21st September 2018
In today’s global economy, outsourcing as a concept has become one of the main drivers for economic growth, especially in developing countries. The growth of outsourcing has had a significant economic impact in a country like the Philippines. It is believed that the first outsourcing contracts were carried out in India in the 1990s, and ever since, the Philippines has become a global hub for SMEs and MNCs looking for scalable solutions to manpower.
For instance, both the ITO (Information Technology Outsourcing) and BPO (Business Process Outsourcing) in the Philippines today contribute to around 2.4% of the country’s GDP the domestic economy grew by 5.4%. In his seminal work The Wealth of Nations (1776), Adam Smith described the theory of competitive advantage, which laid out the idea that companies could reduce costs by utilising labour in less developed countries.
In 2010, the country was named the BPO capital of the world-beating other countries such as India, one of the leading names in the industry. This can be attributed to the notion that Filipino BPO employees are good communicators and can easily capture the interest of customers from all over the globe. From medical transcription down to selling all other services, Filipino workers rake monumental figures. There is nothing that a Filipino BPO worker won’t do to help his company prosper. Being value and purpose-driven are the vital elements that make the Philippine BPO industry a boom.
The success story of the Philippines in attracting foreign investments and improving economic development, clearly indicating that outsourcing can be regarded as one of the main drivers for economic growth.
The outsourcing sector can be a huge economic driver, especially when it comes to employing the young people who are the highest number of unemployed people in the region.
A recent report by Grant Thornton shows that 40% of business executives are planning to outsource their business processes where the economics of scale, meaning outsourcing, have a greater impact. With the advancement in technology, outsourcing has become an attractive and a strategic business option, especially in ICT, cloud-based technologies, accounting, and financial service offerings.
There is a bright outlook for investors as they continue to build confidence in the Filipino workforce. It is always a win-win situation if the workers fuelling the business core are Filipinos. The blood of a hardworking BPO employee transcends in the multitude of every company’s desirable outcomes.