The constantly growing BPO (Business Process Outsourcing) industry in the Republic of the Philippines has turned the Southeast Asian country into a major player in terms of delivering offshore tech or information services. According to reports and analysis that were done by reputable sources, the nation just passed India as the main outsourcing destination in the world.
Those foreign companies that outsource in the Philippines have contributed a lot to the rise of employment, particularly with the large IT services firms like Convergys, Accenture, and IBM (Industrial Business Machines). But this boost in employment rate has its drawbacks, as the local business professionals and the industry has their conflicts with social problems with young employees who are asleep during the day and go to the office at night (aside from their “happy hour” starting at around 6 or 7 in the morning).
The BPO industry is normally linked to the call centers, but there are other things which can be outsourced, such as mortgage processing, accounting, human resources, customer relations, and other IT services. During the year 2010, outsourcing business processes and IT services went up at a rate of 26%, earning an impressive $8.9 billion. Based on data that was collected from the Business Processing Association of the Philippines, the number of entrepreneurs and employees who are hired in BPO-related businesses went up by 24%.
Similar to India, the Republic of the Philippines slowly became a leading outsourcing hub largely due to the people who are fluent in English, and are highly educated. The Filipinos have been under American colonial rule for five decades since the 20th century began.
While the Indians had the edge in terms of being tech savvy, Filipinos were eventually able to catch up and surpass their Asian neighbors in terms of this skill. A lot of firms that outsource in the Philippines have realized the potential of Filipinos to learn new things quickly and deliver stellar work outputs.