The Evolution of Philippine BPO Industry

Business Process Outsourcing is undeniably experiencing rapid transformation in the South East Asian Archipelago. Today, it has grown into one of the main industries thanks to the relatively low cost of living and workforce comprising young graduates in the country. The focus on a pool of talent and creative technologies is responsible for this tremendous growth. They are active and enthusiastic to participate in a technological evolution while making a living in tough economic times and high unemployment rates. Most importantly, these workers have a good education and can express themselves proficiently in spoken English. Language skills are a basic and vital requirement in the BPO field.


The government, through the Department of Trade and Industry, defines BPO as a delegation of service-type processes to third-party providers. They are divided into contact centres, data transcription, back-office services, software development, engineering development, animation, and games. The availability of cheap labour especially in Manila and other urban centres have made the country a major point of focus. Many multinationals and international research and data companies have chosen this Pearl of the Pacific as their top outsourcing destination. Mumbai ranks 2nd in the list of best BPO destination and will continue to maintain a high position in the top 10 worldwide outsourcing destinations in the future thanks to the rapid rise experienced already.

The growth of BPO in Manila

The Philippine BPO sector is continuously reliable as the revenue to the government increase consistently. They are expected to reach an all-time high of USD25.5billion. At least 1.4 million people will benefit from employment too. This is a big win both for the citizens and the government alike as the GDP of the nation rises by at least 9%. The introduction of even bigger multinationals such as Amazon recently has increased the chances of improvement and dependability of the Filipinos in BPO. Apart from the growth of the GDP based on foreign companies, the local Philippine Government must continue to provide support and speedy development in the national infrastructure and projects. This is a rapidly expanding industry, which requires the support of crucial national environments such as infrastructure, housing, and other basic needs. Enhancement of the industry will only be sustainable with government participation.


Being the largest online retailer in the world, the decision to bring Amazon to Manila meant a lot to the republic. This meant increased opportunities for the young graduates of the country, better living standards, and overall economic improvement. The launch came at a time when there is tight competition for jobs. The American company promised 300 instant jobs to the locals at first and 1,000 more by the end of the year as it expands to Cebu city later. This site is designed to provide customer support to Amazon users especially in North American and the United Kingdom. The main jobs include customer service associates, team managers, and group managers to boost customer experience and ensure they have access to instant and efficient services.

Future of the BPO industry

The rate of increase in call centres in the Philippines is expected to rise as more multinationals focus on launching their support services in the city of the pearl of the Pacific. There are at least 1 million Filipinos working in the projects to increase employment. This number is expected to rise in the next few years by approximately 20% according to the government reports. Direct employment is most anticipated but the indirect employment is also appreciated. There are many people who stand the chance to make a living and employ others who will also improve their living standards. BPO is, therefore, a priority for the people of the Republic of the Philippines and the Philippines Development Plan. The Philippines Development Plan is committed to entice investors with governmental programs such as tax holidays, exemptions, and simplified import/export procedures and regulations. There are also university courses and affordable training programs in Manila for interested would-be BPO employees. The leading sub-sector is call centres. The industry has overtaken India as the leading call centre country. India has long held on to this reputation until 2015 when the Perl of the Pacific took over as the most reliable and popular place for investors.

Digitisation of the BPO

Digitisation has made working with customer support services extremely exciting. It has attracted many young tech-savvy Filipinos in Manila. The rapid rise in the digital world led by millennial, graduates, affluent, assertive, and tech-savvy generation, in general, has a tremendous in the country, as is the case around the world. Substandard customer services are no longer acceptable if they do not live up to their expectations. The demand for quality services around the world has led to the improvement and constant growth in the digitisation of services for efficiency and best customer experience and satisfaction.

Possible Risks

Even with the rapid growth experienced today, future problems may arise especially due to policy changes. Change in national administration every election year poses major changes, which affect the overall BPO standings. For example, the proposed changes to tax holiday benefits currently in place may temporarily cause some unpleasant adjustments to the industry. Compromising on the income tax reduction from 30 to 15% is also a major policy with huge effects on the industry.

Future Opportunities

Due to the available demand for voice information, the industry will possibly increase locally. More businesses want to invest and expand into the knowledge process outsourcing. This would cater for the increased demand. Improved expertise and experience will reduce fraud, errors, and complaints. Other important sub-sectors are; Market Research, Banking Insurance; Actuarial Engineering Services, Fraud Analytics, Equity Research and Investment, Web Design and Development, Medical Transcript Preparation, Data Integration; Project Management Research and Development, and Legal Processes among others.