Outsourcing 2022: The Philippines Outlook at a Glance

Take a look at one of the world’s top BPO hubs.

2022 is a pivotal year for the Philippine BPO market.

The ongoing global health crisis does not only test the resiliency of Philippine outsourcing companies but also altered the plans and projections set to strengthen its position as a leading BPO hub by the developed world. Despite the challenges brought by this pandemic, the business process management industry remains a pillar of the Philippine economy.

In this article, we rounded up all essential statistics and information about the Philippine BPO industry which you can use in your outsourcing decisions.

First, let’s take a quick look at 2020’s figures.

BPO Industry in the Philippines Statistics 2020

The IT-BPO industry continues to be a leading contributor to the Philippines’ economy, providing thousands of jobs to Filipinos and contributing billions to the country’s gross domestic product.

The shift from low-level-skill tasks into mid- and high-level skills continues because of the changing demands of the global IT-BPO industry.

Along with the projected increase in mid- and high-level skills, the healthcare sector and the animation and game development industry are expected to grow at a faster rate.

Key industry players will continue to move to high-value complex and digital services. The contact center industry will still experience constant headcount and revenue growth amidst the threat of automation.

The Philippines’ fastest growing industry

Created more than 71,000 new full-time, high-paying jobs for Filipinos

Helped reduce low-skill jobs by 29%

Increased mid-skill jobs by 12%

High-level jobs are seen to rise by 19%

Elevated job satisfaction by 73%

The IT & Business Process Association of the Philippines (IBPAP), the enabling association for the country’s IT-BPM sector, collaborates with various government and private organizations to facilitate up-skilling programs that would keep Filipino workers relevant and thriving to the global market.

The Silver Lining of Covid-19

Covid-19’s crippling effect on the global economy has left most SMBs in the United States cash-strapped. Some are still struggling to remain afloat, while some have taken the challenge to ride the tide of change brought by the virus. Larger businesses with bigger capital reserves, on the other hand, also experienced a steep drop in revenues. This is especially true for businesses in the hospitality and tourism industries.

This decline in demand has left some employees in Philippine BPO companies in floating status, due to some clients pulling out their accounts. While these challenges persist amidst the slow rollout of vaccines in the Asia Pacific region, many BPO companies in the Philippines remain fiscally strong.

Here are some key statistics:

  • Investment pledges for January to July 2020 rose by 37 percent compared to the same period in 2019
  • The National Government of the Philippines, through the support of the Department of Trade and Industry, the Philippine Economic Zone Authority, and the Inter-Agency Task Force on Emerging Infectious Diseases bolstered the IT-BPO industry by increasing its capacity amidst the community quarantines and promoting work-from-home setups for new and existing BPO employees
  • 65% of Filipino BPO employees can deliver more complex and varied services for domestic and overseas clients
  • By 2022, the Philippine IT-BPO industry will cover 15 percent of the total global outsourcing needs, according to industry experts
  • BPO in the Philippines is projected to grow by 9 percent every year for the next 5 years

To learn more about the efforts made by the National Government of the Philippines in reinforcing the IT-BPO industry, view this roadmap document prepared by IBPAP and Frost & Sullivan Consulting.

Contribution to the Philippine Economy

Aside from generating 1.3 million direct employment for Filipinos, the industry also generates 4.08 million indirect jobs, including maintenance, administrative, and clerical personnel.

BPO in the Philippines also promotes economic decentralization and countryside development, creating 280,000 jobs in 23 provinces. This gradually gives purchasing power to workers and their families not living in the metropolises (Manila and Cebu).

In addition, the IT-BPO sector enables various support industries such as the following:

  • Food – $2.7 billion
  • Banking – $1.8 billion
  • Real estate – $1.5 billion
  • Hospitality – $1.3 billion
  • Transportation – $1.1 billion
  • Other industries – $11.38 billion

(Source: IBPAP Roadmap)

Why Hire a Filipino BPO Company

Resilient. Affordable. Highly-skilled. English speakers.

These are just some of the reasons why businesses around the world flock to the Philippines for their outsourcing needs. Being an e-commerce solutions company based in the Philippines and staffed by highly skilled and passionate Filipino professionals, Always Open Commerce embodies Filipino resiliency and creativity in all aspects of doing business.

To know more about why the Philippines is a real game-changer, you can visit this page.

Boon or Bane—The Internet’s Polarizing Secret Revealed

As the world continues to port everything online (thanks to Covid-19), algorithms—or sets of rules and processes put up to gather information—become more intelligent, and to some extent, more disturbingly capable.

According to a 2015 study by the University of Cambridge and Stanford University, web algorithms can evaluate an individual’s psyche quite precisely just by examining the person’s likes on, say, Facebook.

Such powerful algorithms give way for online entities—corporations, advertisers, headhunters—to access what psychologists call the “Big Five” dimensions of personality.

These dimensions, namely openness to experience, conscientiousness, extroversion/introversion, agreeableness, and neuroticism, represent the very nature of an individual. Depending on how an individual uses the Internet, this personality evaluation ability of algorithms can either be a boon or a bane.

