The Multiplier Effect: How BPO Companies Spur the Philippine Economy
The business process outsourcing (BPO) industry in the
Philippines continues to grow, thanks to government support and the
availability of well-educated, fast-learning, and service-oriented workers. From
just around 300,000 workers and estimated revenues of $4.9 billion in 2007, the
BPO industry has employed some 1.03 million people and generated $18.4 billion
in revenues by the end of 2014. Given the tremendous growth, the industry is
optimistic that incoming opportunities will spur further growth.
Wherever BPO Companies Are, There
Goes the Local Economy
Looking to evenly distribute the economic benefits of outsourcing
all over the country, the national government has established regional/special
economic zones in Next Wave (tier 2 and 3) Cities like Bacolod, Baguio, Cagayan
de Oro, Davao, Dumaguete, Iloilo, and Iligan. This allows call centers and BPO companies to expand
outside first-tier Metro Manila and Metro Cebu, previously considered the established
IT hubs of the Philippines.
The excursion of outsourcing companies in cities other
than Manila and Cebu has helped diversified the local economic base and even
strengthened existing local businesses. So while a Next Wave city strives to
meet the demands of large BPO
companies, local businesses also work to cater to the influx of BPO
workers in the city. It is not only the local government that is involved, but
also the local chamber of commerce.
In other words, as BPO companies expand, so are businesses outside
BPO. Many job-seekers may not know it, but call centers aren’t the only ones
hiring. Supporting industries like food and beverage, retail, real estate, and rest
and recreation also post job openings where everyone can apply, even applicants
who fail to make the cut for a call center job.
Aside from creating well-paying (direct) jobs for
Filipino professionals, outsourcing also resulted in more than 2 million
secondary jobs from the other sectors, which include:
- Real estate – BPO workers are now investing in residential properties as their employers do so in commercial spaces. BPOs are the primary force behind the rental market. Real estate companies now venture in Next Wave Cities, especially Iloilo, Bacolod and Cagayan de Oro, to cater to BPO workers, the new middle class.
- Telecoms – Telecoms provide BPO companies with a wide range of IT solutions (voice, data, Internet and managed services).
- Office and IT equipment suppliers – Business is open for shops that retail office supplies, computer hardware and photocopiers.
- Convenience stores, shopping malls and coffee shops –Such businesses sprout near call centers to cater to BPO employees who have high disposable income and purchasing power.
- Banks – Banks see good business in areas where BPOs abound. BPO employees draw their pay through ATMs.
- Rest and recreation – BPO employees have a great sense of fun and travel. BPO companies arrange company outings in popular destinations for their employees to unwind.
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