Top Outsourcing Companies in the Philippines
Outsourcing companies, also known as Business Process Outsourcing (BPO) companies, in the Philippines began to gain traction in the 1990s as a result of the country’s growing English proficiency, relatively low labor costs, and high-quality workforce. The Philippine government also implemented policies to encourage the growth of the BPO industry, such as tax incentives for companies operating in designated economic zones. Additionally, improvements in technology and internet connectivity made it possible for companies to outsource work to the Philippines more easily. By the early 2000s, top outsourcing companies in the Philippines had become a major player in the global BPO industry, particularly in the areas of customer service and back-office operations.
Table of Contents:
- Revenue of Outsourcing Companies in the Philippines in the 2000s
- Top BPO Companies in the Philippines in the 2000s
- Growth of the BPO industry in the Philippines: 2010-2016
- Growth of BPO Companies in the Philippines: Late 2010s to Early 2020s
- Top BPO Companies in the Philippines from 2010s to 2020s
- How Outsourcing to the Philippines Works
- The Most Outsourced Services to BPO Companies in the Philippines
- What to Know Before You Outsource
- How to Get Started with Outsourcing to a BPO Company in the Philippines
Revenue of Outsourcing Companies in the Philippines in the 2000s
The BPO industry in the Philippines began to gain significant momentum in the early 2000s. Despite the challenges posed by the global economic crisis of 2008, outsourcing companies in the Philippines continued to grow, and became significant contributors to the Philippine economy, creating jobs and driving economic growth.
Top BPO Companies in the Philippines in the 2000s
Some of the companies that have been established in the Philippine BPO industry in the early 2000s include:
1. Sourcefit
2. Convergys
3. Sykes
4. ePerformax
5. SPi Global
6. TeleTech
7. Accenture
8. IBM
9. APAC Customer Services
10. Teletech
Growth of the BPO industry in the Philippines: 2010-2016
The Philippine BPO industry’s revenue in 2010 is estimated to be around $6 billion. “The Philippines has established itself as a premier destination for business process outsourcing (BPO) services, with a highly educated and English-speaking workforce, cost advantages, and government support,” according to the Information Technology and Business Process Association of the Philippines (IBPAP) in the 2010 article “The Philippines: A New Global player in Business Process Outsourcing.”
The following year, the outsourcing industry in the Philippines generated around $8 billion in revenue. By 2012, the industry generated around $11 billion and employed around 600,000 people.
In 2013, outsourcing companies in Philippines employed around 800,000 people and generated around $13 billion in revenue. The following year, the industry crossed the 1 million-mark, employing around 1.2 million Filipinos. The industry’s revenue for the year is estimated to be around $17 billion.
The BPO industry’s estimated revenue grew an additional $5 billion, for a total of $22 billion, in 2015 and employed around 1.3 million people. In 2016, the estimated total revenue grew to an estimated $25 billion, while the employment figure stayed at around 1.3 million people.
Growth of Philippine BPOs: Late 2010s to Early 2020s
The BPO industry in the Philippines continues to evolve, and its yearly revenue is expected to continue to grow. The estimated industry revenue in 2017 is around 25 billion US dollars. In 2018, BPOs in the Philippines generated an estimated total revenue of $38 billion.
According to the IT and Business Process Association of the Philippines (IBPAP), the estimated revenue of the BPO industry in the Philippines in 2019 is around $26.5 billion. The industry employed around 1.3 million people and remained a major contributor to the country’s economy.
The outsourcing industry in the Philippines was heavily impacted by the COVID-19 pandemic in 2020, which led to a slowdown in revenue growth and challenges for the industry. IBPAP said that the estimated revenue of the BPO industry in the Philippines in 2020 is around $26 billion, which is a slight decrease compared to 2019. Despite the challenges caused by the pandemic, the industry continued to be a major contributor to the Philippine economy, and it is expected that the revenue will recover and grow again soon.
Ongoing Shift in Businesses Around the World
An estimate from IBPAP indicated a revenue of $40 billion for 2021. As of 2021, the Philippine BPO industry is considered one of the largest in the world. The industry employs more than 1.3 million workers and continues to grow at a steady rate. With the ongoing shift to remote working and digitalization, many businesses are expected to outsource more of their processes to BPOs. The Philippine government actively promotes and supports the growth of the BPO industry, and it is projected to remain a major contributor to the country’s economy in the coming years.
