In a recent post from Business Mirror, it has been said the Philippines still offers big potential for the BPO industry. In fact, the Bangko Sentral ng Pilipinas said the BPO sector in the country made a total of $13.3 billion in export earnings last year, which was 15 percent higher than in 2012. For this year, the sector is expected to grow by another 15 percent to more than $15.3 billion.
Currently, the country is the leader in the voice sector of the Business Process Outsourcing (BPO) industry, but is a second fiddle to India when it comes to Knowledge Process Outsourcing (KPO).
Darcy Lalonde, chief executive officer of Shore Solutions, pointed out several reasons why the Philippines remains as a dominant player in the BPO business and why it is encouraging for foreign companies to choose the country for outsourcing their functions.
Lalonde first mentioned the highly skilled and hardworking labor force of the Philippines, which in turn warrants better work quality. He attributed this to the high literacy rate in the country, with 92 percent of the population being educated and 400,000 university or college graduates being produced each year. The Philippines also happens to be the third-largest English-speaking country in the world, with many Filipinos having a neutral accent, which is advantageous in voice services. Lalonde also praised the loyalty of Filipinos to their employers, which he sees as a reason why the rate of attrition in the country is low.
Low labor and operating costs as well as cultural compatibility are two other reasons the Philippines remains as an excellent hub for BPO services. As the country has low standard of living, things such as telecommunications, utilities and other provider costs are priced competitively, which means lower expenses for companies. Also, Filipinos have influences of the West and East, making it easier for them to adapt to foreign work processes.
Another good reason Lalonde mentioned is the strong support the Philippine government provides to the BPO industry, which makes business condition better for foreign clients. Given that the BPO sector contributes well to the gross domestic product of the Philippines, the government made sure that fiscal and non-fiscal incentives are provided to BPO players. Foreign companies also get to enjoy lower corporate income tax and duty-free product importation.
Of course, the flourishing economy of the Philippines, which has recently been recognized by foreign credit rating companies, also make for an attractive value proposition for foreign clients who would like to put up their own BPO companies in the country.
With all these excellent benefits, it is not surprising to know that Philippines is indeed a good BPO hub that continues to outperform other offshore outsourcing locations. It still has more to offer, especially now that other major cities and provinces in the country are being developed into ideal BPO locations.