The year is 2010. The Philippines surpassed India and took the crown as top country to outsource. Fast forward to five years and the industry amassed a total gross revenue amounting to US$ 22 billion. It directly employed 1.2 million Filipino workers. Additionally, the industry has generated some 2.5 million indirect jobs within the following industries: office building construction, transportation, food and catering, security and all that follows.
The Country and Industrialization
Way back in 2014, the country’s GDP by purchasing power parity (GDP/PPP) was estimated at US$ 692 billion, more or less. Purchasing power parity measures and estimates what the exchange rate for two countries should be in order to be at equal odds. Steadily for the past decade, the Philippines has been transitioning from an economy based solely on agriculture, to one based more on both services and manufacturing.
In recent memory, the Philippine economy has been stable enough in growth, and continues to rise at a rate of 6-7% per annum. Experts predict that by the time year 2050 arrives, it could be possible for the Philippines to be the 16th largest economy all over the world.
Outsourcing and the Economy
Both the IT and BPO industries deserve credit for the recent economic activity. The sharp rise in the white collar workforce spawned a generation that has a substantially enlarging middle class. Historically, the middle class has been behind most of the spike in the country’s economic performance. The spending of this class trickled down to the country’s financial development and economic growth and has resulted in a few investment status upgrades from well-known credit rating agencies.
By the end of the current year, 2016, both the above-mentioned industries will be projected to attain the target of grossing US$ 25 billion that was set years ago, alongside directly employing 1.3 million workers. This accounts for some 8% of the Philippine GDP. In the global outsourcing market, it equates to at most 15% share.
More good news is that work has had its kickstart on a 2022 roadmap, and the Philippine government is on the verge of developing a dedicated Department of ICT (Information and Communications Technology) to serve as the lookers and the marketers of this essential piece of the Philippine economy.
Outsourcing and the Philippine Government
The Philippine government has openly acknowledged the value of outsourcing industry as a main driving force of economic growth. With dismal graduates-employment opportunities ratio, outsourcing has paved the way for many fresh graduates to enter the working class.
Moreover, the government has been actively promoting provincial locations outside of Metro Manila for new and upcoming outsourcing companies. These past few years, other than the nation’s capital including Metro Cebu, some other hotspots in the country include Bacolod, Davao, Clark, Ilolo and Cavite.
In the end, it is safe to say that the Philippines’ economic growth is guaranteed to rise up even further with the help of the outsourcing industry.