The year 2014 will come to an end in a few weeks and we can’t help but look back at how the Philippine business process outsourcing industry has fared throughout the year. Let’s take the time to review its biggest successes in 2014.
1. Ideal Investment Destination
A Singaporean government agency called the International Enterprise Singapore (IES) revealed that the Philippines is an ideal investment hub for businesses because of the country’s strong economic growth potential. The BPO industry in the Philippines is one of the top growing segments in the country, which attributed to the increase in the demand for office and commercial infrastructure. The IES also stated that the country’s talented workforce is also another big contributing factor.
2. Increase of Call Center Business
A statement released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) stated that India is losing 70% of its call center outsourcing business services to the Philippines and Eastern Europe. This could lead them to lose up to $30 billion in foreign exchange revenue if the trend continues. The Philippines’ quality manpower, lower operating costs, and high-quality services are the top three reasons seen to have contributed to this.
3. Cost-Effective Hub
Cushman & Wakefield published a research paper entitled “Should MNCs Stop Paying Rent Overseas?” It forecasted that the Philippines may soon join China and India in the ranks of viable hosts for MNCs overseas operations. Presently, China and India remain at the top for overseas operations. However, there is expected to be a shift towards other markets because of the increase in rental rates in these countries’ central business districts.
4. Improved Rankings
Despite a controversial video released by BPO company, Aegis Malaysia, promoting Malaysia as a better outsourcing destination that the Philippines, a survey conducted by A.T. Kearney revealed that the latter has actually improved its ranking against 50 other countries. The 2014 A.T. Kearney Global Services Location Index stated that the Philippines ranked seventh among 51 countries, which is two spots above its 2011 ranking, where it ranked 9th out of 50. It further indicated that despite falling in the financial attractiveness factor, the country improved significantly in people’s skills and availability.
5. Improved Global Competitiveness
The Global Competitiveness Report by the World Economic Forum (WEF) ranks the economies of 144 countries. It stated that the Philippines’ Global Competitive Index jumped 33 places this year and is now in 52nd place. The country’s ranking has had a steady upward climb since 2010 but this year’s improvement is the highest in the region since that year.
6. Significant Increase in Employment
The BPO Philippines industry has helped provide better-paying jobs since it started in the early 1990s and it looks like it will continue to do so in the coming years. It has been credited for providing jobs to one million Filipinos is targeting to provide jobs to 1.3 Million Filipinos by 2016.
7. Expected Increase in Revenues
During the International IT-BPM Summit held in Manila, Vikrant Khanna of Tholons stated that the country’s information technology-business process management industry will soon become the Philippines’ biggest earner. Its revenues are projected to hit $48 Billion by 2020, which will account for 19% of the $250-Billion global outsourcing industry.
All these achievements by the Philippine BPO industry this year goes to show that the country is indeed growing by leaps and bounds and that it is truly a prime location for outsourcing. It is exciting to see how much of the industry predictions will be realized in the coming years.