The emergence of BPO industry in the Philippines

Outsourcing services became an important sector in the world today. It has offered numerous solutions especially to big corporations who can not simply maintain in-house manpower. It enables the company to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to amortize, and may become outdated or turn out to be a poor match for the company over time. Most importantly, outsourcing helps reduce your company’s expenses. Outsourcing companies operate at a very low cost especially offshore companies.

Considering the progress of BPO Companies, venturing into this type of industry would be a wise decision. These companies have risen so fast and have opened avenues for all. Delivering high quality of service is their topmost priority to maintain good relationship with their clients.

It has been predicted by the international investment consultancy firm, McKinsey & Co., that the demand for outsourcing services will hit $180 billion by 2010, wherein customer contact services, finance and accounting, and human resource sub-sectors being the bulk of that.

The business process outsourcing or BPO industry continues to develop in the Philippines. As a matter of fact, with many companies committing to expand faster than expected, the growth of BPO sector is believed to be irrepressible as it is assumed to accelerate this year. In 2006, the Philippines raked in offshore services and generated revenues by as much as $2.1 billion. There was a large increase from the beginning of this decade when this industry outsourced in Manila and it has employed 2,400 people and generated revenues of merely $24 million.

It was estimated in 2006 that there were about 200,000 people in the Philippines who were employed in 120 BPO companies, and most of these are call center companies that comprises 80% of the BPO industry. In general, outsourcing in the Philippines, or the BPO services are projected to earn by as much as US $11 billion and employing 1 million people this year.