What Made the Philippines a BPO Capital?

BPO or Business Process Outsourcing, we always heard about the industry from our family, peers, and even in our community. Mostly, we hear this industry as the top destination for young professionals for its silver lining salary rates. But the question is, why do BPO companies set their visions here in the Philippines?

The BPO sector plays an important role in the Philippine economy, especially during the pandemic, and continues its growth today. In every successful venture, there are stories and factors behind it. Here are the factors that led the Philippines to become a BPO Capital of the world.

Favorable Labor Cost

The Philippines has a lower cost of living compared to other developed nations. These can be observed in necessities like food and transportation. With such relatively below on-par to more developed countries, companies take advantage of it. In the business world, what you can control, you must control. Labor is part of the operational expenses. Thus, cutting it down as low as possible will be a lifesaver for the business.

Government Support

Business Process Outsourcing will never be this successful without the full support of the national government. Such support includes regulations and policies, infrastructure, and technology. Here are laws that the national government enacted to strengthen the BPO industry.

  • Republic Act No. 79 (Special Economic Zone Act of 2016)
  • Republic Act No. 10173 (Data Privacy Act of 2012)
  • Republic Act No. 10844 (Department of Information and Communications Technology Act of 2015)
  • Republic Act No. 11165 (Telecommuting Act of 2018)

These efforts by the government towards the industry make the BPO industry and the Filipinos more secure, convenient, and factual.

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Global Competitiveness

The Philippines is no doubt for being one of the top English-proficient countries. According to the 2023 Social Weather Stations survey, which was conducted from March 26 to 29, 2023, it showed that 80% of Filipino adults can understand spoken and written English, 69% of Filipinos can write in English, 55% of Filipinos can speak the English language, and 47% of Filipinos can think in English.

These results are prevalent in the educational system in the country, wherein most of the university instructions, educational modules, and resources are in the English language. English has been integrated into the Philippine education system since the colonization of the Americans in the Philippines. With the favorable results of the survey and the improvement throughout the year, the Philippines is no doubt the best destination for foreign companies and compete in the global industry.

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The Pearl of the Orient Seas, known as the Philippines, has a diverse and rich history. This was the result of the multiple colonizers from different contents. Each of them left a mark that is still prevalent even today, and that is culture. The hospitality and adaptability of Filipinos have been enclosed and anchored to that culture. This cultural trait, especially from the Western countries, allows foreign companies to easily get along with the provider. As a result, the service and hospitality industry in the Philippines has been one of the fastest growing and sustainable industries, including Business Process Outsourcing.

The Philippines continues to reign in the Business Process Outsourcing industry with more than 800+ registered companies, creating more opportunities for Filipinos. The government continuously supports and provides assistance to the industry, not just through legislation but also through different sets of employment activities in every locality. Thus, the business process outsourcing industry is one of the pearls in the Philippines.

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