The Philippines BPO service industry has been successful due to the human resources that are literate, have good communication skills, youthful and proficient in English.
The BPO service sector has contributed to 6% of the GDP in 2015 and is expected to rise to 9% by 2016. The IT and BPO Association of the Philippines (IBPAP) predicted revenue to double from $9 billion in 2010 to $25 billion in 2016. That accounts for 10% of the global market share. The revenue generated by BPOs could reach $50 billion by 2021.
The country’s higher education produces 500,000 English speaking graduates every year providing a constant supply of workforce to BPOs. The IBPAP created Service Management Program (SMP) to give youngsters necessary skills to join BPOs.
MNCs are interested in setting up shared services offices in the Philippines.
Although India is on top of the overall BPO rankings, Philippines is closing on the leaders at an extremely fast rate. Many places in the Philippines are able to offer office spaces at low rents. This is crucial for the price sensitive industry. Two legal acts have reinforced the Philippines reputation as a reliable and secure offshoring destination.
Integration in ASEAN boosts the Philippines IT-BPO sector.
There are no signs that indicate BPO is going to disappear in the near future.