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Is Outsourcing in the Philippines on Its Deathbed?

After more than a decade, business process outsourcing or BPO in the Philippines has undoubtedly made its mark in the country's economy. 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.

After more than a decade, business process outsourcing or BPO in the Philippines has undoubtedly made its mark in the country's economy. 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.

 

Despite its apparent profitability, however, changes in the business landscape prompts one to ask the important question—is the outsourcing industry dead in the Philippines? The answer to this is obviously no, given the number of BPO firms that continue to carry out their operations in the country.

 

Benefits of the BPO Industry

 

The many benefits of business outsourcing Philippines cannot be denied. In the span of time that the BPO industry has been in business, the country has undergone several significant changes. Possibly the most notable of these is the increase in revenue. With investors coming in and putting up offices on Philippine shores, substantial amounts are also coming in. Another important benefit of the BPO industry is the creation of more jobs. This not only partially addressed the constant problem of unemployment, it also brought down the number of Filipino migrant workers to a certain extent. Instead of seeking opportunities abroad, more people found jobs in the country. Last, but definitely not least, the existence of BPO companies in the country created a niche for the Philippines in the global market. As one of the early adapters of the business process outsourcing model, the Philippines is now recognized as one of the top go-to countries when it comes to offshore-business activities.

 

What's next for the BPO industry?

 

These positive effects still hold true even today. But as we said earlier, the business landscape is evolving and change is imminent. So while we have established that business IT outsourcing in the Philippines is not dead, this does not necessarily mean that it would remain this way for very long. Perhaps the better question then is what's the future of BPO in the Philippines?

 

The answer to this question depends on several factors. For starters, it is important for movers in the Philippine BPO industry to realize that the global race is on. Despite the established position the country enjoys in the worldwide rankings, recent changes have led to a drop in the Philippines' position from top 7 to top 9. The decreased ranking only goes to show that other countries are working hard to get a share of the outsourcing pie.   As such, one of the challenges that the Philippines would need to face is that of competition. BPO industries would simply need to step up in the game to be able to compete better and maintain—if not improve its current position.

 

It would also be a good idea to expand on the existing menu of services offered to further attract investors and keep up with competitors. After all, growth is always good and changes can help avoid the trap of mediocrity. Improving on the current industry would likewise leave room for expansion to enable a smooth transition to the next chapter of the business process outsourcing history in the Philippines.

 

Om forfatteren

Bronx Marsh has been a technical support for two years working in various projects. To know more about him, check him out at http://www.extensioncorporation.com/

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