Top 5 Countries That Excel in BPO Today

The COVID-19 pandemic has changed the world as we know it, and as we enter into this new normal, it’s more encouraging to look at alternative management services for your business. The BPO industry has been around for years catering to companies looking to expand their businesses while maximizing their cost efficiencies. There are certain destination countries that are ripe with skills and talents as the global demand for business management grows.    

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Here are the top countries that excel in BPO (Business Process Outsourcing) today:

PHILIPPINES

The Philippines is one of the leading outsourcing destinations in the world. Filipinos speak with a neutral accent which makes for a more understandable spoken English. That’s why the Philippines is the center for outsourcing customer support services. The IT-BPO sector in the Philippines is also making competitive strides among other countries.

Here are some quick facts on the Philippines and the BPO movement:

• The Philippines has a 97.9% literacy rate and it ranks #20 in the global English proficiency rating.
• According to Deloitte, “the Philippines has one of the fastest-growing economies in Asia”.
• The Philippine government shows full support of the outsourcing industry by establishing the IBPAP (IT and Business Process Association of the Philippines) in 2004.
• By the end of 2020, the Philippine outsourcing industry is expected to reach a total income of US$55 billion.
• According to IBPAP’s roadmap, the Philippines’ share on the global IT-BPO market is expected to grow by 15.5%.
• The same IBPAP roadmap projected that there will be mid-to-high level skilled IT-BPO jobs by 2022.

INDIA

While the Philippines is the outsourcing choice for customer service, India now specializes in more technical BPO services, which are IT and software development. India still remains as one of the BPO giants by offering an array of outsourcing services from call centers to tech services for nearly two decades now. In India, the BPO industry employs more than 1.1 million workers, and over 500 companies in the country provide outsourcing services on a global scale.

Here are some quick facts on India and the BPO movement:

• Like the Philippines, the Indian government also fully supports the outsourcing industry. As early as 1988, the NASSCOM (National Association of Software and Service Companies) was established.
• India ranks as the 3^rd largest economy in the world following the steps of the US and China, respectively. 
• According to the Hindustan Times, the Indian BPO industry is set to become a US$54 billion industry by 2025.
• India will become the forefront when it comes to artificial intelligence and machine learning services since 40% of the IT-BPO workforce will upskill even further in the next 5 years, according to NASSCOM. 

MALAYSIA

Similar to India, Malaysia also boasts of its IT-BPO services. Malaysia, a contender that is up and running, has gained renown for its stable business environment and distinguishes itself as one of the most desirable outsourcing destinations in Asia, particularly excelling in tech-related services.

Here are some quick facts on Malaysia and the BPO movement:

• Although Malaysia only has a 1.7% share of the Asia-Pacific BPO market, the Malaysian BPO industry is expected to increase to a 7.9% market share by 2021.
• Outsourcing Malaysia is the official governing body for BPO-related developments in Malaysia.
• In terms of the economic landscape, “Malaysia is one of the most open economies in the world”, according to the World Bank.

BRAZIL

Moving towards the other side of the world, Latin America also offers promising outsourcing destinations. One Latin American country that’s rapidly emerging in the BPO world is Brazil. With the recent passing of its outsourcing law, Brazil can now outsource all kinds of services to global businesses. The country also competes with India and Malaysia with its IT outsourcing offerings.   

Here are some quick facts on Brazil and the BPO movement:

• Brazil has one of the most robust economies in South America, making it one of the most influential countries in the continent, according to BBC.
• In 1986, stakeholders established ABES (Brazilian Association of Software Companies), a non-profit organization dedicated to fostering the growth of the IT business sector in Brazil.
• In 2017, a study made by AT Kearney placed Brazil in the #5 spot in the top outsourcing countries based on financial attractiveness, people skills, and business environment index.

MEXICO

Mexico is another Latin American country that’s making a mark in the BPO market. One advantage of Mexico in the outsourcing arena is its proximity to other American countries such as the US and Canada. Not to mention, Mexico has a strong bilingual workforce that attracts global businesses. The country specializes in IT-services and HRO (Human Resource Outsourcing).

Here are some quick facts on Mexico and the BPO movement:

• The BPO industry in Mexico is valued to be at US$2.9 billion in 2018.
• In 2019, an estimated 900 companies in Mexico were providing outsourcing services, with almost 200,000 professionals actively working in the BPO industry.
• Mexico has a huge talent pool of almost 500,000 IT professionals ready to provide excellent services to global clients.
• In the 2017 AT Kearney study, Mexico ranks #8 in the global outsourcing desirability index.

The Outlook

These 5 countries certainly take the cake when it comes to providing excellent BPO services to countless businesses worldwide. As the BPO industry grows, there will be more countries that will become hotbeds for outsourcing services. In fact, according to this article, the BPO market is projected to be worth US$406.8 billion by 2027. The evolution of the BPO industry is also rapidly increasing as RPA (Robotic Process Automation) and IT services are gaining traction. This graph shows us that the RPA market has the potential to grow US$10.4 billion by 2023. For the IT-BPO market, it’s likely to reach US$98 billion by 2024.

With the current state of the world, these facts only tell us that the BPO industry will have an upward trajectory for the decades to come.