The global Business Process Outsourcing (BPO) sector has empowered the operations, scalability, and digital transformation of businesses from various verticals for almost three decades. With the latest innovation, international rivalry, and new technologies, the industry is showing a strong growth trajectory in the next ten years.
The global BPO market is expected to grow to US$513 billion by 2030. According to Straits Research, the industry will grow by 8.5% CAGR over the next decade due to a greater focus on core capabilities across various end-use verticals and minimal non-core operational costs. With an expected value of US$178 billion, North America will continue to dominate the market. Asia Pacific (APAC) is expected to remain the fastest-growing market by 2030, valued at US$148 billion.
With the growing demand for high-quality outsourcing services, including outsourcing services in the Philippines, several global enterprises and industries are now riding the BPO wave. Here are some interesting updates about the global BPO sector’s influence on the economy.
Microsoft Follows Zoom and Salesforce, Enters Contact Center Industry
With the release of the Microsoft Digital Contact Center Platform, Microsoft became one of the well-known software companies like Zoom and Salesforce to enter the contact center industry. Consequently, the company also launched new services combining voice, video, and chat from its existing products, such as Dynamics 365, Teams, Power Platform, Azure, and Nuance. According to Microsoft Business Applications Corporate VP Charles Lamanna, the “integrations and interoperability and being open” is key to succeeding in the contact center market.
More Cybersecurity and Insurance Companies Start Outsourcing
Cybersecurity firm Cynet released the results of its latest survey showing that 9 out of 10 small security teams have become dependent in their security mitigation efforts on a Managed Detection and Response (MDR) service to increase protection against cyberattacks. According to Eyal Gruner, the Cynet CEO Eyal Gruner, most Chief Information Officers (CISOs) with small security teams have faced challenges in maintaining reliable security solutions to protect their companies as the digital age has introduced increasingly sophisticated cyber threats, hence turning to outsourcing cybersecurity specialists. Today, at least 58% of CISOs felt that their attack risk was higher than enterprises. In another study conducted by NortherTrust, it was revealed that 60% of investment managers also outsource data management, back office, and trade processing to boost cost-efficiency and focus more on value-added areas of their business.
The Philippine BPO Industry is Further on the Rise
With its highly skilled and experienced talent pool, the Philippines is known as a super region for global businesses looking to hire resources for almost any role. Hence, outsourcing companies in the Philippines are considered some of the most preferred outsourcing providers in the world.
Here are updates specific to the Philippine BPO industry and how it is affecting the growth of local businesses and industries.
Philippine Real Estate continues to be driven by the Business Process Outsourcing (BPO) industry
Despite several drawbacks brought by the COVID-19 pandemic, the Business Process Outsourcing (BPO) industry has maintained its position as one of the main drivers of the Philippine’s real estate sectors. The Filinvest REITs (FILRT) has revealed that BPOs currently occupy 240,998 square meters (sq.m.) of over 300,000 sq.m. gross leasable area (GLA) or 91% of their portfolio, making it one of the largest when it comes to the occupation of leasable areas. Moreover, FILRT President and CEO Maricel Brion-Lirio also revealed they are aggressively expanding their footprint in anticipation of the continued demand for sustainable office spaces in provincial areas. On the other hand, the FIRLT’s parent company Filinvest Land, Inc. (FLI), also has three office buildings in Cebu at various stages of development. With feasible economic strategies in place, it managed to get 73% of the top global BPO locators in the country.
Property developer SM Prime Holdings is also planning to expand its business through the ambitious extension of plans to SM City Cebu’s property to include two BPO towers, a new parking area, and a provincial branch of the Manila-based National University (NU). Targeted to begin construction in August 2022, the towers will be used as workplaces for the city’s flourishing BPO industry. The renowned company also announced that more BPO buildings will be constructed before the end of 2023.
More Outsourcing Jobs Now Available in Philippine Provinces
To help job seekers adjust to the changing economic situation, more than 1,000 employment opportunities will be opened in the upcoming Sandugo Job Fair 2022 in Tagbilaran, Bohol.
According to Bohol Employment and Placement Office (BEPO) chief Vilma Young,] that outsourcing giant Concentrix was able to commit to opening 850 jobs for job seekers in the province. This is the first in-person job fair in the province since the COVID-19 pandemic started and will be the first step to re-opening the economy.
Confirming the rise in the demand for BPO jobs in provinces is the IT Business Process Association of the Philippines (IBPAP) which recorded 29% of the total 1.44 million BPO employees in the Philippines are coming from the provincial areas. This has been the result of flexible work arrangements which is seen to stay in global employment trends.
In its latest report, IBPAP also revealed that outsourcing agencies are increasingly investing in provinces — particularly in Bacolod, Cebu, Clark, Davao, and Iloilo — and further drive efficiency strategies, digital transformation, and honing of skills set.
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