The information technology (IT) and business process outsourcing (BPO) industries have been an economic boon for developing countries such as India, Malaysia, and the Philippines.
With customers from the US, Europe, Australia, and New Zealand, the Philippines enjoys a large portion of the global outsourcing pie, which is estimated to reach $250 billion by 2022.
In this post, we’ll be taking a closer look at how the BPO industry has contributed to improving the lives of the average Filipino worker and its far-reaching effects on the nation’s economy.
1. Better Infrastructure
As IT-related activities progressed, the country’s infrastructure also underwent massive improvements.
There’s an increased availability of world-class telecommunications services, along with the installment of fiber optic cable networks to support the continuously growing business demands.
This improvement on the country’s technological infrastructure has been beneficial for the Filipino people, allowing for wider internet coverage and faster internet speeds at reduced costs.
2. Higher Salary Rates
In general, workers that are employed in the BPO sector enjoy higher salaries on average when compared to other fields.
Since the cost of living in the country is relatively low, this has allowed BPO industry workers to provide their families with a higher level of comfort and financial security.
On top of improving financial conditions, better salaries have also opened up the doors for many Filipino workers to go into entrepreneurship.
This has encouraged much of the population to become small business owners, both in the digital and physical world.
And, as we all know, small businesses and enterprises are the backbone of a country’s economy.
3. Government-Sponsored Training Courses
The Philippine government is fully aware of how the BPO industry plays a significant role in driving economic growth.
For this reason, several government-sponsored programs were created with the goal of meeting workforce demand, which includes courses that refine both English writing and speaking.
When coupled with the country’s high literacy rate, this proficiency in the English language has been a major game-changer for the Filipino people.
It has fostered better relationships with foreign businesses, as well as pave the way for many Filipinos to work abroad and in more developed economies in the US and in Europe.
4. Broader Cultural Influence
The Philippines is among the few Asian countries that derive influences from both the Western and South-East Asian world.
Because some of the country’s most prominent customers come from the west, the Filipino people have also undergone a cultural change that gradually resembles that of other countries.
While it doesn’t appear to be a large economic factor, it has helped to make foreign investors more comfortable with their enterprise plans in the country, thus helping the overall economy.
Business Process Outsourcing is the Future of the Philippine Economy
Over the years, the Philippines has gradually risen to the top of the list when it comes to business process outsourcing services, and it’s a win-win scenario for both the outsourcing customers and the Filipino people.
It’s hard to predict where the industry is headed, especially because technological innovations are advancing at a rapid rate.
As long as nationwide changes are applied to meet the demands of the BPO industry, then we can expect the Philippines to continue reaping the benefits to the economy.