Fueling the Rise: The Extraordinary Growth of the Philippine BPO Industry
The Business Process Outsourcing (BPO) industry in the Philippines has experienced remarkable growth, expanding by 46% annually since 2006. Initially focused on call centers for customer service and sales, the industry has diversified its operations. The two prominent segments today are BPO Voice and Non-voice. The industry’s success can be attributed to three key factors: talent, infrastructure, and a favorable business environment, all at competitive costs.
Challenges: Ambitious Targets
The Business Processing Association of the Philippines (BPA/P) recognized the need to propel the industry even further. In 2007, BPA/P launched “Roadmap 2010” with a projection that the industry could generate revenues of up to USD 13 billion, employing 900,000 FTEs, if it outpaced the global market growth. While the industry did experience growth, it fell short of these ambitious targets.
Under the subsequent “Roadmap 2016,” BPA/P aimed to achieve USD 20 billion in revenue and employ up to 900,000 FTEs by 2016. In an aggressive growth scenario, the industry had the potential to earn USD 25 billion and provide jobs for 1.3 million FTEs. However, these lofty goals remained elusive.
Solution: The Pursuit of Quality Performance
To achieve breakthrough growth, the BPO industry required an industry-wide initiative focusing on enhancing quality performance.
- Establish quality as a way of life to compete with emerging competitors.
- IT-BPO companies have diverse operations, requiring a comprehensive yet adaptable roadmap.
- Operational excellence (OPEX) must become a major objective for sustained success.
Although several initiatives were underway, there was no dedicated focus on improving quality throughout the industry.
To address the need for quality enhancement, BPA/P partnered with ECCI to create the Quality Roadmap—a comprehensive industry analysis report. This report served as the industry benchmark for quality, outlining initiatives aimed at operational excellence and quality skills development among professionals.
Approach: Research, Stakeholder Engagement and Intrinsic Industry Analysis
ECCI deployed a team of industry experts and research analysts to design an approach that followed our renowned yet agile 5D methodology – Discover, Define, Develop, Determine, Deliver.
As part of the process, the team performed desk research on global as well as regional standards and national regulations that are pertinent to promoting quality in the industry. Building on the research, the project carried out a stakeholder survey using an extensive instrument designed to cover companies from different sub-sectors within the IT-BPO industry*, industry associations, key government leaders handling trade and competitiveness, outsourcing, labour and employment. Based on the inputs collected on the current state and industry / functional expertise of the consulting team, ECCI framed a benchmarking structure to categorize organizations into 3 buckets – ‘Average’, ‘Good’ and ‘Best-in-class’ covering performance across talent development, organizational processes and management systems.
Recommendations: Quality Excellence and Industry Transformation
In conclusion, the Philippine IT-BPO industry is at a pivotal moment, recognizing both past achievements and untapped potential. The quality road map outlined serves as a crucial guide for all industry stakeholders to come together and embrace operational excellence. By implementing the process improvement and professional development road maps, from “average to good” and “good to best-in-class,” the industry can soar to new heights.
To ensure lasting impact, effective engagement and collaboration with stakeholders are essential, fostering a culture of continuous improvement and elevating the industry’s global position. The supplemental tools and references provided further reinforce the commitment to meeting international standards, gaining certifications, and supporting professional accreditation institutions.
In the spirit of unity and shared vision, the Philippine IT-BPO industry holds the key to unlocking a future of unprecedented success. The quality road map serves as a rallying call to consolidate efforts, drive innovation, and propel the industry towards an even brighter future on the global stage.
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