BPO: Bagong Pinto ng Oportunidad

I’ve been hearing about BPOs for a while now. To my understanding, beforehand, BPO was an alternate term called to call center agents. I wasn’t wrong, but apparently, I was misinformed. BPOs or Business Process Outsourcing encompassed a much larger scope than just call center agents.

For common understanding, Business Process Outsourcing refers to companies hiring other firms as service providers to do tasks that are somewhat trivial and would seem less costly if done by outside sources (this is a definition according to my understanding of the definition).

Business Process Outsourcing is actually one of the fastest growing industries in the world. For the Philippines, it is still an emerging industry. One of the dominant and commonly known (as proven by my stereotype of BPOs) type of BPO are call centers. Although it is not the only BPO in the Philippines. There are many sub-categories or classifications of BPOs. There is the KPO or Knowledge Process Outsourcing which requires a bit more specialization, education and skill than normal BPOs. There is also BTO or Business Transformation Outsourcing. From the name itself, BTO refers to the idea of hiring service providers to transform the company/business into a leaner, more dynamic, agile and flexible operation.

As I said earlier, it is one for the fastest growing industries in the world. From 2400 employees in 2001, BPO companies rapidly grew to the point of employing approximately 200,000 people (in different companies) by 2006. 

For me there are two good things about this emerging industry. One, since it is an emerging industry, employment opportunities will certainly fly by giving our growing population more job opportunities. In addition to that, BPOs have a wide range of jobs from IT, to human resources, etc. People are given the opportunity of choosing a certain field of their specialization, especially for KPOs which require more training. Moreover, the BPO centers are not all congested in Metro Manila. They’re scattered around the country. For example, in Baguio, Bacolod, Cagayan de Oro, Cebu, Clark, Dagupan, Davao, Dumaguete, Lipa and Iloilo; although most of the centers are still in Metro Manila.

The second point is that this is a good way for our country to compete internationally. Having overtaken Malaysia as a BPO center, the Philippines is now set to challenge India and China. This will bring an image of us as a country that is ready to cope with the changing times and compete with big countries. We should capitalize on our strengths but also never forgetting to strengthen our weaknesses.  





Solano, Morris Medel F. 



3 thoughts on “BPO: Bagong Pinto ng Oportunidad

  1. What do you think of the Philippines’ growth being dominated by the services sector? Do you think it is right to focus in this particular sector?

  2. Prof Fabella talked about this in the NERC last March 10 (if I’m not mistaken)… I was late but I still got to hear the last few minutes of Prof Fabella’s talk. He showed a graph of the pattern of industy, manufacturing, service and agriculture sector of different countries including the Philippines. The Philippines showed a pattern that was quite the same as those of 1st world countries. Our manufacturing and industry were negative but our service and agriculture was positive. Although we show the same pattern, obviously, it won’t be true that we should be experiencing economic prosperity. Therefore, I agree with sir Fabella in saying that we should first develop our industry! our manufacturing! our power supply! We need to focus on improving policies in these and developing them to bring growth to our country.

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