After a recent slowdown, the global market for outsourcing is rapidly rising again. In particular, Business Process Outsourcing (BPO) is seeing renewed growth as an increased number of developed countries become attractive offshore landscapes.
Making up 15 percent of the global market share, information technology outsourcing to the Philippines is leading the country to an economic boom. As global brands invest more heavily in offshore ICT outsourcing, there are many reasons they should look to the Philippines as their communications and data transmission facilitator.
The Philippines is ranked as the seventh most attractive country in the world for global offshore outsourcing, and here’s why:
1. A strong ICT infrastructure
Since 2006, the Philippines has embarked on a major ICT infrastructure overhaul, positioning the country to play an even larger role in the global digital revolution.
The Information and Communications Technology Office (ICTO) is engaged in numerous projects with a view to making the Philippines more connected, competitive, innovative and resilient, with a top class ICT framework in place.
2. Government investment
A country’s success in the global ICT industry requires cooperation on a governmental level. The injection of government funds into the ICT framework of the Philippines has laid strong foundations for further economic growth across all sectors.
By recognizing the key role ICT plays in such growth, the Department of Science and Technology, under advisement from bodies such as the National Academy of Science and Technology, has helped the Philippine ICT industry take gargantuan strides in the recent years.
3. Growth of IT-BPO in the Philippines
Growth in the ICT industry in the Philippines has remained consistent since the 1990’s and the current upward trend is set to continue. In particular, information technology-business process outsourcing (IT-BPO) is now one of the country’s fastest growing sectors.
Beginning two decades ago with a single Accenture contact center, now most of the global giants, including IBM, Shell and JPMorgan Chase Bank, have Philippine BPO offices. They have seen revenue generated in the hundreds of millions of US dollars.
4. The power of the people
In recent decades, the Philippines has made remarkable advancements in the education of its citizens, producing a high volume of skilled and educated young people.
With the pervasiveness of digital technologies and a high uptake among its population, the Philippines has access to millions of tech-savvy workers. And with English being the second official language of the country, this makes the Philippines an obvious choice for international brands looking for a workforce.
5. Financial attractiveness
As the outsourcing of ICT gains momentum, global brands increasingly seek countries like the Philippines for its relatively low cost of living.
In order to compete internationally, the Philippines also maintains a continuous supply of specifically designed BPO office spaces. This has allowed commercial real estate prices to remain relatively cheap for international businesses. And with the country offering the third-largest employee pool for ICT services worldwide, there will be no problem finding staff for these purpose-built BPO spaces.
6. Location
In the heart of Asia, the Philippines has always been an important geographic location as a strategic trading and distribution point for the rest of the region. The country is a major international hub for commercial airlines with a solid transportation network throughout the archipelago state. The Philippines offers investors a key global location for the outsourcing of business operations.
7. Privacy ensured
With data transmission being a necessity of outsourcing operations, how sensitive information is handled is of vital importance. When offshore outsourcing, companies must rely on the destination country to ensure the safety and security of all data, especially that of a confidential nature. The Philippines’ Data Privacy Act of 2012 brings the country in line with international standards for contemporary, 21st-century data privacy management.
In short, the Philippines has a robust ICT infrastructure, with continued implementation of government initiatives to reinforce it, and access to a young skilled workforce. This, in turn, leads to a malleable IT-BPO industry which can adapt to the shifting demands of modern businesses.
With the ICT industry in the country expected to grow by 10.6 percent annually by 2020, the Philippines is blazing a trail towards becoming the top ICT outsourcing location in the world.