Resilience in the face of uncertainty is something not many industries can claim. But the rapidly growing and stable BPO industry is resilient, and flourishing. Outsourced IT and customer service functions are some of the busiest places to work, with teams working 24/7 to help customers all over the world with everything from login issues to managing insurance claims.
A recent report from Gartner forecast incredible growth on IT spending around the world, and with technical support, software development teams and customer service, IT is one of the busiest departments in the BPO industry.
Here are five ways that the BPO industry shows the rest of the world just how resilient it really is.
1. Benefitting from the worldwide IT spending increase
Gartner’s IT report shows that spending on IT around the world is predicted to reach $4.6 trillion this year, which is an increase of 5.5% on last year. As the world moves to a more digitally focused future, this kind of spending seems more than reasonable. It’s the total spend on software and IT services that are expected to show the most growth, and thanks to globalisation and smart BPO services, you can access some of the best offshore software developers to support your in-house functions.
2. Resilience in face of global economic turbulence
According to WorldBank, the Philippines bucked the globally turbulent economic trend by showing 6.4% growth in the first quarter of 2023. This kind of country-wide resilience is key for the BPO industry in the Philippines, and is great news for the country’s workforce. Not only that, but the BPO industry in the Philippines contributes almost $30 billion to the country’s economy each year, proving strength in the face of global uncertainties.
3. BPO industry will resist the skilled labour shortage
Layoffs in the tech sector are known to be affecting the industry, but that’s one area where the BPO industry in the Philippines has a strong advantage. Seventy percent of the BPO sector is in the Philippines, and the country also holds 10–15% of the global BPO market. But that’s not all, because the BPO industry in the Philippines is growing by 8–10% every year and isn’t showing any signs of slowing down.
4. Outsourcing will save money over hiring in-house
The average costs of hiring a single employee in-house in the UK can be eye-wateringly high. In fact, some estimates including an annual salary, office rents, insurance, training, and recruiter fees added together can bring the cost to more than £80,000 per head. Compared to the costs of outsourcing an entire function, that figure might seem small, but if you have to repeat the in-house hiring process again and again due to employee attrition, it can work out cheaper in the long run to outsource.
5. Demand for tech talent is easily met in the Philippines
The skills shortage affecting much of the tech industry can be easily avoided when you choose to outsource tech functions to the Philippines. More than 60% of the labour force in the Philippines have benefited from further education, and according to Statista data released last year, 47,000 Filipinos graduated with a degree in IT in 2020.
What’s next for the BPO industry?
While the forecasts look promising for global IT spend, IT services are just one function available in the bustling world of the BPO industry. To find out more about BPO in the Philippines and to keep up to date, make sure you follow the Indigo 21 blog.