06 Mar The "Sunshine" Industry – Philippines
What is Business Process Outsourcing (BPO)? BPO is defined by the Department of Trade and Industry as the “delegation of service-type business process to a third-party service provider”. In the Philippines, the Industry has become a driving force to the country’s economic development. In 2011, the Industry garnered almost $9, 000,000,000 in export revenues that contributed to an approximate 4.8 percent share in the country’s gross domestic product (GDP), as reported by the Business Process Association in the Philippines (BPAP). DTI secretary G. L. Domingo says that the target for this year 2012 is $11billion, contributing 5% of the country’s GDP. The Philippine BPO Industry is divided into sectors namely the: contact centers, back office support, transcription, animation, information technology, engineering, digital content/gamer development.
The Contact center or Call center sector headed the industry’s growth and placed the country in the map as the no. 1 destination for contact center and call center outsourcing according to BPAP president and chief executive Benedict Hernandez. These companies offer voice and non-voice services. Voice services include technical support services, customer services and telemarketing services. Non-voice services include chat customer support, email response, email marketing and many other related services; generally inbound and outbound call handling services.
Furthermore the Business Process Outsourcing Association in the Philippines (BPAP) broadly classified offshore, onshore, near shore, and outsourced services into three categories. This is the ITO services, BPO services, and ESO services. However, Business Process Outsourcing (BPO) services have the biggest cut in the pie. Related services in this category also emerged and gradually making an impact on the BPO industry’s growth in the country. International research firm Ovum said that the Philippines is one of the rising Knowledge Process Outsourcing (KPO) destination in the world like Sri Lanka and China, while India sits on the front leading as the number one. Legal Process Outsourcing (LPO) services have created a bit of a buzz lately in the country. As more law firms learn to have a bird’s eye view over the growing market for LPO services. Philippines is not short of talent, English speaking and intelligent lawyers in the country will become a promising workforce in LPO clientele.
The Philippine Government continues to recognize the importance of the BPO industry in the country’s economic development. DTI Secretary G. L. Domingo pointed out lately that the Department of Education (DepED) and the Commission on Higher Education (CHED) is collaborating to revise the country’s education curriculum, and including the Technological Skill and Development Authority (TESDA) efforts in providing training to support the BPO Industry given its increasing demand for local talents and skills in the near future. Also, the Legislative body has shown its support to the BPO industry by ratifying new laws such as the Republic Act 10151 and the Data Protection and Privacy bill to protect preserve the rights of the owners and employees as well.
The so called “sunshine” industry in the Philippines’ potential growth in the coming years will give light to one of the country’s recurring problem of unemployment. More Filipinos seek to improve their economic stature with everybody’s help there’s nothing that cannot be achieved.
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