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Call Center / BPO industry in Philippines

What is the Call Center / BPO Industry

Business Process Outsourcing is one of the fastest growing industries in the world. In the Philippines, it is an emerging industry.

But what exactly is Business Process Outsourcing, or BPO for short?

According to some definitions, it is all about the contracting of a specific business task to a third-party service provider. The outsourced task is one that a company requires but which is not deemed essential to it carrying on with its business. For example, payroll is one such task that can be outsourced easily. Other examples include customer contract services and human resource activities.

Activities that can be outsourced are seen as a cost-saving measure for the company. Payroll and call center operations are long considered as the main contributors to BPO but lately, the trend in outsourcing has moved a notch higher towards skill quality and competence.

Here, legal services, software development and web designing, animation, medical transcription and shared services are now being outsourced as well. What this means to the Philippines is that this shift will contribute to strengthening the country's position as an emerging global leader in the BPO industry.

While call centers will still form the largest part of the sector, the Philippines has begun leveraging its creative design talent pool, its large pool of lawyers, and its professionals in accounting and finance.

From just about 2,400 people employed in this industry in 2001, it is now estimated that 200,000 people are working in 120 BPO companies in 2006. By 2010, Philippine BPO is forecast to earn US$11 billion and employ 900,000 people. Having overtaken Malaysia as a BPO center, the Philippines is now set to challenge India and China.

The majority of BPO facilities are located in Metro Manila although Baguio, Bacolod, Cagayan de Oro, Cebu, Clark, Dagupan, Davao, Dumaguete, Lipa and Iloilo are now some of the other centers being promoted and developed for offshore operations.

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