PHL still BPO powerhouse
Business Mirror
09 April 2024
THE Philippines remains a powerhouse in the business process outsourcing (BPO), ranking first in labor force among Asia Pacific outsourcing destinations, according to real estate consultancy firm Santos Knight Frank Inc. (SKFI).
Its recent report on the BPO industry shows the Philippines, tying with India for the top spot, emerged as the most well-rounded option across the Asia Pacific, in terms of overall scores in the index.
The report compares four offshoring hubs in Asia Pacific, namely: India, Malaysia, Vietnam and the Philippines. SKFI’s analysis highlights five key drivers of location choice: growth dynamics, skills, labor force, business costs and commercial real estate value.
According to SKFI, among the four major outsourcing destinations in Asia Pacific, the Philippines—which has approximately 78.7 million people in the working population—has the youngest median age of just 25 years. India records a median age of 32.4; Malaysia, 30.8; and, Vietnam, 31.6.
With its well-rounded appeal, SKFI pointed out that the Philippines will be on the radar screen of global players for their specialized outsourcing services such as finance, human resources, legal processes and analytics from the United States, Europe and Australia.
“BPO has taken off over the last 20 years and the Philippines has grown right along with it,” SKFI Senior Director Morgan McGilvray said. “What started as a novel experiment for many firms—the hiring of a few support staff in Manila—has become an integral part of their business operations that they couldn’t live without.”
Holistic Destination
THE Philippine BPO industry grew by double digits in 2021 and 2022, reaching $29.5 billion and $32.5 billion in revenues respectively. A significant part of this growth includes business expansions outside Metro Manila and into other growth centers such as Cebu, Davao, Clark, Iloilo and Bacolod City.
The latest estimates set the Philippine BPO workforce at 1.7 million people, with estimated revenues last year of $35.4 billion, while maintaining a global market share of approximately 10 percent to 15 percent.
Bolstered by Filipino talent, the IT and Business Process Association of the Philippines (IBPAP) is optimistic that the sector will further grow to $59 billion in revenue and a 2.5-million strong workforce by 2028.
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