The Philippine Government’s Support for the BPO Industry

By: Paolo Arguelles

Philippine gov’t helping the BPO industry thrive

There are many reasons why the Philippines received monikers that imply the nation’s strength in the BPO industry. “The BPO Capital of the World,” “Call Center Capital,” and “The Outsourcing Haven” are some of the few nicknames crowned over the strong and consistent performance and delivery of the sector.

The BPO Outsourcing Companies in the Philippines play a significant role in the country’s booming economy, enough to make the national government aware of its potential. BPO revenues continue to increase for the past decade, showing its strength as a profitable sector. The IT-Business Process Association of the Philippines (IBPAP) revealed in its report the growth in numbers:

2020 felt like the year that the generated revenues of the Philippine global outsourcing started to decline. The pandemic forced businesses to pull out their accounts in the Philippines because of financial struggles and safety protocols. The situation led to the deterioration of the revenue projection for the rest of the year.

The BPO Outsourcing Companies in the Philippines proved their resilience with speedy adjustments. The IBPAP also expects the BPO industry to rebound with a far stronger showing in 2021. The revenue growth projection reached up to 15%.

Aware of how critical the BPO industry is to the Philippine economy, the national government continues to enhance the sector.

Outlining the Benefits of Outsourcing to the Philippines

Before diving into the government’s efforts for the BPO industry, you must understand how the sector became the established economic pillar of the country. Globalization paved the way for BPO services worldwide to prosper. Companies in business-oriented countries like the US and the UK seek solutions to reduce costs and maintain a competitive advantage.

The search led to identifying vendors from foreign countries. BPO companies that offer significantly lesser operating costs without sacrificing excellent service and labor became in-demand. However, there are only a few nations that meet those qualifications. One of them is the Philippines, with over 800 BPO companies providing outsourcing and offshoring solutions for growth and success.

However, the pandemic painted an unpleasant picture of employment opportunities. Unemployment rates sky-rocketed to a record 10.2% in 2020 because of COVID-19, an alarming rate for the national government. Over 420,000 Philippine workers lost their jobs, forcing the government to rely on the most dependable sectors to provide employment opportunities.

Employment opportunities became prevalent, with Philippine workers looking to jump at the chance to prove their worth. According to the Contact Center Association of the Philippines, BPO companies will be looking to hire over 100,000 employees in 2021.

The speedy adjustment to work from home arrangements plays a critical role in the recovery. Following social distancing protocols implemented by the government, BPO Outsourcing Companies in the Philippines pulled out employees from on-site duties. Employees retain their jobs while working from home, with a skeletal workforce system enforced only when necessary.

BPO companies stabilized from a disastrous 2020 sooner than expected as businesses that outsource to the Philippines start to recover. However, it remains to be seen if recovery is in the books for 2021. This situation is where the Philippine government’s efforts pan out.

PH Government’s Efforts to Strengthen the BPO Industry

The BPO industry will not be the fastest growing industry in the Philippines without support from the national government. The efforts to make the lives of BPO companies and Philippine workers easier are well-documented. Here are a few implemented laws that significantly enhanced the Philippines’ status as one of the top outsourcing nations:

Offshoring BPO industry

Those three enforced laws provided a path for the BPO industry to flourish in the Philippines. However, the national government remains determined to ensure that Philippine workers will continue to arrive for the outsourcing and offshoring sector.

Republic Act No. 11165, also known as the Telecommuting Act, recognizes digitalization and technological developments as alternatives for employees to carry out their duties in flexible work arrangements. As a result, employers in the BPO sector can offer telecommuting programs under mutually agreed-upon conditions to workers. The terms, however, provide employees with a fair advantage:

PH Government laws that support or strengthen the BPO industry

The added protection provided by the Telecommuting Act, coupled with the work arrangement adjustment of BPO companies, resulted in more Philippine employees looking to seek stability for their careers within the BPO sector. International companies now have more access to more skilled and talented Philippine employees than before.

Leave a Reply