Philippines’ outsourcing industry growing strong: World Bank
The Philippines’ business process outsourcing (BPO) industry is healthy and growing, according to the World Bank in this story from the Philippine Daily Inquirer. Despite some recent reports that the industry had seen recent declines, the World Bank’s report showed a healthy services sector actually making up for lost tourism revenue.
US based companies have been saving around 80% on operation costs by outsourcing administrative functions to the Philippines. Low labor costs, available skills, English language ability and government promotion including tax incentives had all worked to grow the industry in recent years. New BPO firms have a tax holiday of eight years, with only minimal income tax requirements thereafter.
It’s estimated that around half a million Filipinos work in business process jobs and more than 400,000 new graduates join the total workforce every year, many of them with exactly the kind of skills foreign companies are seeking. The country may even have taken the BPO crown from India, which has enjoyed more recognition until now as the Western world’s outsourcing capital.
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