Philippine Outsourcing Trends Businesses Need to Know in 2023

Outsourcing to the Philippines is a business option lots of companies take advantage of, and it has been this way since 1992. This is due to the fact that the country has an almost unlimited number of highly skilled workers who speak great English, have friendly personalities (which is great from a customer service perspective), and are easy to teach.

Now, add to this the fact that the salaries of these workers are a mere fraction of what similar employees get in other countries like the UK, US, and even AU. What do you get? You get the perfect recipe for the continuous growth of the BPO and outsourcing industry in the country.

With all the savings companies can make utilizing outsourced manpower from the Philippines, it’s no wonder that more and more businesses look towards this archipelago for their customer support, virtual assistance, and technical support needs. And it’s not going to stop anytime soon. In fact, even with the pandemic that started in 2020, the industry saw steady growth in the country.

Outsourcing to the Philippines and the Pandemic

Even when people were being told to shelter in place to avoid contracting the dreaded Covid-19 virus, outsourcing to the Philippines continued. Businesses were quick to shift from an office-based setup to work-from-home operations that allowed them to continue serving their customers even during such trying times.

This also allowed workers from the industry to continue their employment and to provide for their families despite the global economic shutdown that the pandemic ushered in.

Philippine Outsourcing Trends to Look Out For in Near Future

Fast forward to 2023, and this work-from-home trend seems to have continued (with a predicted increase worldwide), with lots of companies opting to allow people to do their jobs from the safety of their abodes. Some companies soon introduced hybrid work setups after vaccines were made available, and this allowed for in-person collaborations between team members, which also helped foster stronger team bonds.
With that said, are these two the only Philippine outsourcing trends people can expect in 2023 and onwards? In reality, there are lots of trends for you to look out for this year (and in the coming years) when it comes to outsourcing to the Philippines. Here are the five more notable ones that you should take note of:

Increase in Knowledge Process Outsourcing

While one of the key offerings of the country in terms of BPO and outsourcing services is still that of call center and customer support, there seems to be steady growth in the knowledge process outsourcing sector of the country. This includes the outsourcing of work and tasks to people who are experts in the field of data analysis, accountancy, technical analysis, and many more.

Other sectors that belong to the KPO sector that are also likely to see an increase in interest from businesses worldwide include legal, medical, and even management consulting.

Increase in Recruitment Process Outsourcing

Another trend to look out for in the coming years is the increase in the need for third-party assistance to find suitable candidates to fill various positions in companies worldwide. This is called RPO, or recruitment process outsourcing, and is slated to see a boom in the coming years. The primary reason for this is the savings companies get from it and the time that’s saved by trusting others to find who they need.

Why will RPO see a marked increase in the Philippines? This is due to three factors – great infrastructure that’s already in place, a wide selection of skilled candidates in the talent pool, and reasonable labor costs.

More Startups and Small Businesses Will Use Remote Workers in the Philippines

Hiring remote workers from the Philippines became a steady trend during the pandemic and continues to be a trend that shows no signs of stopping. And if you think only huge conglomerates did this, think again! This wasn’t something that only large companies did. Even smaller businesses and startups saw the merits of hiring skilled and lower-costing workers from the Philippines.

This trend actually began sometime in 2019, and during the pandemic, it grew steadily, helping businesses stay afloat despite the uncertainty the virus brought in the following years.

Talent Upskilling

Here’s one of those Philippine outsourcing trends that most businesses are sure to follow and love. Continuously training and upskilling the people they hired (and will hire) this year and onwards is seen as a worthwhile investment. In the wake of AI, and the expected rise of other technological innovations in the coming months and years, upskilling or additional training is needed.

Aside from keeping current BPO and outsourced workers up to date with their skill sets, this also helps keep the worker pool filled with a variety of viable candidates for various jobs.

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Acceptance and Integration of Rising Technologies

More and more people are starting to use AI in everything they do – from writing to coding to creating digital imagery. This is seen as a trend that won’t go away soon and is something that some Philippine outsourcing companies are starting to accept. This is why hiring people who have started to use such tools and even having people learn to use these have become rampant these days.

This acceptance has taught outsourcing companies that offer digital marketing services to their clients to utilize such tech to their advantage. Aside from speeding up some of their work, they generate new and fresh ideas with the help of AI. The human touch comes in the refinement of such ideas and in the proper utilization of these tools for the benefit of their stakeholders.

Why These Trends Are Slated to Rise in the Coming Months and Years

The continued success of the BPO industry in the Philippines, and the trends that seem to be driven by this upward trajectory, can be attributed to a number of factors. For starters, around 10% of the country’s GDP is due to the increase in revenues from this sector.

Another reason for these trends is because of a government initiative to expand BPO services in the country via their Digital Cities 2025 Initiative. This is spearheaded by the DICT and various associations that want to see the continued rise of this industry in the Philippines. This not only helps other cities in the country to have their own Special Economic Zones for BPO companies but also helps increase employment opportunities in these said areas. This initiative will also help to decongest the more heavily populated cities in the country by taking these tech jobs to these more far-flung regions.

It should also be noted that trends like upskilling and the increase in RPO as well as KPO needs is due in part to the plans of the US to increase investments in the country. This is part of the “friendshoring” plans of the US. Included in these plans is SPEED or Strengthening Private Enterprise for the Digital Economy, which is a project that centers on improvements in digital connectivity and infrastructure in the Philippines, with the help of USAID.

How Logix BPO is Embracing Rising Philippine Outsourcing Trends

Logix BPO is one of the companies in the country that take such trends to heart, and as such, have begun integrating such ideas into the company’s bloodstream. Aside from KPO offerings like Outsourced Accounting, the company has also continued to provide groundbreaking RPO services to its clients worldwide.

It also continues to emphasize continued learning for all its employees, encouraging them to learn as much as they can about emerging technologies and improving their skills. This helps the company provide its clients with workers who have the skills and knowledge they need, without adding such training costs to the clients themselves. At the same time, this helps the people under the Logix BPO banner increase their chances of promotion, or even simply to remain highly employable.

Keeping abreast of such trends benefits not only Logix BPO as a company but everyone associated with it – from the companies that trust it with their outsourcing needs to the people looking for jobs and down to the families of those who find employment via Logix BPO.