How the Philippines is Driving Global Business Growth Through Outsourcing

Modern outsourcing, or BPO as we know it today, has been the industry standard for many international, top-performing companies in the world for a while now. Ever since the boom of this innovative business practice in the ‘90s, the Philippines has been one of the key players that contributed to the success of many businesses that subscribed to the then-novel approach.

Nowadays, the Philippines is not limited to providing specialized services performed by local workers. Because the country has met all the necessary standards to be a top-performing outsourcing hub while continuously producing skilled workers, the country has long been considered an indispensable powerhouse that can influence the overall direction of the business world.

Why Is The Philippines Considered To Be The Globe’s Best Outsourcing Hub?

The practice of outsourcing workers was prompted by the increased need of growing companies to cut down on labor costs while still maintaining the production and provision of quality products and services. One of the main goals of the business practice is to disperse repetitious but specialized tasks to proficient workers for a much lower cost.

Companies from the U.S., Europe, Japan, and other countries with flourishing business industries are always on the lookout for workers who can perform specialized tasks and the abundant number of skilled Filipino workers fit the bill.

Apart from conversational English, impeccable grammar skills, and the lower cost of living, the Philippine government saw the potential of outsourcing as a high-generative income business and adjusted local policies to make the practice as available to foreign companies as possible. This made the country attractive to many international, top-performing companies, resulting in foreign investors coming in and supporting the growth of the outsourcing industry in the country.

The Role Of Outsourcing In The Philippines’ Economy

The BPO industry resulted in remarkable profits not only for the businesses that utilized the process of outsourcing but also for the country’s GDP. In fact, in 2019, the BPO industry contributed $26 billion dollars to the country’s GDP. This highlights the industry’s astonishing speed of growth, ranking as the Philippines’ second biggest source of income, just behind the revenue generated by the remittances sent by overseas Filipino workers.

With competitive labor costs and continuous support from the government, the BPO industry is not expected to slow down anytime soon. For the year 2023, the IT and Business Process Association of the Philippines expects the country’s entire outsourcing industry to generate $35.9 billion dollars and provide jobs to more than $1.7 million full-time Filipino workers.

The Future Of Outsourcing In The Philippines

The Philippines has long proven its status as the best location for companies who are looking to extend and outsource their operations. With skilled workers and lower costs, the country continues to foster one of the most competitive outsourcing industries in the world, not to mention the advancements done by the local government to support the continuously growing outsourcing sector.

From call centers to IT services, the Philippines’ outsourcing industry is still looking to expand and the global business world is always paying attention. More Fortune 500 companies are looking to outsource their operations and small and medium-sized companies are following suit.

As the world continues to evolve, so is the country’s outsourcing sector. Readily available resources paired with the flexible working culture of Filipinos are not only seen as profitable but considered the preferred standard of service when it comes to outsourced operations. With this in mind, the Philippines’ outsourcing industry is not only well-established in the business world, but it serves as a flourishing canopy that will not be going anywhere anytime soon.