The Philippines Being the BPO Capital in The World

The Philippines, being one of the developing nations, is also considered to be a favorite tourist destination in the world. Because of the nation’s idyllic beaches, breathtaking diving spots rich in biodiversity, perfect weather, and warm people, foreigners’ recurring visits continue (until the pandemic arises). It strengthened the tourism industry of the country and gave more business and job opportunities.

In the middle of the ’90s, the Philippines had found another opportunity for economic growth when the BPO (Business Process Outsourcing) started to boom in the country. Many foreign companies were enticed to transfer their business tasks in this archipelagic country. It is the beginning of recognizing the Philippines as one of the outsourcing destinations in the world.

The onset of outsourcing in the Philippines took place when the government discovered that outsourcing online is potentially a source for stable national revenues and employment for the Filipinos. And to show strong support and a way of encouragement to more prospective clients across the globe, the government approved the Special Economic Zone Act in Congress. They also passed the law in lowering the taxes of international clients who outsource their online business operations in the country.

Since the emergence of outsourcing in the Philippines, BPO companies continue to grow as the volume of international clients have started to come for online outsourcing services. And a result, 851 registered companies and 429 call centers were established in the local BPO industry. The outsourcing services include telecommunication, healthcare, banking and finance, legal, and many more. Based on the figures, the Central Bank of the Philippines is expecting a 10% increase in revenue. That’s approximately $24.5 billion! The bulk of the clients who outsource in the Philippines came from the United States, followed by the countries such as Europe, Australia, and New Zealand. Due to the surprising and unexpected events, there’s no doubt why the Philippines was acknowledged as the outsourcing capital in the world in 2010. The country took this position from India, one of its neighboring countries in Asia.

Outsourcing customer support contributes to the largest part of the BPO industry in the Philippines. The number of international companies that hire Filipinos to handle their customer support online is increasing. It is not surprising if foreigners want these people who have the Malay race. The Filipinos’ innate skill for quality service, integral value, respectfulness, and affinity towards a friendly work environment are the reasons for strong marketability of the country in global outsourcing.

There are top 4 factors that draw foreign investors to decide outsourcing in the Philippines:

• High literacy rate — according to a report by the United Nations, among Southeast Asian countries, the Philippines has the highest literacy rate at 97.95%.
• High English proficiency — the Filipinos granted a “high proficiency” rating though the country placed only 27th in the ranking. The score is 562 out of 700 at the results of English tests administered by Education First. But beyond these figures, English is considered the second language of the country. English is the form of communication in different fields.
• Neutral accent — the neutral Filipino accent is one of the factors why outsourcing in the Philippines is flourishing, and the country was dubbed as the world’s call center capital. Many English-speaking Filipinos could imitate the American accent. It is essential to attract US clients and even other countries.
• Close affinity with the US and other western countries — due to the colonization of different countries such as the US, Filipinos are already adaptable to different cultures, manners, and personalities. Because of these reasons, they can handle even the most difficult customers successfully.

  With proper training, willing investors, and government support, the Philippines became the leader of the BPO industry and has already climbed the global ladder. Outsourcing is challenged and proven to be strong when the pandemic brought by coronavirus defeats the whole world.