INTRODUCTION
On the back of successful offshore delivery of voice-based
customer service support, the Philippines established itself as the
second-largest offshore destination (after India) in the rapidly growing Business Process Offshoring (BPO) market.
As the BPO market evolves, we expect 90% of future BPO
opportunity to derive from non-voice BPO functions. Given this significant
market potential, non-voice BPO represents an attractive opportunity segment,
and will be key to the future growth of the Philippines’ BPO market. While
there is a well-understood value proposition for voice-based BPO services from
the Philippines, there is currently limited awareness of the capability and
potential for non-voice BPO. However, even today, BPO delivery from the Philippines
is no longer limited to voice-based services, and a number of companies are
already leveraging the Philippines for delivery of a wide array of non-voice
BPO functions. This research examines the Philippines’ BPO market with a
specific focus on current capabilities and future potential for non-voice BPO
services.
SCOPE
This report focuses exclusively on the non-voice BPO market
in the Philippines and includes activity by suppliers and captives.
We focus on:
- The
evolving BPO opportunity
- The
Philippines non-voice BPO market activity and maturity
- Operating
model implications and role of the Philippines for non-voice BPO delivery
- Key
implications for stakeholders
CONTENTS
This research report provides an overview of Philippines
offshore market with a specific focus on the non-voice BPO market. It examines
the growth of the Philippines’ non-voice BPO market and includes an assessment
of current activity and maturity for a wide array of non-voice BPO functions.
This report also provides tactical operating implications for companies seeking
to deliver non-voice BPO from the Philippines, highlights challenges to growth,
and includes perspectives on the role that the Philippines can play in the
global services supply chain for non-voice BPO. In addition to providing key
implications from the research for buyers, providers (suppliers and captives)
and the industry, this report includes case examples of 10 companies leveraging
the Philippines for non-voice BPO delivery.
Some of the findings in this report, among others, are:
-
BPO
has a significant growth potential with an addressable market opportunity of
US$220-280 billion. While voice-based services constitute a bulk of the BPO
market currently, non-voice and back-office processes contribute 90% to the
future market opportunity
- Success
in voice-based BPO services has made the Philippines the second largest
low-cost BPO destination after India
- A
number of companies are already leveraging the Philippines for a wide array of
non-voice functions though the scale of operations is low
- Most
current activity and scale in non-voice BPO is concentrated on transactional
services (e.g., Finance & Accounting, medical transcription)
- Given
the nascent stage of the market and the prevailing talent issues, the
Philippines is unlikely to replace India as the nerve-center for non-voice BPO,
but has the potential to emerge as an important satellite delivery location