diversification BPO industry

Diversification: A Big Growth Factor for the Philippine Call Center Sector

The Philippine has been dubbed as the “Call Center Capital of the World” as its call center expertise has led the local BPO industry into new heights, although recently, the industry landscape is shifting. Diversification is becoming a theme of the industry the past few years. The Philippines is now more than just a “call center specialist”. There is now an apparent diversity in three aspects of the industry–diversity in services, focus markets, and business locations.

Diversity in Services

Call center services are starting to evolve and become industry specific. The Philippines is developing its mastery in providing services in certain areas like health care and finance. The PH BPO industry is also looking to specialize in providing more complex services such as end to end contact center solutions and comprehensive business assistance. Other countries are looking to take advantage of Filipinos’ creative skills as well, as an increase in partnership and investment opportunities are seen in animation and game development outsourcing.

Diversity in Focus Markets

New opportunities are seen as the Philippines start to take in more BPO demand outside North America. The country is looking to develop partnerships in the Asia Pacific region as companies in Australia and New Zealand look to further expand their operations in the Philippines. European nations are joining the mix as well, particularly Germany, as Europe’s top economy has openly expressed its interest in the country’s BPO capabilities and infrastructure opportunities. While 70% of the demand still comes from North America (majority of which comes in from the US), Philippine BPOs will soon have a more varied clientele coming from these emerging markets.

Diversity in Business Locations

The areas of operation for call center are focused 3 main business districts in the Philippine capital: Makati, Ortigas, and Bonifacio Global City, but the rapid growth of the BPO sector is driving property development to other parts of the country especially in the rural areas. According to the chairman of the Executive Committee of the IT and Business Process Association of the Philippines (iBPAP), Benedict Hernandez, the industry’s ideal target is a distribution of 50% of BPO companies in Metro Manila, the other half outside the traditional business districts. iBPAP hopes to attain this goal by 2020.

The BPO industry is set to become the Philippines’ most profitable industry as BPO diversification will boost revenue to a projected $20.4 B according to the Contact Centers Association of the Philippines (CCAP).

The BPO sector’s potential hasn’t even scratched the surface yet. It is rapidly evolving and changing the economic and actual landscape of the Philippines. Potential roadblocks are seen, but nevertheless, sky is the limit for Philippine BPO.

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