Business Process Outsourcing – BPO – is becoming a major economic sector in the Philippines as cheap labor and widespread good English-speaking allow it to compete against India. Here are 3 videos that present the details of how BPO boosts the Philippines foreign revenues, changes workers lives and helps reshape the country.
BPO: a major sector in the Philippines
In the last 10 years, Business Process Outsourcing became a major source of foreign exchange in the Philippines, with more than 15 billion USD in revenues, and creating about 1 million jobs, thanks to a cheap workforce that can speak English well. BPO has developed so well that it has become a driver for the entire economy and business in the Philippines.
The Philippines is still a developing country with major problems of infrastructure, legal restrictions for foreign business, corruption, heavy traffic jam, but the current positive reforms bring it to a good place for the future, as highlighted in this CNBC video.
How Business Process Outsourcing works in the Philippines
The quality of the English spoken by Filipino employees is a precious asset to compete against India, together with its cheap labor. Working at night shifts, they can provide service for the American industries of logistics, accounting, paralegal, telemarketing and medical insurance, without American customers even noticing it.
These characteristics have seduced major American corporations to relocate from India, but they also provide a lot of jobs for the Philippines. And with a starting 400 USD monthly salary, these jobs are attractive to the Filipinos who can then afford a higher standard of living, as explained in this CNN video.
Advantages of the Philippines against India for BPO
Many call centers are transferring to the Philippines from India, which was the traditional leading country in the BPO industry. This move highlights the advantages that the Philippines possess over India for BPO: Filipinos have a more neutral English accent which is easier to understand on the phone and a proportionally more qualified workforce.