The business process outsourcing (BPO) industry has been playing an important role in the Philippines economy for the past decade. This industry provides different outsourcing services in various sectors such as information technology, finance, business and many others. Since then, it has been one of the sources of foreign currency earnings and overseas investment. It has also brought tremendous growth on revenues and employment has expanded as well.
Moreover, the Philippine government is expecting to escalate its revenues nearly to $15B by the year 2016. This would be generated from call centers alone. Here are what’s in store for the BPO industry in the Philippines in 2015:
Philippines to outdo Indian BPO/KPO
The Philippines is anticipated to surpass India’s BPO industry by 2015. With building steam off of its advantageous number of workforce and English-proficient graduate population. Dubbed as the call center capital of the world, the Philippines’ expansion on technical education opens more doors for KPO. Including more professionals into the mix like animators, software developers, health IT service providers, CPAs, etc. More here.
PH government likely to increase support to BPO industry
Recognizing the significance of the call center and voice sector in BPO operations, the government has already expanded its training programs through the Training for Work Scholarship Program of Technical Education and Skills Development Authority (TESDA). This is in order to hone a more competitive workforce. With the rise of demand in technical skills across the country and the world, it is likely for TESDA to open new programs to cater to this requirement. Learn more about the TWSP here.
Rise of more next-wave cities
Last year, next wave cities Bacolod, Baguio and Iloilo moved up several notches in the latest ranking of BPO destinations by consultancy firm Tholons Inc. With the continued development of other next-wave cities, it’s likely for other cities such as Davao and Clark to join the ranks while Cebu is expected to move up in the rankings as it attracts more investors due to its existing infrastructure and labor force. More info on the top 5 next-wave cities here.
BPO sector continues high takeup of PH office space
BPO will be an even more important growth driver, and it is one of the sectors expected to take most of the upcoming leasable offices in the CBDs. For 2015, majority of locators will be concentrated in Fort Bonifacio City, since Makati and Ortigas are near saturation, though other popular BPO hubs such as Quezon City and Alabang will still receive a share. Full details on the 2015 Outlook here.
PH is on track towards a solid 10% IT-BPO global market share
The government’s target by 2016 is to increase revenues in IT/BPO to US$25 billion. As the country hits its sweet demographic spot, improves its doing business index, all while remaining as one of the best value BPO destinations in Asia, a 4 percentage points increase in market share or a 10% global market share is not too far off. More info on the IT-BPO roadmap here.