Why The Philippines is a Business Outsourcing Giant - YouTube

Outsourcing in today’s modern world has become  one of the leading changes in the competitive  

business landscape. It has enabled companies  to increase their profit by placing employment  

in more affordable nations. And has led these  firms to focus on what matters more to them.  

These have then given a massive opportunity for  the receiving country, as these conglomerates  

pour out billions upon billions of dollars.  It has pushed an alternative type of industry,  

employing hundreds or even billions of people,  either directly or indirectly through these types  

of schemes. One of the biggest beneficiaries  of this emerging industry, however, is located  

all the way in Southeast Asia. Yes, this is  the Philippines, and it has been one of the  

countries that have profited from the rise of  the world’s business process outsourcing sector.  

Its information technology industry has become  one of the fastest-growing in the country because  

of this rise. It is today, well known that they  provide some of the best software development,  

animation, engineering design, game development,  medical transcription, and most famously known  

as its call center. This industry alone has  employed well over 1.3 million Filipino’s  

and is expected to generate a sum of over $29  billion dollars by the end of 2022. So, why is  

the Philippines such a big outsourcing giant? And  will they continue to capture this large market in  

the future to come? Before we move on don’t forget  to leave us a like and follow for more videos!  

In the year 2010, the country of the Philippines  has been awarded as the BPO capital of the world.  

It has positioned the nation to be one of the  top outsourcing destinations. From the year  

of its inception in 1992 all the way to 2021,  the industry experienced exponential growth.  

What led to this surge in demand for jobs in  the Philippines lies in various aspects. The  

most common factor is because of the  country’s young population. In 2020,  

it is estimated that the median age is only  at 24.1, way below the rest of the world. This  

then gave the young population to learn all of  these technologies early on. English literacy is  

its other characteristic, the Philippines is  the 4th biggest English-speaking population.  

Moreover, it has one of the easiest understood  accents around. And finally, the government’s  

push for a more techy population and the country  has also helped them to take the BPO opportunity.  

Such policies enacted in the past and the  ones in the coming future will be crucial to  

the very health of the IT-BPO sector. The biggest  amongst all these is the contact center, given the  

country’s English-speaking population. Followed  by roles in Software development, Animation,  

and Transcription. In the coming future,  however, these will all change. Low-skilled jobs  

are expected to decline by as much as 29% while  mid-skill and high-level jobs grow by 12% and 19%,  

respectively. This indicates that reskilling and  improvement will be the future’s battlegrounds.  

These have all directly employed 1.3  million Filipino's giving the citizens  

huge employment. But its biggest effect is how it  indirectly contributes to the Philippine economy.  

According to the IBPAP, the entire sector gave way  to 4.08 indirect jobs through various industries!  

They have also contributed to the growing rise  of land value of the Philippines, as the sector  

continues to become a leading force in demand  for office spaces. The challenges, however,  

are also quite threatening. The emergence of the  fourth industrial revolution or more specifically  

the so-called artificial intelligence or AI poses  quite a danger to the country’s biggest industry,  

call center. As this form of digital automation  grows, there will be an inevitable job loss in  

that sector as technology will play the role  of a call agent and even more so that in the  

near future, experts are predicting that this  job will be taken entirely by AI. Furthermore,  

the digital revolution has also brought disruption  from cyber attacks to the country. These  

challenges are in our opinion aren’t something the  country should be afraid of. Rather, it should be  

taken as an opportunity. The growing industry of  AI might mean that the call center is in danger  

but it could also give the country a push to have  better solutions that can’t be replaced by AI.  

It is no doubt that there will be a massive  change in the future’s outsourcing world,  

there will be a variety of job transformations  to come. But the Philippines is in a position  

to ride the transformation because  of its IT-support education system  

and tech-oriented individuals which will  enable them to thrive in the IT-BPO world.