Business Process Outsourcing or BPO started in the Philippines in 1999 when Cyber City set up an outsourcing facility at the former USAF base in Clark and has been followed by many more. When you say outsourcing it means outside resourcing of companies in countries like USA, Canada, Australia, UK etc. to other countries like India and the Philippines. Example is an American customer of Verizon (equivalent to Smart or Globe in the Philippines) will call their customer service number in the US and then the call will be routed to the Philippines to be answered by a Filipino customer service representative. Calls can be as simple as balance inquiry on credit card to as complex as trouble shooting on defects of a gadget. BPO involves payroll, human resources, accounting, information technology, customer call center relations etc.
Today, BPO industry in the Philippines has jumped from $1 billion to $18 billion and is expected to earn $25 billion in 2016. Making BPO the biggest contributor to the Philippines gross domestic product or GDP and by 2017, BSP and PSE have projected that BPO will overcome the value of remittances from OFWs. As of Aug 2014, The Philippines has overtaken India as the largest hub for call center in the world with more than 1 million Filipinos working in the industry. BPO also created more opportunities to other industries like fashion, food, commercial buildings, gadgets etc.
In Lipa City, TeleTech in Robinsons Lipa with corporate headquarter in Denver, Colorado became a pioneer call center in Batangas Province which started to hire on June 2006 and followed by ACS now Alorica in SM City Lipa with corporate headquarter in Irvine, California. Last April of this year, The Results Company with corporate headquarter in Fort Lauderdale, Florida opened in Fiesta World Mall. These three major call centers in Lipa, comprising of about 4,000 employees, put Lipa City in top 10 Next Wave Cities in the Philippines along with Baguio City, Davao City, Dumaguete City, Iloilo City, Metro Bulacan (Baliuag, Calumpit, Malolos City, Marilao, and Meycauayan City), Metro Cavite (Bacoor City, Dasmariñas City, and Imus City), Metro Laguna (Calamba City, Los Baños, and Sta. Rosa City), Metro Naga (Naga City and Pili), and Metro Rizal (Antipolo City, Cainta, and Taytay).
What do you think is the next major BPO company to invest in Lipa?
sources: asiabriefing, inquirer, bworldonline, bpoc.uk
This is a great information and examples, thanks for sharing!
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