BPO? It’s More Fun in the Philippines!

The people, the places, the events, and so much more. Yes, they say it’s more fun in the Philippines.

And we have brought this fun into a different scope. We are also more fun in propagating the IT-BPO (Information Technology and Business Process Outsourcing) industry of the country.

The BPO industry of the country has grown in the past decade, and it still continues to grow in the present. Maintaining its momentum and growth in the coming years will surely make the industry a major player in combating poverty in this third-world country.


Yes, I know you were doubtful of the idea of fun and IT-BPO put into one thought. Mixing the vibrant and outgoing personalities of the Filipinos and the very serious world of business is definitely not a status quo in the society. There is quite a distinction between enjoyment and trade.

But hey, why don’t we analyze it. Let’s find out why BPO is more fun in the Philippines.

The remarkable change brought by the Outsourcing Industry to the country won’t be deemed remarkable at all without the certain factors that made the IT-BPO industry flourishing.

We have cited the top ten reasons it’s more fun to engage in the IT-BPO industry here in the Philippines, according to a top research and advisory company, XMG Global. They believe these are the top reasons, and we’re here to examine and arbitrate the following:

1. Philippines has a youthful and brilliant pool of talents. The country possesses a youthful population, with an estimated 60.5 percent of the population belonging to an age group ranging from zero to the early twenties.

The young working adults in their early twenties (20–25 years old) represent the 9 percent, while the teenagers (13–19 years old) represent 16 percent, and ages 0–12 represent the 35.5 percent.

While some Western and Asian countries are already experiencing the median age creep, the Philippines need not worry about it since the country's median age remains at 22.9 percent. The country has a literacy rate of 92.6 percent, projecting an estimated 440,000 graduates (2012-2013), and contains a large pool of young individuals, highly trainable and yet to be tapped. Because of the need for work experience among the young individuals, businesses are expected to experience a high employee retention rate compared to other countries who also offer outsourcing services.

2. Philippines possesses a good quality of Education. The roots of the educational system of the country started way back in 1901, when the Thomasites established their first “normal” university here.

The education system was structured following the Western model, giving it an “edge” from all other educational system in Asia. Since then, the government has been supportive in propagating programs that give quality education to all Filipinos from all sectors of the society.

Recently, the Department of Education (DepEd) has taken an initiative to further develop the education of the youth through the K-12 educational system. This scheme is modeled according to Western educational structures.

3. Philippines has more knowledge and a good grasp of the English accent. Recently, Philippines has been indicated as the number one country with expertise in Business English. This proves that Filipinos are more than capable of handling business transactions with foreign clients and are competitive enough to deal with the global market.

A recent study from the GlobalEnglish Corporation, based in Brisbane, California, illustrated some interesting results with regard to English proficiency scores. It showed that only one country, that is Philippines, scored above a 7.0 BEI (business English index) level, compared to other countries at the top five of the list. Slovenia with 6.19 to Norway with 6.54. A score above 7.0 is illustrated as possessing a high aptitude to take an active role in business discussions and perform complex tasks. This is particularly interesting because the Philippines, a country with a population only one-tenth of India, recently overtook India as a hub for call centers.

4. Philippines provides outsourcing services at a Lower Cost. The country still remains a less-expensive choice compared to other top outsourcing countries like India. According to XMG Global, the average Filipino employee is paid at $10 per day, while an average Indian employee’s average daily rate is 37 percent higher.

The typical operating costs of a BPO company in the Philippines result in an average savings of 15,000 to 22,000 US dollars annually. Another factor that contributes to the low cost of the Philippine IT-BPO industry is the number of legal holidays. Philippines only has 18 holidays per year, compared to India that has 33 legal holidays.

5. Philippines considers Health as Wealth. Although the labor cost in the country is low compared to other countries, the Filipinos give utmost importance to the package benefits offered by the companies. About 41.7 percent of the employees give value to medical privileges. An estimated 70–80 percent of fresh graduates and experienced professionals are willing to work on shifting schedules, yet Filipinos still give significant value to having a balance between work and personal life. About 6.5 percent of experienced professionals would take a new job for them to work in a company that has a less-stressful environment.

6. Filipinos acknowledge the need to be Multilingual to give quality service to the world. An estimate of over 6,000 multilingual speakers in 2011 far exceeds labor market projections. It’s still a fact that the country experiences scarcity in attaining multilingual talents to supply the BPO industry’s demands, but the government has raised efforts in answering the need.

A tie-up with the Board of Investment and IBM has been made to implement programs in developing and enhancing the capabilities of the Filipino professionals in being fluent with foreign languages, besides English. This effort will play a major role in generating the targeted revenue of $25 billion by year 2016. Also, it is noted that 70% of the multilingual talents have acquired their skills without even setting foot in the country the language originates.

7. Filipinos have a Social Mind Trend to be in a BPO Company as a Hip Employment. Because BPO companies are known to give competitive compensations and good benefits to their employees, many fresh graduates and experienced professionals prefer to work for a BPO company. About 12.4% of Business graduates prefer to work for BPO companies, compared to 6.7% of Technical skilled graduates. Moreover, about 23.6% of Technical fresh graduates and experienced professionals stated their preference to work for High Tech (IT/Telecom) Companies in 2011. Today, about 41.6% of experienced professionals prefer to work for this industry, and the trend is growing.

8. BPO ensures GDP growth, an advantage for the Philippine economy. The Outsourcing Industry is currently the largest in the private sector, providing 610,000 direct jobs for Filipinos in 2011 alone. It has helped build the nation by providing jobs, promoting investments, and contributing revenue to the country.

9. Philippines is the best location to outsource. The country houses 248 economic zones, all established by the Philippine Economic Zone Authority. These zones are ideal venues for business investments and locations of business operations. The locations are strategically situated across the country, chosen for their suitability of location, availability of transportation, and cost-effectiveness of labor. The government has adapted to the changing needs of the economic zones with the development of infrastructures like airports and other transportation links.

10. Being close to nature – a 7,000-island paradise. The Philippines is a vacation destination all year round. Companies can station their business pretty much anywhere in the country, and could have access to world-class tourist destinations. Both owners and employees can have the best of two worlds: working environment and leisure.

There are still more reasons investors should stay and prosper here in the Philippines. We just gave you our top grounds for investors to stay, and we’re still discovering more.

With the friendly and hospitable aura of the Filipino people, the efforts and support of the government and other non-government organizations for the Outsourcing Industry, and the tropical season it has all year round, there seems to be no more valid excuse not to stay here.

So, where else? It’s definitely more fun in the Philippines!

About the Author

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Publish on 07/11/2012

Miche is a self-employed blogger and copywriter from the Philippines who loves writing and is always happy to share her passion for blogging.

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