Will There Be a Boom for The BPO Industry This 2017?
Different outsourcing services providers in the Philippines have come a long way since its beginnings in 1992. The business process outsourcing (BPO) industry is one of the successful and fastest growing sectors in the country today. Will it maintain its success and surpass its growth this year? Here are some of the reasons why the BPO industry will still be in its full blast this 2017.
The Construction of Business Hubs
The rise of the different business hubs were seen in places, such as Manila, Cebu City, and Davao City. Apart from these cities, construction of the different business hubs outside of Metro Manila is ongoing to attract more investors and multinational companies to put up their enterprise within the country. Iloilo City, Baguio City, and Bacolod City are some of the new BPO destinations in the country. These cities are predicted to be the next-wave cities that will accommodate and support the massive growth of the BPO industry.
BPO Revenues Will Overtake OFW Remittances
The BPO industry has more than one million workers and it is continually growing every day. If the growth of the workforce remains, the BPO industry can overtake the income of the OFW’s in 2017.
According to Jose Mari Mercado, president of the Information Technology-Business Process Outsourcing (IT-BPO), the growth of the OFW contribution was seen at 6% every year while the BPO industry is growing by 15% to 18% per year. With this, the BPO sector has a promising growth locally and globally. By the end of 2017, the BPO industry can earn about $18.9 billion.
Lower Labor and Operational Costs
Philippines has low cost of living compared to other Asian countries. With this, many multinational companies, such as in the US chooses Philippines to set up their company in the country to provide millions of jobs to the Filipino. Moreover, the typical wage in the country is about 75% lower than in the US, making both labor and operational expenses of the BPO companies lower than in other countries.
Skilled and Young Workforce
The BPO industry would never be as successful as it is without its one million skilled and talented employees. BPO employees are known for their patience in handling various customers, exceptional work ethic, and excellent English-speaking skills. Many Filipinos have the outstanding capability and talent needed in the BPO industry. Hence, it engages more multinational companies to expand their different services all over the country.
Support from the Philippine Government
Over the years, one of the main reasons behind the massive growth of the BPO industry is the full support of the government to their mission and vision. The Philippine government provides enough support and technological needs and training to make the BPO industry efficient and enormous sector.
Outsourcing definitely revolutionized how different businesses operate today. The BPO industry is considered as the one of the most dynamic in the Philippines, with its more than one million people working for the sector. And with more BPO companies will arrive in the coming years, the country will definitely experience economic growth and success.
About the author:
Jeric is a freelance writer that features food, lifestyle, travel, DIY subjects, and nature. He is an adventurer, taking on the world and everything it has to offer, may it be the good and the bad. He also has a weird love for reggae and sharks. See: Reggae Shark