At the beginning of last year, Tholons (2015) published a report looking at the BPO industry as a whole and placed Manila behind Bangalore (India) as the 2nd largest outsourcing destination in the world, and looking at this year’s forecast, Manila might just over take the number one place. Cebu also made it among the list of the top 10 preferred destinations to outsource to. In this week’s post, we share some insights on what’s coming this year, 2016 – a new year with many new exciting plans on the horizon.
Big Players 2016
Roman Romulo shares based on 2012 revenues, the top 15 biggest players in the BPO industry today in the Philippines:
- Accenture Inc. (P28.104 billion in revenues);
- Convergys Philippines Services Corp. (P17.281 billion);
- JPMorgan Chase Bank N.A-Philippine Global Service Center (P10.805 billion);
- 24/7 Customer Philippines Inc. (P7.711 billion);
- Telephilippines Inc. (P7.241 billion);
- TeleTech Offshore Investments B.V. (P6.978 billion);
- Sutherland Global Services Philippines Inc. (P6.805 billion);
- Stream International Global Services Philippines Inc. (P6.738 billion);
- Sitel Philippines Corp. (P6.364 billion);
- Deutsche Knowledge Services Pte. Ltd. (P5.754 billion);
- Sykes Asia Inc. (P5.617 billion);
- IBM Daksh Business Process Services Philippines Inc. (P5.516 billion);
- Aegis PeopleSupport Inc. (P5.445 billion);
- TeleTech Customer Care Management Philippines Inc. (P5.402 billion); and,
- IBM Business Services Inc. (P5.211 billion)
According to Rappler, in 2016 the BPO industry in the Philippines is projected to generate 1.3M new jobs, with 17% annual growth.
Increased Real Estate Value
The growth of Philippine BPO sector remains positive through 2016, playing a big role in maintaining economic stability despite impending leadership change in government, according to leading real estate consultancy and service provider CBRE Philippines.
BPO companies go to the Philippines for the cost and grow quickly because of the people. With BPO interest remaining high, demand for office space is also seen to be on an uptrend.
The highly skilled labour pool also attracts the interest of foreign locators into expanding their operations to the country. According to the 2014 A.T. Kearney Global Services Location Index, the Philippines ranks 7th among 51 countries as prime BPO location. The study also highlighted the country’s labour force as one of the “deepest” or that of large, untapped value and skill. With traditional strengths in call centres, the industry is expanding into higher value-added voice services, as well as into IT and business processes in the medical or health care, legal, financial, insurance, and other specialized fields.
The “Philippine IT-BPO Roadmap 2016: Driving to Global Leadership” report commissioned by IBPAP notes that non-voice services are not yet as visible as the more mature BPO voice sector. At the beginning of 2014, local BPO industry analysts predicted that with favourable economic conditions for investment, we can expect further entry of higher-value KPO services. Our local BPO industry indicated a shift in the kind of outsourced services – from the usual contact centre to more knowledge-intensive services the fields of IT, research, accounting and engineering.
While, the Net Index report published in May 2015 (by Ookla), shows the Philippines has an average download speed of 3.64Mbps (well below the world average of 23.3Mbp) this year the Philippine government will be working on enacting a bill (filed by the senate last year in 2015) that works on improving net infrastructure and requires communication companies to provide faster internet connections. Senate Bill 2238 would impose minimum internet connections of 10Mbps on local telecommunication companies and ISPs operating in the country. The bill is still pending on the committee, but if passed it would be a good step in improving Internet connectivity in the country.