2022 was a high-yielding year for the Philippine BPO industry. Despite the pandemic, the industry continued to rise and even took advantage of remote work arrangements to generate more jobs. 

Whether you’re looking to work or invest in this industry, it pays to understand how the Philippine BPO industry has performed in recent years. In this blog post, we gave you a quick overview of the Philippine BPO outsourcing statistics and the industries that continue to take advantage of outsourcing.

A Quick Report on the Latest Outsourcing Statistics in the Philippines

• The country’s BPO sector has employed more than 1.3 million Filipinos since 2019, contributing around $30 billion annually to the economy.
• Since 2004, the country’s global BPO market share has quadrupled, rising from 4% in 2004 to 10-15% in 2021.
• According to the IT and Business Process Association of the Philippines (IBPAP), the industry generated $29.49 billion last year, a 10.6-percent jump from the prior year.
• IBPAP revealed that the industry created 120,000 new jobs during the pandemic resulting in revenue of $29.49 billion last year.
• The Philippines has one of the highest literacy rates (98.18%) in Asia, making it an attractive outsourcing destination for Western countries.
• Statistics show that the Philippines is the 14th-ranked country in the world for English proficiency, with a rate of 92.5 percent. In the EF English Proficiency Index of 24 Asian countries in 2020, it ranked second.
• The global outsourcing statistics showed that the Philippine IT-BPM ranked second in the world as an outsourcing destination and number one for voice-related services.

How many BPO companies are there in the Philippines? 

According to the most recent outsourcing statistics from the Philippine Statistics Authority (PSA), there are 851 registered BPO companies in the Philippines, 788 of which are call centers. Almost 400 (46.2%) of these organizations offer computer or IT-related services. 20% of the companies offer medical transcription service, and 9% are studios that produce cartoons and animated movies.

Why is BPO the fastest growing industry in the Philippines? 

The business process outsourcing (BPO) industry in the Philippines has experienced rapid growth in recent years due to a number of factors. 

One of the main reasons for this growth is the availability of a large, skilled, and English-speaking workforce in the Philippines. The country has a strong tradition of education, and many Filipinos are fluent in English, which is the language of business in many countries around the world. This makes it easier for BPO companies in the Philippines to communicate with clients and customers in other countries. 

Another factor contributing to the growth of the BPO industry in the Philippines is the country's favorable business environment. The government has implemented policies and initiatives to support the growth of the BPO sector, including tax incentives, infrastructure development, and investment in human capital. These efforts have attracted a number of international BPO companies to set up operations in the Philippines.

Finally, the Philippines has a strong culture of customer service, with many Filipinos having a natural tendency to be friendly and helpful. This, combined with the country's low labor costs, has made the Philippines an attractive destination for companies looking to outsource customer service and other business processes.

Which industries outsource the most? 

Ecommerce

A large number of customers switched to online shopping when the pandemic happened. The truth is that in 2020, Ecommerce sales rose by $244.2 billion, or 43%. Online retailers began outsourcing in order to handle the increase in client orders. By outsourcing to a low-cost nation like the Philippines, it enables them to expand their Ecommerce staff while lowering their overhead expenditures.

To optimize client order fulfillment, retail businesses that outsource concentrate on order taking and processing, product catalog management, and technical assistance.

Real Estate

There are numerous commercial operations involved in the real estate sector nowadays. While some functions have poor margins, others produce better ROI. Additionally, administrative duties like compiling property research reports take a lot of time. Real estate companies opt to outsource in order to concentrate on establishing connections with clients.

The most frequently contracted-out real estate services include data administration, billing and collections, and mortgage processing.

Tourism

For the creation of memorable customer experiences, the tourism industry has been reliant on the BPO sector. In recent years, the market for BPO services in the travel and hospitality sectors has expanded dramatically. It had an increase in revenue of 10–12%, growing to a value of 4.5–5.0 billion US dollars.

Contact center services, which prioritize multilingual customer support, airline and hotel bookings and reservations, and travel advice, continue to lead the sector.

Telecom

The quick speed of network and service modifications has led to an increase in the demand for outsourcing among telecom companies. The global telecom outsourcing market is still anticipated to expand at a rate of 4.3% per year through 2023, according to a survey by Market Research Future.

Outsourcing customer and technical assistance allows telecom businesses to cut staff costs and invest more money in product development.

Insurance

The insurance sector experienced notable decreases in profitability between mid-2019 and mid-2020, as is common knowledge. By 2020, the sector's growth had slowed to about 1.2 percent. In order to improve efficiency and internal capabilities and get back on its feet, the sector began to outsource.

Data entry, claim processing, and bookkeeping are some of the services that are most frequently outsourced in this industry.

Which industries are most likely to outsource?

As the global recession threatens the world economy, various industries will certainly opt to outsource some of their non-core functions in the next few years. Here are some of the industries that are most likely outsource during an economic downturn:

Pharmaceutical

Due to the recession, shifting regulatory requirements, and pressure on prices, pharmaceutical businesses are currently dealing with many difficulties. As a result, it is getting harder for them to achieve and maintain profitable growth.

The demand for outsourcing in the pharmaceutical industry will definitely increase in the future. Small and medium pharmaceutical companies can concentrate on their core responsibilities, gain access to specialized knowledge, save money, and reduce attrition rates by outsourcing non-essential operations.

Finance

The conventional method of controlling banking operations at a single location is outdated. Economic downturns have shown that this strategy is not economical for banks. By eliminating routine tasks, speeding up work, reducing operational risks, and combining services, outsourcing can increase a bank's efficiency. Although outsourcing has been around for a while, the financial sector has just just started to take use of its benefits.

Utilities

Utility companies are struggling to stay competitive in a tough market while also dealing with outdated infrastructure. They are facing financial challenges and have a lot of administrative work, including managing billing, invoicing, and customer support. Outsourcing these tasks can help these energy companies streamline their operations and focus on other areas of their business.

Digital Marketing

Professionals in digital marketing are aware of how crucial efficiency is across different businesses. Data entry jobs are frequently outsourced by knowledgeable digital marketers because they recognize the advantages of leaving some chores to the experts. Administrative assistance is constantly required to assist with significant projects because the field of digital marketing is constantly changing.

Hire the Best Customer Care Experts in the Philippines

Are you a retail business owner looking for cost-effective ways to scale up your business? Then outsource to the Philippines to take advantage of our 70% cost reduction on your operating costs. Learn why multinational companies like Google and Microsoft increased their business growth with the help of Filipino professionals. 

ManilaPros, a Philippine-based full-service outsourcing company, offers five-star customer care for retailers. We'll provide you with a team of customer support agents who are vetted and certified for your brand through comprehensive on-brand training and assessments. You will also get a dedicated account manager who will oversee your CS operations.

Contact us today to learn more about our customer care outsourcing services.