economic growth. The country’s rise as the world’s BPO capital, and the prospects of outsourcing despite the global economic downturn.
The economic impact of BPO in the Philippines
It should be remembered that the Philippine BPO sector began in 1992, employing over a million people and causing a ripple effect. It was responsible for a 2.4 percent rise in the Philippines’ GDP in 2005 alone. The domestic economy increased by 5.4 percent the next year, marking another milestone. All of this is attributable to the nascent BPO business.
As time passed, international investors began to flock to the Philippines. The Philippine Economic Zone Authority (PEZA) has made it easier to launch a business by lowering the space and tax requirements.
Philippines: BPO Capital of the World
In 2010, the country was crowned the world’s BPO capital, knocking out countries like India, which is one of the industry’s top names. This is due to the perception that Filipino BPO workers are excellent communicators who can quickly pique the attention of clients from all around the world. Filipino laborers make massive sums of money in a variety of fields, from medical transcribing to selling all other services. A Filipino BPO employee would go to any length to ensure that his firm succeeds. His ability to add value and be purpose-driven is one of the key factors driving the Philippine BPO sector forward, contributing significantly to the country’s economy.
The Philippine export sector produced a stunning $13 billion in 2013, a 1000 percent growth from $1.3 billion in 2004, because of the country’s Business Process Outsourcing (BPO) powerhouse. And the future seems much more promising.
WTO recognition in the industry
The significance of the sector to the Philippine economy, particularly its workers, was recognized in the World Trade Organization’s most recent report. The industry contributed 7.3 percent to GDP growth in 2019, according to the 2019 report.
The BPO business is anticipated to grow to be worth more than a billion dollars in the future.
Promising future of the BPO industry
It is expected that as the BPO business grows, so will the Philippine economy. In the first few months of 2018, the Philippines was rated third among Asia’s fastest-growing economies and continues to have a strong lead in the ASEAN economy.
Although the epidemic caused disruption and failure in businesses all across the world, the BPO industry was spared. During the lockdowns, the Department of Labor and Employment (DoLE) observed a spike in remote hiring in the industry. This is because during the epidemic, businesses were searching for ways to save expenses and looked to outsourcing as a solution.
Even the government is showing its optimism about BPO as a strategy to support economic growth in the future.
Business Process Outsourcing in the Country
The country’s economy and its burgeoning BPO business are inextricably linked. Any positive economic growth is akin to claiming that business process outsourcing is one of the primary causes.
Investors may expect a better future as they continue to invest in the Filipino workforce. When the workers that power the business core are Filipinos, it is always a win-win situation. A dedicated BPO employee’s blood runs through the veins of every company’s desired objectives.
BPO plays an important role in sustaining a healthy country’s economy. A Filipino worker must be employed by every successful BPO business.
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