What is the Outlook for BPO’s in the Philippines 2021
The Philippines is becoming a preferred outsourcing destination for BPO companies. The country has one of the best English-speaking populations. In addition, the Philippines also boasts of a very high internet penetration rate, with over 70% of its population having access to the Internet. By 2021, there will be an estimated 8.5 million Filipinos working in the outsourcing and BPO industry.
It employs more than 1.2 million Filipinos and accounts for 10 percent of the country’s gross domestic product (GDP). BPO industry revenues are expected to reach $25 billion by 2021, and the industry is projected to grow by as much as $23.5 billion in 2016.
The country has thousands of BPO companies that are providing a wide range of services, including customer care, call centers, and back-office operations. But despite the success, these businesses have been heavily affected by the shift to digital.
1. Size of the BPO industry in the Philippines
The Philippines is one of the largest business process outsourcing (BPO) hubs in Asia and has some of the most highly skilled English-speaking workers in the world.
The BPO industry has started to boom in the Philippines over the past decade as growing dissatisfaction with local companies has prompted companies to outsource development and maintenance files to companies overseas. Despite concerns over the situation, 12% of surveyed Filipino business executives had already outsourced their development and maintenance operations to a company outside of the country.
According to a recent McKinsey & Company study, the Philippines has recently become an attractive location for BPOs. With over one-half of Filipino workers already doing some form of contract work, outsourcing, rather than hiring, has become the draw for businesses.
Despite concerns over the situation, 12% of surveyed Filipino business executives had already outsourced their development and maintenance operations to a company outside of the country.
This strong outsourcing trend has already created an enormous pool of unemployed workers, many of whom have taken up contract work with BPO companies, maintaining critical infrastructure without being employed by the company in the Philippines.
This dynamic combined with the difficulty of hiring locally for high-skilled positions, coupled with limited access to qualified domestic labor and a weak legal framework, has created chaos for businesses.
At the beginning of the pandemic, most businesses were slow to adopt a reliance on remote work.
2. Outlook for BPOs in the Philippines 2021
As of now, the outlook for BPOs in the Philippines is positive. The Philippines is one of the fastest-growing economies in the world – the third fastest in fact – so it’s only going to get better for the country in the next few years. The Philippines has invested a lot in education, and that investment is paying off. The country’s average GDP growth rate for the past five years has consistently been above 10%. BDO lets corporations reduce their overall tax burden in the Philippines. Large corporations, however, are already taxed quite heavily, so this can also create pressure on services and even threaten local businesses. We will continue monitoring the situation and reporting back on our findings.
For now, the best course of action is to put your best foot forward when applying for a BDO position in the Philippines. Start the interview process with at least two Filipino clients before making your final cover letter and resume submission.
People-centric companies do a better job looking after their employees. According to a recent study by Indeed, a candidate’s ability to communicate with others is the most important quality that prospective employees are going to look for when they review an employee’s application.
One of the ways to demonstrate this is to provide clear examples of how you managed your team when things got tense. When things went south at your company, did you, on your own initiative, go to the company resource center and request assistance? Or did you wait until you had it all figured out with your colleagues before contacting anyone?
If a candidate can demonstrate how they handle controversy within their team — whether it is internal or external — it will stand out as more likely to gain their trust and get them hired.
One of the common mistakes remote workers make is not bringing anything with them when they leave their job. They either pack what they need to carry with them (like medications) or leave everything behind (like bags of potting soil).
3. Reasons why Philippine outsourcing is gaining ground
There are several reasons why Philippine outsourcing is gaining ground, not just in the APAC region but around the world. A lot of them have to do with the culture and the mentality of the people there and how well they are suited to the specific roles in the industry.
Because the people in the Philippines are not only nice and friendly but also very open, marketing, and willing to offer something of value to not just users but also business owners. This can be quite attractive if you’re marketing a highly competitive niche in that your target customer list is 95+% of which is NOT US.
They have experience
Being that this is a local economy, it makes it easier for businesses to get quick responses and constructive criticism.
The ease with which transactions can be done
The ease with which marketing can be done and transactions can be done in this country set it apart from the rest of the world.
If you can picture the potential of an industry that you’re trying to enter into, this is exactly it. A great way to ensure you nail that image is to offer lower rates on outsourcing, which will in turn catalyze businesses to seek customers from other countries.
The digital age
Well, after three decades of independence, it’s hardly a surprise that the masses in the Philippines want their mobile phones!
But not all industries are embracing mobile technology. There are several markets that have not yet leaped mobile technology.
So in reality, being able to answer questions about the Philippines, make offers, and get business done in no time is one of the biggest factors: visibility. And visibility is not just a technical aspect. Visibility is about how users can navigate, think about, and ultimately purchase from you.
4. Challenges still faced by Philippine outsourcing
While Philippine outsourcing is well on its way to being a viable career path, there are still challenges that need to be addressed. One of the biggest challenges is that it is still seen as a low-income career option that is low on the value chain. While this is changing quickly, it may take some time for overseas outsourcing to become a viable option for professionals in Central and South America. People in the region are increasingly looking for new ideas and ways of doing things.
This is especially true for corporate relocation, as they are looking to diversify their skill sets and experience. Overseas outsourcing can meet that need in many different ways. How well it will play out depends on several factors, most importantly on the quality of the people on the part of the outsourcers, the geographical reach of the firms, and the business case for the business case.
That being said, for some professions, such as accountancy and legal consulting, outsourcing is already viable and even necessary. While many professionals often think of relocation as a “last resort” option for a career, a career change of this nature should not be ruled out either. At the very least, an inward-looking mindset must be adopted in order to better prepare the mind and move on from such a move.
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Interested in outsourcing some of your work? Contact us today for a free consultation: 844-468-3330 or Info@MySourceSolutions.com