How business process outsourcing affects the lives of Filipinos and the economic status of the Philippines?

How business process outsourcing affects the lives of Filipinos and the economic status of the Philippines?

BPO is a powerful force currently driving the Philippine economy. It has created a ripple effect in many aspects: Export growth: Philippine merchandise exports increased by 7.6%, amounting to $51.99 billion. Employment generation: As of 2012, there are 493,000 Filipinos employed in the contact industry.

How many Filipinos are in the BPO industry?

1.3 million Filipinos
It is estimated that 1.3 million Filipinos were employed in over 1000 BPO companies in 2019, and that figure is showing 8-10% growth every year. It is estimated that the country holds 10-15% of the global BPO market.

What is the current status of the BPO industry in the Philippines?

In terms of revenue, the Philippine IT-BPM industry reached US$26.7B in 2020 and there is still potential for the industry to reach US$29B by 2022, despite the effects of the COVID-19 pandemic.

What business processes are usually outsourced in the Philippines?

Here are the types of business processes commonly outsourced to the Philippines:

  • Call Center Services.
  • Data Entry Services.
  • Human Resource (HR) Services.
  • Information Technology (IT) Services.
  • Financial and Accounting Services.
  • Healthcare Services.
  • Banking and Finance Services.
  • Digital Marketing Services.

Why BPO is important in the Philippines?

The BPO industry is regarded as a priority by the Philippines Development Plan as essential to the country’s ten high priority development areas. To further entice investors, existing government programs include incentives such as tax holidays, tax exemptions, and simplified export and import procedures.

What makes the Philippines a better BPO market compared to other nations?

What makes the Philippines a better BPO market compared to other nations? Cheap labor – the Philippines has a low standard of living and the wages for unskilled labor are very low compared to many other countries.

Why is BPO popular in the Philippines?

Filipinos have top notch communication skills and are skilled on a myriad of industries. We provide high-quality services such as voice, non-voice, and back office to a great number of verticals, encouraging more businesses to explore outsourcing opportunities in the country.

How does outsourcing affect the Philippine economy?

The Business Process Outsourcing (BPO) industry is one of the Philippine economy’s two primary ‘legs’, contributing $26 billion to the Philippine economy in 2019. BPO employs 1.3 million people in over 1000 firms.

Why is BPO the fastest growing industry in the Philippines?

Why the Philippines is a business outsourcing giant?

Outsourcing Opportunities Foreign investors see the Philippines as an attractive offshore outsourcing destination primarily due to low labor costs, low cost of living and a talent pool of young, educated, customer-oriented and English-speaking workers. Outsourcing in the Philippines presents a lot of opportunities.

Why Philippines has a lot of BPO companies?

BPO in the Philippines is becoming a key developing industry, primarily due to the relatively low cost of living, and a workforce which composed mainly of young and educated Filipinos with good spoken English language skills.

Why Philippines is the best for outsourcing?

Companies across the globe and across industries cite cost savings as the main factor that makes the Philippines an ideal outsourcing destination. In addition to its competitive labor cost, the country’s office rental rate is less expensive than anywhere else in the Asia-Pacific region.

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