The Philippine IT-BPM Industry in Numbers
According to the IT and Business Process Association of the Philippines (IBPAP), the Philippines commands an 18% global market share in customer experience, standing tall 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).
The increasing preference for the countryside in the Philippine IT-BPM industry, underscored by its growth, highlights an expanding potential that global businesses can tap into without dealing with the challenges now marring the capital. To further develop and promote the alternative cities as dynamic alternative investment destinations, industry leaders are working with the government to strengthen the talent pool and IT-BPM capabilities of Frontier Cities. By 2028, these cities will have joined Manila in contributing to industry aims of adding 1.1 million new jobs, reaching 2.5 million FTEs, and achieving $59 billion in annual revenue.
The Five Key Philippine Advantages
1. Outstanding English Proficiency
Rooted in the American influence on its education system, Filipinos are renowned for their exceptional command of the English language, ensuring effective communication and collaboration with clients from English-speaking regions.
2. Educational Excellence
The country’s educational curriculum places a strong emphasis on communication and soft skills among students. Additionally, institutions have developed training programs and courses tailored to the needs of companies like those in the IT-BPM industry.
3. Affordable Workforce
The average annual salary in the Philippines is much lower than in Western countries, making it a cost-efficient outsourcing destination.
4. Government Support
The country provides a favorable business environment with supportive policies, regulations, and incentives for IT-BPM companies. This support enables easier adoption of outsourcing models and promotes a business-friendly ecosystem.
5. Cultural Synergy
Endowed with strong cultural ties to the West, particularly the United States, Filipino talents can seamlessly integrate into global teams, leading to enhanced collaboration and client interactions.
Outsourcing Beyond Manila
Metro Manila, the Philippines' cultural, educational, and political hub, has attracted economic aspirations as an industrial center and global gateway. However, its rapid expansion has brought significant challenges.
The influx of job seekers has strained resources, driving up living costs and intensifying demand for essentials like food, water, and housing. Traffic congestion, inadequate housing, and environmental concerns tarnish its reputation as a top outsourcing destination. Over 500 informal settlements and safety issues underscore the need for strategic planning to maintain its business appeal.
Frontier Cities and Next Wave Cities in the Philippines offer promising alternatives with sustainable growth, improved infrastructure, and better quality of life for workers. Diversifying outsourcing locations to include these areas can not only lower costs, tap into new talent pools, and promote balanced regional development but also provide a less saturated market, reducing competition for talent and resources. This condition can lead to easier recruitment and access to top-quality professionals.
Unlock the Philippine Advantage: A Guide to Outsourcing in the Philippines
In our latest OP360 free guide, The Philippine Advantage: A Guide to Outsourcing in the Philippines, we delve deeper into the advantages of outsourcing to the Philippines, offering insights into the frontier cities that help shape the country’s reputation as an outsourcing powerhouse.
Whether you are a seasoned outsourcing veteran or exploring opportunities for the first time, this is your chance to discover how the Philippines and its frontier cities can propel your business forward.
Learn more about OP360 and how we harness these frontier cities to deliver a better way to outsource.
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