Philippines Outsourcing: The Future And Its Potential Risks

The business process outsourcing (BPO) industry in the Philippines remains bullish this year. In fact, it becomes the key developing industry primarily due to cost of living and workforce which is composed of young with good spoken English language skills.

According to the Department of Trade and Industry (DTI), BPO is defined as the delegation of service-type business processed to a third party service provider. This industry is composed of different sectors such as contact centers, data transcription, software and engineering development, animation and game development, and back office services.

In 2015, the Philippines replaced the giant Mumbai as the 2nd ranking BPO hub in the world and will continue to maintain its high ranking position in the Top 10 World’s Most Preferred Outsourcing Destinations in 2017.

The Future Of PH Outsourcing

Philippines outsourcing industry continues to experience a positive growth rate. Currently employing more than 1 million BPO workers and expected to target a total revenue of $25.5 billion by the end of this year.

However, the government is urged to speed up infrastructure development projects for rapidly expanding the industry.

Meanwhile, the Department of Information and Communications Technology (DICT) launched it Roadmap 2022 last year targeting a revenue of around $40 billion with more than 1.4 million employment opportunities.

Its Potential Risks

Although the industry outlook is overall very positive, there remain future problems, mainly due to possible policy shifts introduced by the Philippines Government.  One major issue is the possibility of proposed changes to the tax holiday benefits that currently are in place, that allow temporary reductions or eliminations of corporate taxes.

Other possible issues and challenges are the possible lack of qualified talents for the industry.

Future Opportunities In BPO

This industry is projected to move with the demand in terms of accommodating new businesses that wish to invest or expand in the Knowledge Process Outsourcing (KPO) sector, which could then cater to a new demand, and cover a wide set of new roles.



Business Process Outsourcing in The Philippines,



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