Your computer knows you better than your friends do

Your computer, including your mobile devices, can be a better judge of your character than your family or close friends, research has shown.

Now if you feel like this is a prelude to a dystopian Terminator era, your fears are actually not unfounded. All your computer needs is the right input data – namely the thumbs-up and heart clues left by someone’s Facebook “likes”.

The all-encompassing web algorithms “mine” for these likes, searching the vastness of cyberspace just to get hints of your preferences and ultimately predict your personality more accurately than friend and family.

Only your hubbies and wives can rival these semi-sentient computers’ ability to sum up broad psychological traits.

For instance, algorithms are proven useful for both online shoppers and merchants. Every tick is an indication of a personal preference, concludes the joint study by Cambridge and Stanford.

If a user likes to browse wedding dresses, a spring collection from Vera Wang or Dela Renta will most likely appear in the next few days or even hours.

The study’s lead author Ms. Wu Youyou, from Cambridge’s Psychometrics Center, remarked: “In the future, computers could be able to infer our psychological traits and react accordingly, leading to the emergence of emotionally intelligent and socially skilled machines.

“In this context, the human-computer interactions depicted in science fiction films such as Her [and Ex-Machina] seem to be within our reach.” The Joaquin Phoenix starrer revolves around a man who develops a close relationship with Samantha, an ultra-intelligent computer operating system with near-human sentience.

More than meets the eye

But Facebook or browsing activities are by no means the only data that can be used to evaluate your personality.

In a 2018 research by Sabrina Hoppe, a computer scientist from the University of Stuttgart in Germany, eye movements are proven to be indicators of the human psyche.

Researchers from Hoppe’s study were able to predict four of the Big Five dimensions correctly, just by fitting students with eye trackers, who then walked around the campus and went shopping.

This would prove to be a huge deal due to a growing number of smartphones using eye-tracking components—either as a biometric tool or for additional accessibility features.

Apple’s iPhones and Samsung’s Galaxy S and Note series of smartphones, for example, utilize iris scanners for security.

Taking care of your privacy

In the end, if we will be careless, our privacy might be compromised. Cambridge Analytica’s case is a prime example of privacy-breaching algorithmic personality profiling. The company is now defunct, as it jeopardized private data of more than 80 million Facebook users, the worst privacy-related crisis in Internet history.

To be able to utilize the power of the Internet, you need access to a safe and secure platform that will allow you to engage and interact with internet users without compromising their privacy. BigCommerce, known for its world-class security against unwanted data mining, offers the best platform for most merchants who want to provide safe shopping to their customers. Learn more about BigCommerce’s award-winning features here.

Analysis: Is E-Commerce the Way to Go After Covid-19?

Summary

In a world-changing series of events, the coronavirus has changed multiple aspects of society – including consumer behavior in big and small ways. Of course, retailers have to respond accordingly, or they too will be consumed by the lasting effects of the pandemic. This blog will tackle the significant and widespread industry shift towards e-commerce, and why it’s slowly becoming the most practical way to go for both merchants and customers in a post-virus future.

If we have learned one thing from the calamitous year that was 2020, it’s that things can change in one snap of a finger – changes we thought we had decades to prepare for, habits we assumed we’d stick to forever, expectations we have of ourselves and the society we live in. 2020 has proven itself, time and again, to be world-changing – in terms of the way we live, the way we work, and the way we shop and buy as consumers.

But perhaps the most significant effect of Covid-19 on retail and commerce is the realization that, for many of us, geographical location has been rendered irrelevant – so long as you’re connected to the internet. In fact, this flexibility was only fully realized after the pandemic decimated brick-and-mortar foot traffic by more than 60 percent, while 43 percent of shoppers started to rely on online shops for products they would’ve previously bought in physical stores. Consequently, this sudden shift towards e-commerce allows more consumers to move away from metropolises.

The virus also catapulted e-commerce strategies – at an almost overnight pace – from a perpetual yet stagnant “top priority” status on every retailer’s short-to-long term plan to a desperately needed lifeline that could potentially save them from the economic distress caused by the great lockdown. Small-to-midsize retailers in the US collectively poured in a staggering $10 billion in e-commerce infrastructure, investments, acquisitions, and partnerships from May to July 2020.

Essentially, the first year of the 2020 virus pandemic accelerated previously existing, but stalled, efforts to innovate the retail landscape. For most, however, the series of events that have unfolded last year spurred an imminent reset of the way businesses think about consumers’ needs and the future of e-commerce.

Moving forward, what experience do you want to
create for your consumers?

To be successful in e-commerce,
you need to think bigger than e-commerce.

Instead of asking yourself “What e-commerce investments do I need to make?” you should be contemplating about “What consumer experience do you want to offer in the new normal?”

This realization comes as a shock for many retailers who have long had a mentality that’s rooted firmly in brick-and-mortar commerce. Then again, Covid-19 has only emphasized and established the reality that consumer experience is rapidly evolving from one that’s built upon in-store shopping to almost personal, ongoing, enriching, and digital business-to-consumer relationships. It’s like drawing a journey map together with your consumer – one that is highly dependent on the other, reaping mutual benefits for both businesses and customers.

