Persistent Progress and Promising Prospects: The Business Process Outsourcing Industry in the Philippines
A lucrative and robust industry, the IT-BPO industry in the Philippines is continuously growing faster, making the country the world’s BPO capital.
The Philippines is a premier destination for the business process outsourcing industry because of its excellent talent pool. The skills of the workforce is the industry’s biggest pride. In fact, companies from the US have a preference for Filipinos because of their effective language skills and patient work ethic. Aside from that, the industry also boasts of cost competitiveness, impressive infrastructure, lower labor cost, government support and amazing records of continuous growth.
The BPO industry’s revenues increased by 19 percent last year, from $15.5 billion to $18.4 billion. This makes the industry a big driver of the Philippine GDP, representing 6 percent of the Philippine economy. Moreover, the BPO industry is the largest employer in the private sector, as BPO jobs rose to 1.03 million in 2014, from 900,000 in the year prior. Out of 1.03 million, 630,000 are under the contact centre sector.
For the year 2015, the industry’s revenue is expected to rise to $21.3 billion, and $25 billion by 2016. The industry is also forecasted to grow by 15-18 percent annually. Based on World Bank estimates, there are also projections that the industry can generate up to $55 billion by the year 2020, further increasing its contribution to the GDP. Furthermore, the industry is foreseen to increase its workforce to 1.2 million this year, while in the next two years, its revenue may soon overtake income remittances from overseas Filipino workers (OFWs)
The industry has many sectors within it, but the contact centre sector is perhaps the most notable as it remains to be the biggest revenue contributor. The growth of the rest of sectors continue to rise as well, with the healthcare information management sector being the fastest growing sector in 2014. Other sectors include back office services, data transcription, animation, software development, engineering development and game development.
Like any other industry, the BPO industry also faces challenges. Some factors seen to potentially hamper the industry’s growth are international competition, rising costs and staff shortage. However, the biggest challenge for the industry is to ensure the competency of its talents. In order to sustain its talent pool, BPO companies provide extensive training to its candidates. Moreover, the IT and Business Process Association of the Philippines (IBPAP) is also looking to initiate the Service Management Program (SMP), a course designed to equip students with the competencies and skills needed to become part of the BPO industry.
The following companies are the top 36 BPO companies as of 2014:
1. Accenture Inc. (P28.104 billion in revenues);
2. Convergys Philippines Services Corp. (P17.281 billion);
3. JPMorgan Chase Bank N.A-Philippine Global Service Center (P10.805 billion);
4. 24/7 Customer Philippines Inc. (P7.711 billion);
5. Telephilippines Inc. (P7.241 billion);
6. TeleTech Offshore Investments B.V. (P6.978 billion);
7. Sutherland Global Services Philippines Inc. (P6.805 billion);
8. Stream International Global Services Philippines Inc. (P6.738 billion);
9. Sitel Philippines Corp. (P6.364 billion);
10. Deutsche Knowledge Services Pte. Ltd. (P5.754 billion);
11. Sykes Asia Inc. (P5.617 billion);
12. IBM Daksh Business Process Services Philippines Inc. (P5.516 billion);
13. Aegis PeopleSupport Inc. (P5.445 billion);
14. TeleTech Customer Care Management Philippines Inc. (P5.402 billion);
15. IBM Business Services Inc. (P5.211 billion);
16. Telus International Philippines Inc. (P4.962 billion);
17. Shell Shared Services (Asia) B.V. (P4.821 billion);
18. HSBC Electronic Data Processing (Philippines) Inc. (P4.700 billion);
19. ePLDT Inc. (P4.147 billion);
20. SPi CRM Inc. (P3.501 billion);
21. ACS of the Philippines Inc. (P3.492 billion);
22. VXI Global Holdings B.V. (P3.266 billion);
23. Emerson Electric (Asia) Ltd. (P3.230 billion);
24. StarTek International Ltd. (P3.094 billion);
25. IBM Solutions Delivery Inc. (P3.019 billion);
26. Sykes Marketing Services Inc. (P2.760 billion);
27. SPi Technologies Inc. (P2.626 billion);
28. Genpact Services LLC (P2.552 billion);
29. Macquarie Offshore Services Pty. Ltd. (P2.522 billion);
30. Thomson Reuters Corp. Pte. Ltd. (P2.265 billion);
31. AIG Shared Services Corp. Philippines (P2.357 billion);
32. Hinduja Global Solutions Ltd. (P2.194 billion);
33. Lexmark Research and Development Corp. (P1.956 billion);
34. ANZ Global Services and Operations (Manila) Inc. (P1.869 billion);
35. Maersk Global Service Centers (Philippines) Ltd. (P1.859 billion); and
36. Manulife Data Services Inc. (P1.745 billion).
Countries: Philippines and South East Asia
Topics: Getting Started, Market Research, Product Development, and Sales & Marketing