The sector has been growing steadily and now accounts for an estimated 9% of the Philippines Gross Domestic Product (GDP) and similarly startling statistics can be seen in countries like India which are also known for outsourcing. This contribution is largely due to a majority of the country’s well-educated population, favorable economic environment, and advantageous geographical position.

The BPO sector has been a major source of employment for Filipinos, providing more than 1.3 million jobs in 2019. This number is expected to grow even further in the coming years as the sector continues to expand. With the sector’s growth comes greater opportunities for workers and better salaries. In addition, it boosts other areas of the economy, including the hospitality, real estate, and retail industries.


The Philippine government has taken steps to promote the growth of the BPO industry, including offering tax breaks and other incentives. The government has also worked to improve the country’s infrastructure and create a more business-friendly environment. These efforts have successfully attracted companies from abroad to invest in the country’s BPO sector.

BPOs offer a wide range of services, including customer service, technical support, data entry, and more. Many of these services are provided to companies outside of the Philippines, which helps to create jobs and increase foreign exchange earnings. Additionally, the sector provides a great opportunity for Filipino workers to gain valuable skills and experience that can be used in other areas of the economy.


What is Business Process Outsourcing?


Business process outsourcing (BPO) is the process of contracting out specific, non-core tasks and functions to organizations other than one’s own. BPO is a cost-effective way to improve efficiency while allowing businesses to focus on their core competencies. BPO can be used to manage various critical business processes, including customer service, accounting, and finance.

The primary benefit of BPO is that it frees up valuable resources for more strategic activities. Companies can focus on their core strengths and gain a competitive advantage by outsourcing specific tasks. BPO also enables businesses to access a larger pool of specialized talent and expertise, removing the need to invest in the training and development of in-house employees.

Business process outsourcing is a low-cost way to streamline operations and increase efficiency. Companies can focus on their core competencies and gain a competitive advantage by outsourcing non-core tasks. Companies should choose a BPO provider with the expertise, experience, and security measures required to protect sensitive data.

The Philippines’ Economic Contribution from Business Process Outsourcing


The BPO industry in the Philippines is a major job creator, directly employing over 1.3 million people. In addition, the industry is estimated to indirectly employ 3-4 million people and is expected to add 500,000 more jobs within the next two years.


The industry has also aided the Philippines in becoming a major outsourced services hub. The country is now the world’s third-largest provider of IT and business services and the Asia-Pacific region’s largest. This has assisted in attracting large multinational corporations to establish operations in the Philippines.

The expansion of the BPO industry has contributed to the country’s position as a major player in the global knowledge-based economy. It has enabled the country to become a hub of expertise in a variety of industries, including finance, information technology, and healthcare.


Reasons Why the Philippines is a Popular Location for Business Process Outsourcing


• Highly Skilled Labor Force: The majority of the Philippines’ labor force has a strong command of English and a solid understanding of business processes and technologies. This makes it ideal for businesses across the globe to outsource their processes to the country.


• Cost Savings: Business Process Outsourcing (BPO) in the Philippines is significantly cheaper than in other parts of the world. Companies can save up to 40-50% in labor costs by outsourcing processes to the Philippines.


• Government Incentives: The Philippine government offers tax incentives and other assistance to companies that outsource their processes to the country. This helps businesses further reduce costs and take advantage of the country’s business-friendly environment.


• Low Attrition Rate: The Philippines has one of the lowest attrition rates for BPOs, ensuring companies can easily maintain a stable workforce for their processes.


• Developed Telecommunications Infrastructure: The Philippines has an extensive telecommunication infrastructure, which makes it easy for companies to communicate with their offshore staff.


• Business-Friendly Environment: The Philippines has a business-friendly environment, making it easy for companies to set up and manage their offshore operations. The country has a strong legal and regulatory framework that helps protect the interests of businesses.


• Strategic Location: The Philippines is strategically located in the Asia Pacific region, making it an ideal location for companies looking to outsource their processes. The country’s close proximity to other countries in the region makes it an ideal destination for businesses looking to expand their operations.


BruntWork’s top choice

Because of its strong economic growth, strategic location, and attractive labor pool, the Philippines is an appealing destination for BruntWork, an outsourcing company that cares both for its clients and its Filipino staff. In the coming years, the Philippines is well-positioned to remain a popular business outsourcing location. The country’s economic and political stability, as well as its growing pool of skilled and educated labor, are expected to keep foreign businesses interested.