PH Expected to Top Call Center Outsourcing Destination

The Philippines is expected to top the information technology and business process management (IT-BPM) global landscape, this is due to the emergence of contact centers in various provinces despite the threat of artificial intelligence, as stated by Benedict Hernandez, President of the Contact Center Association of the Philippines (CCAP).rnAs per Hernandez in their recent briefing wherein they announced the organization’s annual conference, the contact center sector will continue to accumulate over 73,000 jobs annually to 1.2 million workers in 2022 from 751,000 last year.rnRevenues are expected to have a yearly 8% growth in the next six years, amassing a total of $20 billion compared to last year’s $12.8 billion.rnBoth approximations include the impact of artificial intelligence which may result to mass layoffs.
“Net, there will be growth, we are not going to decline, nor stand still,” stated Hernandez.rnThe CCAP President added that the industry’s demand is evolving from mid-range to more complex jobs while clerical tasks are being automated. As a result, the latter’s share would deflate to 27% by 2022 from last year’s 47%.rnBefore, the contact center sector was typically front office. But nowadays, the industry is now able to handle backend tasks such as accounting and finance, human resource, procurement, and marketing. Just like how Coefficients Co. Ltd. started. The local business process outsourcing company started with back office processes but now offers a variety of services including project management, business consultancy, 3D designs, business analysis, and sales and support operations for a major US telecommunication service provider.rnTrends seem to point to telecommunications, healthcare, pharmaceutical, and insurance as the largest growth contributor in the country’s BPO sector. rnAs Hernandez stated, clients in the majority of the clients in the past few years had been US-based companies, but now there’s a diversity. European and Asia-Pacific clients are now included in the mix, the latter mostly influenced by Australia which comprises 15% of the market. North America, however still has the majority of the shares with 72%.
“We have diversified industries and markets,” Hernandez said.rnHernandez stated that the diversification and shift to complex jobs would greatly affect the country’s educational system, human capital development, as well as the investors in digital technology.rnAccording to Frost & Sullivan’s study, the IT-BPM industry as a whole would approximately lose 40,000 jobs due to automation.rnConsidering that the outsourcing market has an annual growth of 6% - it is expected to be valued at $250 billion by 2022 as compared to last year’s $166 billion – and Philippines’ growth pace would suffice to take the industry to greater heights even after the impact of artificial intelligence. rnAs a matter of fact, the country’s share to the global outsourcing landscape is expected to grow as much as 15.5% in the next five years as compared to 12.7% of last year’s.
“We -- the Philippines and India -- still dominate the (outsourcing industry). We have owned the large piece of market and we invest continuously to maintain the dominance,” Hernandez said.rnThe projected 8% growth is significantly slower than the 16-18% growth rate the BPO is getting. As per Hernandez, “It is more tempered but it we are still in high single growth environment factoring geopolotics and technology,” referring to the wildcard stance of the US based companies in outsourcing work to the country.rnCCAP is set to hold their “Contact Islands” conference in Shangri-La Resort in Boracay on October 11 and 12. The said conference will discuss the crucial industry trends such as the impact of robotics, artificial intelligence, data analytics, and other major technologies, on the industry and workforce.rnWhile the country manages to remain the 2nd top outsourcing destination, a bit behind India, experts are optimistic that PH will eventually bag the top spot amidst the threat of automation and China’s booming outsourcing market.