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The rapid growth of the Philippine BPO industry is mind-blowing. In the past, the Philippines identified as an agricultural and tourism nation. As the millennium came in, business process outsourcing has taken over the nation’s global identity.

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

Talent, youth, and the economy as a 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 on labor talent, foreign businesses quickly take advantage of the opportunity to outsource operations to the Southeast Asian nation.

As a country with high English fluency ratings and close cultural affinity to the west, 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 continue to grow. Fortunately for the Philippines, the 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 demand.

The Philippines has built a business process framework that revolves around this unique, highly competitive advantage.

Government support – the main pillar

Tax Incentive Outsourcing Framework

PH government incentives for BPO companies

In order to fan the flames of growth of its local BPO industry, the Philippines granted BPO providers numerous tax incentives. These incentives added on to the present economic advantages that the weak Philippine Peso offers. The effort 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 outsourcing food chain. Aside from making sure that their service quality is top-notch, the country is wary of emerging competitors, political threats, and AI automation. The main solution to address all these threats? Ensure that the Philippine BPO services remains the best.

To achieve this, the government together with the private sector formed initiatives to further improve workers’ skills. There are countless of education programs specifically targeting expertise-heavy industries wherein human workers would most likely remain more 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, Philippine offshoring centers are only concentrated in key city centers in the country. As the BPO demand grows larger, the need for expansion becomes apparent. There are two primary factors that are now driving infrastructure development outside the major cities: talent ubiquity and promising rural areas.

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

number of provincial graduates

Number of provincial graduates

Development has also started in some of the rural areas. These promising locations are identified as Next Wave Cities. They 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 has an incredibly talented labor force and weak currency but it’s not accidental that the country is fast becoming a global leader in the BPO industry. A carefully crafted business process framework and ample environmental support both led to the nation’s success. The future looks bright and secure for the Philippine BPO industry.

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