India may have had a decade’s head start in the business process outsourcing (BPO) industry, but this definitely did not stop the Philippines from stepping up to the challenge. Back office operations began in India as early as the 1980s with a number of European airlines using Delhi as a base. In the years that followed, more countries and companies established offices in India. This expanded the BPO industry in the country even more. By the time the rest of the world caught up with the BPO business model, India had already established itself as one of the foremost outsourcing destinations in the world.
Despite the decade-long advantage, the Philippines has managed to get its fair share of the global outsourcing pie. Since the first BPO firm officially established its office in the country, many others have followed suit. To date, more than a thousand companies currently have offshore operations in the Philippines. This only shows the extent of the success that the BPO industry enjoys in the country.
The Philippines as a competent industry player
Business process outsourcing in the Philippines initially began with the presence of a US-owned firm that primarily employs IT professionals. The initiative has since grown exponentially, but what has really helped the country make its global mark is the emergence of call centers. Many of the major players in the call center industry in the Philippines first established offices in the late 90s to early 2000s. Not only have these businesses expanded their operations, many other companies set up office in the country, further cementing the existence of BPO in the Philippines.
What makes the country particularly competitive is the high number of English-proficient workers. This is primarily the result of the country’s high literacy rate, with most schools using English as the main language of instruction. In addition to a good grasp of the English language, Filipinos are also valued for their ability to adapt the US accent and for their understanding of the American culture. For these reasons, the Philippines has been recognized in March this year as the world leader in BPO, beating India in the total number of workers employed according to two different studies.
Indeed, call centers have given BPO in the Philippines a competitive advantage over India. In fact, even some Indian BPO companies are taking their business to Philippine shores according to reports. This shift is just one of the solid proofs of how the call center industry in India has fallen in the last three years.
The next step for the Philippine BPO industry
Despite the obvious edge that call center companies have given the country, business process outsourcing in the Philippines is not just about contact centers. As mentioned earlier, one of the foremost offshore companies that was established in the country catered to IT services. In recent years, there has likewise been an increase in the number of companies focusing on more higher-end outsourcing services like SEO and SEM management, Web design and development, game development, Flash design and animation, and many others. By offering these services, the Philippines not only increases its marketability. It also prepares the country for the next phase of its BPO history.
