Business process outsourcing (BPO) has been one of the most dynamic industries in the Philippines over the past decade. It is now the country’s largest source of private employment, as well as the second largest source of foreign exchange remittances.
Between 2004 and 2014, the Philippines grew its global market share in BPO from 4 percent to 12.3 percent, with the Oxford business group forecasting a 19 percent share by 2020. And with the government’s current push for digital adoption, the Philippines is expected to claim an even stronger position as a leading offshoring destination in the short term.
The cost savings of offshoring certain business processes are well established. However, these benefits have until now mainly been realized only by large enterprises, which have the knowledge and capacity for successful internationalization that many small-medium enterprises (SMEs) lack.