framework Philippine BPO successful

The Framework That Makes Philippine BPO So Successful

The rapid growth of the Philippine BPO industry is mind-blowing. In the past, the Philippines is identified as an agricultural and tourism nation. As the millennium came in, BPO became a primary identifier of the nation.

What makes the Philippine BPO industry so successful? The answer is a framework that combines natural resources and team effort.

Talent, youth, and the economy as the foundation.

The country is in a unique position. While a lot of foreign currencies overpower the Philippine Peso, the Philippines coincidentally have an abundance of labor talent that could bolster any businesses’ human resource.  To save a lot of money without sacrificing labor talent, foreign businesses are quick to take advantage of the opportunity, as they started to outsource operations to the Southeast Asian nation.

As a country with high English fluency and high cultural affinity to western countries, Filipinos are perfectly capable of performing jobs offered by western countries like the United States.

Even with a gigantic labor force of more than 1.3 million, demand for BPO jobs continues to grow. Fortunately for the Philippines, youth is on their side. The country produces about 450,000 college graduates a year. With more than a decade of English learning under their belts, these young graduates are perfectly equipped to take on the demands.

The Philippines then began building a framework that revolves around this unique disposition.

Government support – the main pillar

Tax Incentive Outsourcing Framework

PH government incentives for BPO companies

In order to fan the flames of growth of the BPO industry, the Philippines granted BPO providers numerous tax incentives. These incentives added on the present economic advantages a weak Philippine Peso offers. These proved to be successful as 97% of BPO providers projected growth for their company over the coming years.

projected growth BPO companies

Projected Growth of BPO companies in the Philippines

Continuous Improvement

The Philippines is determined to stay at the top of the BPO food chain. Aside from making sure that the service quality is top-notch, the country has to be wary of emerging competitors, political threats, and AI automation. There is only one solution to address all these threats, make sure that Philippine BPO services are the best.

To achieve this solution the government and even the private sector formed initiatives that would further improve workers’ skills. There are countless education programs specifically targeting expertise-heavy industries where a human worker would most likely be preferred over automated software.

The country looks to conquer other sectors of the industry as well. Already the number one in the Voice sector and the top 2 for non-voice, the local BPO industry looks to conquer high-value areas like the KPO and Game Development sectors.

Sectors of Philippine BPO

Various sectors of the BPO industry

Involvement of the whole country

Initially, BPO centers are only concentrated in select areas in the country. As BPO demand grows bigger, it is apparent that expansion is a must. Two primary factors, talent ubiquity, and promising rural areas are driving infrastructure development outside the major cities.

Talent in the country is everywhere. While the majority of college graduates come out of Metro Manila, the provinces are producing their fair share of graduates.

number of provincial graduates

Number of provincial graduates

Development has already started in some of the rural areas. Promising locations are identified as Next Wave Cities. These Next Wave Cities will soon house major business hubs that could rival the traditional business centers in Metro Manila.

 Next wave PH cities

It might be coincidental that the Philippines have an extremely talented labor force and weak currency but it’s not accidental that the country became a global leader in the BPO industry. A carefully crafted framework and ample support both led to the nation’s success. The future looks bright and secure for the Philippine BPO industry.

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