Outsourcing in the Philippines has been considered the highest quality option by the US and European markets. Compared to India, the Philippines is relatively new and a scaled down version of the enormity of India’s outsourcing industry. Even with these facts, the Philippine outsourcing industry has been steadily thriving through the years and has been attributed as one of the main movers of the growing Philippine economy. The industry alone has employed at least 1.4 million Filipino professionals in various locations all over the country. The BPO industry is estimated to be worth US$40-55 billion by 2020.
The boom and success of the outsourcing industry in the Philippines can be attributed to a lot of factors but mainly, it has to do with the Filipino culture itself, our affinity, fascination and fondness to the Western culture that made Filipinos easily adaptable. For 300 years, the Philippines was a Spanish colony. We were also subjugated by the British, the Dutch and the United States of America. It is also said that the Philippines will always be remembered as the only colony of USA’s imperialist past.
The Philippine education system is also a huge and strong mover for the outsourcing industry to thrive continually and steadily over the years. There are approximately 1900+ Higher Education Institutions or HEIs all over the Philippines which offers degrees or courses that can easily channel graduates to consider working in the BPO industry. According to the Commission on Higher Education (CHED), 718,880 students graduated in the academic year 2018-19, before the pandemic happened. With these numbers and with the advent of the new normal, Filipino professionals and new graduates opted to seek employment in the BPO industry. Stringent license exams are also given yearly to make sure that the quality of the graduates are maintained and upheld. The government has also implemented accreditation and has given special citations to educational institutions that passed these examinations.
To further bolster and encourage local and foreign investors to set up shop, the Philippine government passed legislation to ease up the process of establishing BPOs. It also offered tax breaks and exemptions, set up special economic zones exclusively for BPOs and tweaked its existing laws to strengthen and to protect employees from abuse and unfair labor practices.
Payroll also plays a huge role on why fresh graduates and professionals flock to work in the BPO industry. Salaries are considerably higher; benefits are much better and the perks offered by BPO companies with the help of their affiliates and business partners are just too good to pass out.