In the last decade, the Philippines has established itself as a world leader in BPO services. The industry, known for attractive labor costs and a highly skilled workforce, is expected to reach US$29 billion in revenue by 2022 - up from US$26 billion in 2019. While worldwide demand has increased for outsourcing services and the Philippines government has played a role in supporting the industry, the success of BPO vendors has as much to do with the country's education system as anything else. Curriculums beginning at an early age provide an excellent training ground for young Filipinos to hone their English-language skills and knowledge of advanced technology, making them ideal candidates for work in this booming industry.
"The Philippine higher education system is one of the best in Southeast Asia. The country has the highest literacy rate in all of Southeast Asia, with 96% of its population qualified to read and write. And the training for the in-demand jobs of the BPO industry begins early. In the Philippines, the educational curriculum is closely modeled after the US system, with special attention given to English proficiency skills," says Ralf Ellspermann, CEO of PITON-Global, a leading mid-sized contact center in the Philippines.
The country has 730 universities and colleges - more than any other nation in the world - and these institutions are actively involved in the country's efforts to boost BPO. The University of the Philippines is considered as one of the best higher education institutions in Southeast Asia and is ranked as one of the top three universities in Asia. Information and Communications Technology (ICT) education is also a priority at the state-run university students enroll for degree programs on information technology every year.
Graduates from these educational programs are equipped with excellent English skills and technological knowledge, as well as a great work ethic, which is why they're sought after by premium BPO companies in the Philippines.
The Philippines spends US$339.2 million annually to train students in technical skills that are sought-after by BPO companies, such as accounting and finance, medical transcription, IT programming, and web design.
This is in addition to the US$324 million spent on the government's English Pre-Employment Training (EPET) program, which was introduced by the Technical Education and Skills Development Authority. This program helps students further hone their communication skills in an English-speaking environment, so upon graduation, they're able to go directly into the BPO industry. It's working; call centers in the Philippines are now the global leaders in voice-based customer service.
The government's financial assistance is only part of the story. Universities also encourage students to take part in apprenticeship programs that prepare them for BPO work. This allows students to get practical experience in real-world situations while still studying. Many of these apprenticeship programs last between three and six months.
The rapidly expanding offshore outsourcing industry actively recruits fresh graduates from universities in Metro Manila. And all this effort at training and education has paid off, as the Philippines has grown into the outsourcing capital of the world. "Dozens of industry-leading BPOs are in the Philippines and some of the biggest companies in the world, such as Amazon and PayPal, have captive operations in country, specifically to capitalize on the tremendous skill and value of the labor force located here," says Ellspermann.
With BPO jobs being one of the most sought-after white-collar jobs in the Philippines, universities have been instrumental in preparing students for this job market, confirming the commitment of the Philippines to continue investing in the long-term growth of the industry. For SME's looking to reduce costs and provide world-class services, this is one more reason migrating BPO requirements to the Philippines is an astute move.