According to the Department of Trade and Industry (DTI), the Philippines’ BPO industry is expected to continue to grow in the early 2020s, “driven by the increasing demand for outsourcing services, particularly in the areas of digital and IT-enabled services. The country’s well-educated and English-speaking workforce, as well as its favorable business environment, are key factors that make it a preferred destination for outsourcing services.”
Top BPO Companies in the Philippines from 2010s to 2020s
From the 2010s to 2020s, as the BPO industry in the Philippines continued to grow, many companies have established themselves in the industry. Some of the leading BPO companies in the Philippines include:
1. Sourcefit
2. Accenture
3. Convergys
4. IBM
5. Infosys BPO
6. Sykes Enterprises
7. TeleTech
8. Sitel
9. Tata Consultancy Services
10. Tech Mahindra
The Philippines’ outsourcing companies are expected to remain resilient in the early 2020s despite the global economic downturn caused by the COVID-19 pandemic, the DTI said in an article published by the Philippine News Agency. “The country’s well-educated and English-speaking workforce, as well as its favorable business environment, continue to make it a preferred destination for outsourcing services.”
How Outsourcing to the Philippines Works
Outsourcing to the Philippines works in much the same way as it does in other countries. Companies in other countries will typically hire a Philippine-based outsourcing company, which will then handle the recruitment and management of the employees who will be performing the outsourced work. These employees may be based in the Philippines or they may work remotely from other locations. The Philippine-based outsourcing company will typically handle all aspects of the work, including managing the employees, handling customer service and support, and ensuring that the work is completed on time and to the required specifications.
The Most Outsourced Services to BPO Companies in the Philippines
Some of the most outsourced services to offshoring and outsourcing companies in the Philippines include:
1. Customer Service
Many companies outsource their customer service operations to BPO companies in the Philippines, which can provide a wide range of services such as phone support, email support, and social media management.
2. IT Support or Technical Support
The Philippines has a large pool of highly skilled IT professionals, making it a popular destination for outsourcing technical support services such as helpdesk and troubleshooting.
3. Back Office
The country is a common location for companies to outsource back office functions such as data entry, data processing, and accounting.
4. Content Creation
The Philippines is known for its large pool of skilled writers, editors, and graphic designers, making it a popular location for outsourcing content creation services such as writing, editing, and design.
5. Healthcare
The country is also known for its highly skilled healthcare professionals and its well-established healthcare infrastructure, making it a popular location for outsourcing healthcare services such as medical billing and coding, medical transcription, and medical research.
6. Sales and Marketing, Telemarketing
Philippines has a large number of experienced and skilled professionals who are able to perform sales and marketing services such as lead generation, appointment setting, and telemarketing.
As the industry keeps evolving. different companies may grow to have different specialties and focus, so you should research and make sure the provider you are considering has the specific skills and experience you need.
What to Know Before You Outsource
There are a few things you should consider before outsourcing a business function.
First, you should carefully evaluate the cost savings and other benefits of outsourcing, and compare them to the potential risks and drawbacks. Outsourcing can help you save money and access specialized expertise, but it can also lead to issues such as loss of control over the quality of the work and potential legal and regulatory complications.
Second, you should thoroughly research potential outsourcing partners to ensure that they have the skills, experience, and resources to deliver the services you require. This may involve reviewing their past performance, talking to other companies that have used their services, and conducting on-site visits to their facilities.
Third, you should carefully define the scope of the work that will be outsourced, and create a detailed contract that outlines the responsibilities and expectations of both parties. This will help to ensure that the work is completed to your satisfaction and that there are clear guidelines for resolving any disputes that may arise.
Overall, it is important to carefully consider the pros and cons of outsourcing, and to carefully plan and manage the process to ensure that it is successful.
How to Get Started with Outsourcing to a BPO Company in the Philippines
If you are interested in outsourcing to the Philippines, the first step is to identify the business function or functions that you want to outsource. This will help you to determine the type of outsourcing partner you need, and the specific skills and expertise they should have.
Next, you should research potential outsourcing partners in the Philippines. This may involve searching online for companies that offer the services you require, or asking for recommendations from other businesses that have experience with outsourcing to the Philippines. When evaluating potential partners, be sure to consider factors such as their experience, their track record, and the quality of their facilities and employees.
Once you have identified a potential outsourcing partner, the next step is to negotiate and sign a contract that outlines the scope of the work, the responsibilities of each party, and the terms and conditions of the outsourcing arrangement. This contract should be carefully drafted to ensure that it accurately reflects your expectations and protects your interests.
Finally, you should have regular communication with your outsourcing partner, to monitor progress and provide feedback and support as needed.
To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.
About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.
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