So for retailers to offer compelling consumers experiences, they must understand the future set anew, even forcibly, by the coronavirus pandemic. Undeniably, e-commerce is an unequivocally vital piece of that future.

How can retailers know if they fit into this
imminent future painted by a few all-powerful
players and a global pandemic?

Here are some core questions to help define your investments and business model decisions:

• Do you have a dynamic, intuitive e-commerce platform that understands that every consumer journey
and experience is unique?
• Is your key organizational structure free of obstacles – which isolate e-commerce, core operations,
supply chains, and marketing – that interrupt the experience?
• How can you be price-competitive and still maintain margin? How can you drive sales and purchases in
an online environment? What role do store architecture and merchandising play in this?
• How do you seamlessly orchestrate the consumer experience from digital to physical and back again?
• And ultimately, how would you maintain the experience all the way to consumers’ doorsteps?

Always Open Commerce helps you answer these key questions and provide adaptive solutions to ensure your business will fit perfectly in a post-virus future. We help retailers think bigger than e-commerce – not just out-of-the-box clichés that sometimes fail to reflect real-world growth. Here at AOC, we’ll help you set realistic and reasonable goals that your business can achieve slowly but surely – one by one in a smooth, upward projectile.

Regardless of how consumer behavior continues to change, businesses must be prepared to innovate and develop stronger, deeper relationships with their loyalists – both online and in person.

E-commerce in a Post-Virus World – Part 2

Learn how businesses cope up with the changing e-commerce landscape.


With the global vaccine rollout facing major slumps in small-to-midsize economies, experts predict that the world will not return to normal until the warmer months of 2022, according to an article published by The Atlantic. So with a full year ahead of us, how can e-commerce businesses endure these uncertain times? Here’s what online stores do to stay afloat.

Sell to the post-virus market.

Offer Discounts and Incentives!

  • 73% of top online retailers are running sales regularly.
  • 40% is the median discount rate across all active sales.
  • 90% of customers say free shipping is the most in-demand perk, so more businesses are adding this incentive to their stores.

Market at the Right Place

Since Day 1 of the pandemic, people flock to social networking sites more than ever. Facebook Marketplace has a potential market reach of 2.7 billion monthly users, though that’s a highly inorganic number. Still, marketers predict that Marketplace will soon become the Internet’s leading market listing platform, overtaking current titleholder Craigslist.

  • U.S. online orders in market listing platforms increased 56% YoY
  • Mobile sales expected to drop globally by 5% in 2021-2022
  • Podcast downloads are down 20%

The coronavirus is here to stay.
So must your business.

Just like the major pandemics of the past, Covid-19 may never go away, health experts say. People will only have to develop immunity against the virus. As we wait for the vaccine rollout to trigger herd immunity, the world needs to carry on and continue doing business as usual.

For online businesses to stay profitable and maintain growth, they have to:

  • Adapt to meet changing customer needs
  • Sell thoughtfully to the right market
  • Stay safe

We can help! AOC’s mission is to assist online businesses in achieving stability and maintain growth.

Tell us your story. We’re interested! Visit this page and let’s talk about your business’ success amidst this pandemic.

E-commerce in a Post-Virus World – Part 1

Get a glimpse of how the Covid-19 pandemic impacted and changed the landscape of E-commerce.


Businesses around the world have been grappling with the effects of the coronavirus pandemic for almost a year. Everything from rapidly changing customer behavior to logistics and supply issues proves to be a challenge for entrepreneurs trying to keep their businesses afloat. In this blog, we’re offering a bird’s eye view of the key data around these changes and how E-commerce is adapting to them.

The market has changed.
Permanently.

All figures are based on a year-on-year comparison (2019 and 2020).

After the impact of Covid-19,
What are people buying online?

  1. Gifts and Specialty Products – 18.9% increase YoY
  2. Apparel and Accessories – 14.3% increase YoY
  3. Home and Garden – 8.4% increase YoY
  4. Groceries – 7.2% increase YoY
  5. Toys and Games – 7.0% increase YoY

 

After the impact of Covid-19,
Here’s what people aren’t buying online:

  1. Luggage – 77% decrease YoY
  2. Cameras and Equipment – 64% decrease YoY
  3. Swimwear – 62% decrease YoY
  4. Gym Bags – 57% decrease YoY
  5. Store Fixtures and Displays – 50% decrease YoY

 

Businesses must change, too.

To stay ahead of the pandemic and meet changing market needs, stores are adapting to the new normal.

 

Bricks-to-Clicks

If you’re among the millions who closed down their physical stores, don’t lose hope. Set up a store online and reconnect with your customers.

  • Due to Covid-19, E-commerce sales grew by 25% in 2020.

 

Less Contact, More Sales

Because of the continuous threat of the virus, shoppers order more items through stores with less physical contact.

  • No-contact deliveries are up 62% since April 2020.

 

Popular Products

In a time where people only buy what they need, you can make a pivotal shift to selling what customers are buying.

  • Face mask sellers grew 5 folds in just two weeks.

 

Learn what online retailers are doing in Part 2!