Outsourcing has been in the Philippines for 30 years. Since then it has ballooned into a multi-billion dollar industry that generates important revenue for the Philippine government. With over 700 BPO companies located in the Philippines, it is now one of the largest employers in the country.
From its humble beginnings by offering menial responsibilities and roles such as customer-centric services like telemarketing. Now, non-customer-related services are being offered by BPOs and have transformed into specialized roles in the field of finance, architecture, engineering, and the emerging tech industries.
Its Rise To Prominence
During the 90s’, the Philippine government enacted laws to establish special economic zones to attract foreign investments. Those laws provide protection, tax incentives, and holidays for foreign businesses that are willing to relocate or establish a facility in the country. It should be taken into consideration that the leniency offered by the government towards foreign investors is an attractive aspect of doing business.
Also, the Philippines is blessed with an abundance of tech-savvy and an English-language proficient workforce. Over 95% of its 100 million population is literate and a large proportion have bachelor’s degrees. In addition, a healthy supply of young people entering the workforce puts the Philippines on a competitive edge over the rest of Southeast Asia. With those factors previously mentioned, the amalgamation of the success in the outsourcing industry in the Philippines had cemented its place as one of the top outsourcing countries in the world.
Emerging Outsourcing Trends
New technologies, processes, and increasing demand to outsource will contribute to the growth of the BPO industry.
Recruitment Process Outsourcing (RPO)
The most popular term for outsourcing recruitment is Recruitment Process Outsourcing. To put it simply, RPO is a specific service offered by outsourcing companies. It is a service that offers bespoke solutions or packages for every client’s needs or requests regarding the hiring of potential employees. Instead of having an internal recruitment department within a company. They may hire a BPO company to do the hiring process for them.
Human Resources Information System (HRIS)
It is a software solution that manages employee information, processes, and procedure for recruitment and human resources management. In spite of the fact that this system isn’t necessarily new. BPO companies are starting to create and offer their own HRIS software to businesses. Well-known HRIS systems such as Eddy, Workday, and ADP are quite expensive to purchase. Outsourcing companies are in a good position to develop and offer their HRIS services to companies that are looking for a cost-effective option.
Still one of the most sought-after services because of its rigorous complexity for accuracy and regulatory compliance. Outsourced accounting services had evolved from their roots as a bookkeeping service into multiple service offerings in roles such as licensed tax specialist, financial auditors, and sales and use tax specialist to name a few.
Why It Matters Globally?
While at the forefront of outsourcing, it should be noted that the BPO industry in the Philippines would continue to compete against emerging BPO destinations in the region. Competition for the top spot as the outsourcing capital of the world is heating up and will continue to offer services to countries all over the world. The stability of the Philippines would ensure that the global outsourcing industry maintains an equilibrium of affordable and reliable outsourced services due to its size and influence.
The Bottom Line
Ultimately, the Philippines’ outsourcing industry is still going strong. As the insatiable global demand for outsourcing services continues to increase, the Philippines can maintain its position as an industry leader today and in the future.