The Philippines: A Leading Outsourcing Destination | Outsource Calculator

The Philippines: A Leading Outsourcing Destination

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THE PHILIPPINES: A LEADING OUTSOURCING DESTINATION

Outsourcing has revolutionized the global business landscape, and the Philippines has emerged as one of the top destinations for outsourcing services. In this article, we will explore the history of outsourcing in the Philippines, the factors that have contributed to its success, and why it continues to be a preferred outsourcing hub.

The Evolution of Outsourcing in the Philippines

The roots of Business Process Outsourcing (BPO) in the Philippines can be traced back to 1992 when Accenture established its Global Center in the country. With 50,000 employees solely in the Philippines, Accenture laid the foundation for outsourcing operations by offering management consulting and professional services worldwide. This single contract marked the beginning of a thriving BPO industry in the Philippines.

Over the years, several significant events shaped the growth of BPO in the country:

The Special Economic Zone Act (1995): The Philippine Congress passed this act, providing tax incentives to foreign investors, making the Philippines an attractive destination for outsourcing services.
The Rise of Multinational BPO Companies: In 1997, Sykes became the first multinational BPO company to support inbound calls in the Philippines, paving the way for more global players to establish their presence.
Expansion and Growth: Throughout the early 2000s, the BPO industry in the Philippines experienced exponential growth, contributing significantly to the country’s GDP.
Global Leadership (2010): With 525,000 call center agents and an estimated $8.9 billion in revenue, the Philippines became the world’s largest BPO provider in 2010.
Continued Growth (2016): The BPO industry in the Philippines continued to expand at an annual growth rate of 17 percent in 2016.

Why Outsource to the Philippines?

The Philippines offers several compelling reasons why companies choose it as their outsourcing destination:

Cost Efficiency: Outsourcing to the Philippines allows companies to reduce labor costs and overhead expenses significantly. With outsourcing firms handling workspace, utilities, and equipment, businesses can focus on core operations, enhancing overall efficiency.
Skilled Workforce: The country boasts a talented and professional workforce, making it an ideal destination for outsourcing various business functions.
English Proficiency: The Philippines ranks high in the English Proficiency Index, making it an attractive choice for English-language services.
Government Support: The Philippine government actively supports outsourcing activities, creating a conducive environment for BPO companies to thrive.
Infrastructure Development: The continuous development of infrastructure supporting outsourcing is crucial for maintaining the country’s position as a top outsourcing destination.
Innovation and Adaptability: The Philippines has proven its readiness for innovation, continuously evolving to meet the ever-changing demands of the outsourcing industry.

The Future of Outsourcing in the Philippines

As the world increasingly relies on outsourcing, the Philippines is well-positioned to maintain its leadership in the global BPO market. To ensure continued success, the country must prioritize English language proficiency, infrastructure development, and government support for outsourcing activities. Moreover, embracing innovation and adapting to new trends will be key to sustaining its competitive advantage.

The Philippines’ journey as a top outsourcing destination is a testament to its skilled workforce, cost-efficient solutions, and commitment to excellence. With a rich history and a promising future, the Philippines continues to transform businesses and lives through the power of outsourcing. As companies worldwide seek to build remote teams, the Philippines stands ready to provide unmatched outsourcing services and maintain its position as a leading player in the global BPO industry.

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