Business Process Outsourcing (BPO) Philippines

The Philippine business processing sector is growing at such a fast rate that last year the industry grew by 137 per cent or 2.5 billion dollars in revenues. During the same year, the industry saw a 53 per cent increase in the BPO workforce or 81, 000 new jobs generated.

If the figures were to speak for themselves, there is no doubt that in the global market for offshore work, the Philippines is king.

The Business Processing Association of the Philippines (BPAP), the Board of Investments (BOI), and the Commission on Information and Communications Technology (CICT) project that the business processing industry in the Philippines will grow further to 12.4 billion dollars by 2010, creating 303, 000 new jobs and with the total BPO workforce reaching 1.1 million.

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The Philippines is eyeing a wider niche in the business process outsourcing (BPO) market in the United States as it participates in the biggest outsourcing fair in New York to further attract foreign investors.

According to Center for International Trade Expositions and Missions (CITEM), the country’s participation in OutsourceWorld New York, slated from October 18 to 19, is one way of the nation’s campaign to promote the Filipino capability on BPO.

Analysts said the United States accounts for 60 percent of the spending in the world?s BPO market, largely driven by the prosperity to outsource, cut costs and focus on core competencies. The said demand for BPO services will likely continue until 2006.

Trade Secretary Peter Favila noted that worldwide BPO demand is mainly driven by the desire of foreign companies to focus on their core competencies, improve service levels and reduce internal costs.

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Welcome to Business Process Outsourcing (BPO) Philippines!

This site is dedicated to promoting the Philippines as the primary destination for all Business Process Outsourcing (BPO) requirements.

Business process outsourcing or BPO is an emerging industry in the Philippines. This industry was regarded as one of the fastest growing industries in the world. The BPO boom is led by demand for offshore call centers. It is estimated that 112,000 people were working in call centers in the Philippines in 2005, bringing in revenues of US$1.12 billion for the year. This is a sharp increase from 2000 when call centers employed 2400 people and earned US$24 million. Overall, Philippine BPO is forecasted to earn US$13 billion for the year 2010.

This emerging industry in the Philippines is fueled mostly by customer care, medical transcription, software development, animation, and shared services. Though customer care call centers form the largest part of the BPO boom locally, the Philippines’ language proficient information technology, human resource, and finance/accounting professionals are a significant contributing factors as well. The proficiency of many Filipinos in English and Spanish were major factors in the growth of BPO in the Philippines.

The Philippines has the largest number of accredited accountants in Asia, with the number growing yearly. Filipino accountants are also renowned for their flexibility in working with multiple accounting standards.

The Philippines’ Center for International Trade Expositions and Missions (CITEM) report for 2004 cited the Philippines as among the top 10 choices for offshore operations. Major companies that already operate in the Philippines include AIG, AOL, Barnes & Noble, Chevron, Citigroup, Dell, HP, IBM, Intel, JPMorgan Chase, Motorola, Procter & Gamble, and Trend Micro. Notable BPO vendors include Accenture, Convergys, and Unisys.

A survey by Kelly Services, Inc. based in Michigan, showed that India is no longer the first choice of U.S. companies looking to setup their offshore backroom operations. The study cited companies eyeing the Philippines as the better site due to quality. Filipinos enjoy a comparative advantage over American workers for two reasons. First, labor costs in the Philippines are a fraction of those in the United States. Second, most BPO workers in the Philippines are college graduates. Many overseas labor sourcers also prefer Filipinos over Indians when it comes to customer support and customer interaction due to Filipinos’ relative ease and familiarity with American culture and U.S. slang.