The Rise of the Philippines as a Global BPO Powerhouse
From a single contract with Accenture to a thriving BPO industry. Tracing the milestones that shaped the country’s thriving outsourcing industry.
The Philippines has become a global powerhouse in the Business Process Outsourcing (BPO) industry, offering a skilled workforce, competitive cost structures, and a supportive government framework. But how did this thriving industry evolve in this country? Let’s take a look at the milestones that have shaped the Philippines’ BPO landscape.
1992: The Birth of Contact Centers
Frank Holtz founded Accenture Global Center, introducing the first contact center in Mandaluyong City. This marked the inception of the BPO sector in the Philippines.
1995: The Special Economic Zone Act
The Philippine Congress passed the Special Economic Zone Act, providing a boost to the BPO industry by offering incentives to foreign investors.
1997: Sykes Joins the Scene
Sykes, an international BPO company, established its presence in the Philippines, focusing on inbound call center support. This signaled the entrance of prominent global players in the country.
1999: The Emergence of eTelecare
Jim Franke and Derek Holley founded eTelecare, expanding the range of BPO services available in the Philippines.
2000: BPO’s Impact on the Economy
By 2000, the BPO industry had a significant influence on the country’s GDP, accounting for 0.075%.
2001: A Turning Point
A key turning point for the Philippines’ BPO industry occurred during President Gloria Macapagal Arroyo’s 2001 visit to the United States. Six Memoranda of Understanding (MOUs) were signed, facilitating the establishment and expansion of various BPO companies in the country.
These MOUs, coupled with the government’s support, enabled the rapid growth of the BPO sector, creating thousands of jobs and attracting significant investments. Companies such as Ambergis Solutions, Immequire, and Teletech all played vital roles in the industry’s expansion.
2003: Convergys Corporation Expands
Convergys Corporation opened two more call centers in the Philippines, with President Jack Freker announcing the incorporation of the Philippines in the company’s global expansion and revenue generation plans.
2005: Increasing Global Market Share
The Philippines captured 3% of the global BPO market by 2005, showcasing rapid growth and competitiveness.
2010: Becoming the BPO Capital
In 2010, the Philippines overtook India as the world’s BPO capital, employing 525,000 call center agents and generating $8.9 billion in revenue.
2016: Sustained Growth
The BPO industry’s annual growth rate reached 17% in 2016, continuing its expansion.
2020: Weathering the Pandemic
Despite the challenges of the COVID-19 pandemic, the BPO industry demonstrated resilience, with revenues climbing by 1.4%.
2022: Surpassing Targets
By 2022, the industry employed over 1.4 million people, exceeding its target and solidifying its status as a global BPO leader.
Since the opening of the first contact center in 1992, the Philippines’ BPO industry has experienced tremendous growth. With ongoing government support, a skilled workforce, and a strong global reputation, the country is well-positioned to maintain its status as a global outsourcing leader. As the industry continues to adapt to new technologies and overcome challenges, the Philippines’ BPO success story is far from finished.
