EUROPE – The results of the Global Value Chains (GVC) survey covering 2021–2023 are out, and the study found that cost efficiency remains the primary driver of European companies’ global outsourcing: 34.1% say it reduces labor costs, while 27.8% say it reduces other costs.
According to GVC, 72.8% of EU companies have outsourced a mix of their core and support functions to other EU countries. For those that outsource outside the EU, their top choices are India (18.6%) and the U.K. (17.1%).
The top business functions they outsource are:
- Administrative and management
- Information and communication technology services
- Production of goods and materials
- Marketing, sales, and after-sales services
- Other services
A Market Opportunity for the PH IT-BPM
As EU companies continue to seek cost efficiency in outsourcing, this creates an opportunity for the Philippines’ IT-BPM industry to present itself as a compelling alternative to India and the U.K., with its strong talent pool, competitive labor costs, and proven track record in global outsourcing.
In addition, the expansion into the EU market provides the industry with a strategic buffer against U.S. policies such as the Keep Call Centers in America Act and the $100K H-1B worker fee.
Not only does this move reduce the industry’s dependence on the U.S. market, but it also opens new revenue streams and strengthens its resilience as a global outsourcing hub.
LOGIX BPO Content Team
The Logix BPO Content Team is made up of writers who work directly inside the outsourcing world. We sit alongside operations managers, client success leaders, and workforce strategists running call centers, RPO programs, and back-office teams across the Philippines, UK, Australia and Us.
Our content comes from real collaboration with teams managing live client accounts in healthcare, fintech and tech consulting. We’re embedded in Logix BPO’s client delivery work, so we write what we see; the strategies and systems our teams actually use to build and scale outsourcing solutions.
