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The Philippines is one of the leading choices for Business Outsource Processing and there are four reasons why many people choose to do so.
- Fluency in the English language -The Philippines is known for Virtual Assistants
with strong English language. Historically the American forces occupied the
Philippines from 1898 to 1946 and the American occupation brought the English
language and the American education system to the Philippines. English is still the
major language used in Universities and Colleges. Filipino call center agents are
preferred globally due to their American English accent, intonation and fluency.
- Filipinos are known for their hospitality and friendliness which make them excel
in Customer Service and Virtual Assistant positions. The Philippine culture fosters
respect and Filipinos have a high regard for their work, and advocates strongly knit
family values and the team spirit
- The Philippines is also the ideal outsourcing hub in Asia due to the availability and
reliability of the telecommunication infrastructure and power supply. Aside from
this, the government is highly supportive of the Business Outsource Processing
industry in the Philippines and gives special incentives to BPO companies.
- With the lower cost of living in the Philippines, talented multi skilled workers can
be employed for less cost than other parts of the world.
Source: http://www.senate.gov.ph/publications/AG%202010-01%20-%20BPO%20Industry.pdf
BPO Statistics
Table 1.BPO employment by sector, 2004-2008
|
2004 |
2005 |
2006 |
2007 |
2008 |
| Contact centers |
64,000 |
112,000 |
160,000 |
198,000 |
227,000 |
| Back office |
15,000 |
22,500 |
36,000 |
40,156 |
68,927 |
| Transcription |
6,300 |
8,950 |
11,675 |
16,409 |
20,224 |
| Animation |
3,000 |
4,500 |
6,500 |
7,000 |
8,000 |
| Information technology |
10,000 |
12,000 |
16,000 |
29,188 |
35,314 |
| Engineering Services |
2,000 |
2,800 |
4,400 |
8,000 |
12,000 |
| Digital content/ Game |
200 |
500 |
1,000 |
200 |
500 |
| Total |
100,500 |
163,250 |
235,575 |
298,953 |
371,965 |
Table 2. BPO Revenues by sector, 2004-2008
|
2004 |
2005 |
2006 |
2007 |
2008 |
| Contact centers |
1,024 |
1792 |
2360 |
3,600 |
4,100 |
| Back Office |
120 |
180 |
288 |
398 |
827 |
| Transcription |
72 |
70 |
109 |
137 |
182 |
| Animation |
52 |
74 |
97 |
105 |
120 |
| Information Technology |
170 |
204 |
272 |
423 |
601 |
| Engineering Services |
34 |
48 |
68 |
152 |
228 |
| Digital content/ Game Development |
3 |
7 |
13 |
1 |
3 |
| TOTAL |
1,475 |
2,420 |
3,257 |
4,875 |
6,061 |
| Growth Rate |
|
64.07% |
34.59% |
49.68% |
24.33% |
Source BPAP
Table 3. A.T Kearney Global Services Location Index (GSLI), 2007
| Rank |
Country |
Financial Attractiveness |
People and Skills availability |
Business Environment |
Total # Score |
| 1 |
India |
3.13 |
2.48 |
1.33 |
6.91 |
| 2 |
China |
2.59 |
2.33 |
1.37 |
6.29 |
| 3 |
Malaysia |
2.76 |
1.24 |
1.97 |
5.98 |
| 4 |
Thailand |
3.05 |
1.30 |
1.41 |
5.77 |
| 5 |
Indonesia |
3.23 |
1.47 |
0.99 |
5.69 |
| 6 |
Egypt |
3.07 |
1.20 |
1.37 |
5.64 |
| 7 |
Philippines |
3.19 |
1.17 |
1.24 |
5.60 |
| 8 |
Chile |
2.41 |
1.20 |
1.89 |
5.50 |
| 9 |
Jordan |
2.99 |
0.91 |
1.59 |
5.49 |
| 10 |
Vietnam |
3.21 |
1.02 |
1.24 |
5.47 |
| 11 |
Mexico |
2.48 |
1.50 |
1.45 |
5.43 |
| 35 |
Singapore |
0.72 |
1.55 |
2.62 |
4.90 |
Note: The weight distribution for the three categories is 40:30:30. Financial attractiveness is rated on a scale of 0 to 4 (with being the highest), and the categories for people and skills availability and business environment are on a scale of 0 to 3 (with 3 being the highest).
Source: A.T. Kearney(2007)
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