By: Joem Hughes
The Republic of the Philippines has emerged as an important supplier of labor to the global offshore outsourcing market at the beginning of the new century. This South East Asian country has experienced a Business Process Outsourcing or BPO boom thanks to the demand for offshore call centers, web developers, search engine optimizers, online marketers, programmers, animators and graphic artists.
The country was able to collect more than $2 billion from offshore service generating revenues, placing it third behind India and China a year ago. If you consider that the outsourcing industry in Manila employed just two an a half thousand people and the industry had revenues of merely $24 million at the beginning of the decade, the current figure is a very significant increase. Predictions indicate that this growth will be sustained in the following years.
Over 200,000 Filipino workers were involved in various BPO companies in the last year. Various experts have predicted that Business Process Outsourcing in the Philippines will earn about $11 billion and employ more than 900,000 people in the next decade. Good BPO companies similar to AOV Outsourcing service will continue to flourish and more Filipinos will strive to join the outsourcing industry in the next following years.
There are plenty of reasons why the Philippines has emerged as a top Business Process Outsourcing location in the Asia Pacific region. Low cost or wages is one of the main reasons for this phenomenon. For instance, the Philippines has the second-lowest hourly wage for offshoring professionals. Compare that to the wages in Malaysia which are around twice that of the Philippines. A company that wants to hire an online marketer or web designer from a Filipino Business Process Outsourcing company like AOV Philippines outsourcing can save a lot of money. The Philippines also has a larger pool of workers suitable for multinational companies than most Asian countries making it ideal for outsourcing.
The figures clearly show that the Philippines will continue to become a major force in the Asian Business Process Outsourcing industry. The offshoring industry will continue to become a dominant part of the Philippine economy since many young Filipinos aspire to become involved in the different lucrative areas of Business Process Outsourcing. The government of the Philippines has also recognized the trend is making economic and legal reforms that would allow the industry to flourish. Filipino economists understand that the outsourcing industry can improve the standard of living of the citizens.