BPO Industry: Philippine’s Sunshine Industry


BPO Industry: Pioneering Years

In 1992, Franz Holz from the Accenture Group marked the first landing of business outsourcing here in the Philippines. Almost a quarter of a decade later, the BPO industry grew from that first landing and have eventually changed the economic landscape of the country – altering the future of the coming generations.

Three years after, the Philippine Congress passed Republic Act 7916 also known as the Special Economic Zone Act of 1995. The act encouraged foreign investors to plant more companies because of less area requirements for development and more tax incentives in the country at that time. The act was amended in 1999 as RA 8748. This act fostered business outsourcing in the country leaving opportunities to grow not only for the country’s economy but ultimately for every unemployed Filipino.

Becoming the Sunshine Industry

As the years went by, the promise of the BPO industry gained a clearer perspective. Economy was getting better. GDP constantly increased each year as more BPO companies sprout in the developing archipelago. From 2000 to 2011, the industry accounted for 0.075% to 4.9% of the country’s total GDP. Employment rate also rapidly increased. In 2013 alone, the industry generated 900,000 employments for Filipinos and is projected to rise to 1.3M this 2016.

Indeed, we are in the blaze of the “sunshine industry”. Filipinos and even the entire world cannot deny how it improved our way of living as our country is deemed to be the BPO capital of the world. It helped a lot of students, fresh graduates, professionals, even stay-at-home parents to have a stable career, to grow professionally and to provide for their families and loved ones. It changed the idea of success, career and service.

Moreover, World Bank estimates that it can generate up to $55 billion by 2020 which is estimated 11% of the country’s GDP. This is a projection that ensures us how the blaze is here to stay.

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