The Philippines commands an 18% global market share in customer experience, excelling in IT & digital services, healthcare services, and employee satisfaction among Global In-House Centers (GICs). The Philippine business process outsourcing (BPO) industry anticipates a 7% revenue surge, projected to reach $37.87 billion in 2024, as reported by the Information Technology-Business Process Management Association of the Philippines (IBPAP).
IBPAP President Jack Madrid emphasized the sector’s significant role in job creation, noting that employment had soared to 1.7 million in 2023, with an additional 1.1 million jobs slated for creation by 2028.
Key Advantages of Outsourcing to the Philippines
- Exceptional English Proficiency: Filipinos’ strong command of English facilitates effective communication with English-speaking clients
- Educational Excellence: Emphasis on communication and soft skills in the educational curriculum enhances workforce readiness.
- Cost-Efficient Workforce: Lower average annual salaries compared to Western countries make the Philippines a cost-effective outsourcing destination.
- Government Support: Favorable business environment and incentives promote a business-friendly ecosystem.
- Cultural Synergy: Cultural ties to the West enable seamless integration into global teams, enhancing collaboration.
Expanding Opportunities Beyond Manila
Metro Manila, renowned as the hotspot of culture, education, and politics in the Philippines, is an industrial center. However, its rapid expansion has posed significant challenges, including strained resources, escalating living costs, and amplified demand for essentials like food, water, and housing. Traffic congestion, inadequate housing, and environmental issues also challenge its standing as a premier outsourcing destination.
On the other hand, Frontier Cities and Next Wave Cities like Davao, Cebu and Cagayan de Oro present promising alternatives, boasting sustainable growth, enhanced infrastructure, and improved quality of life for workers. Expanding outsourcing to these areas reduces costs, taps into fresh talent pools, and fosters balanced regional development by alleviating competition for resources.
Dive Deeper to Discover the Philippine Advantage
Learn more about OP360 and how we harness these frontier cities to deliver a better way to outsource.
