- By quade
- 28 August 2023
Where Do New Startups Fit in the Local BPO Scene?
We’re aware that the Philippines is famous for its talented workforce. Specifically, companies that handle tasks for other businesses (like customer support) in the Philippines bring in nearly $30 billion for the country. Also, the Philippines has a significant share, around 10 to 15 percent, of the worldwide market for these types of companies.
Filipinos are known for being good at customer service. But now, we’re noticing that there are more types of jobs becoming available, and new, small companies are at the forefront of this change.
A new trend is here
Companies in various countries like the US, Europe, Singapore, and Malaysia are increasingly hiring talented people from the Philippines.
If you check the employee lists of different startups in Singapore on LinkedIn, you might be surprised to find many Filipino names. What’s interesting is that most of these Filipino talents work from the Philippines, even though the startups they work for don’t have an office there.
Especially because of the increased expenses and the impact of COVID-19, it’s becoming common for companies, including small startups, to hire remote workers.
Filipinos are a valuable part of the global workforce. They have the skills and qualities that match what companies are searching for.
What do we observe?
Startup companies usually bring in individuals to sell things and assist customers, similar to how call centers operate. However, nowadays, startups are also looking for people to do different types of work, such as promoting products, creating things, leading teams, and ensuring everything goes well. They’re not just hiring beginners, but also people who have more knowledge. In the year 2023, LinkedIn mentioned that Filipinos were highly sought after for jobs related to marketing and engineering.
In the Philippines, there are companies that are really good at finding people to work for other companies. For instance, Penbrothers helps all sorts of businesses find workers. Also, there are local startups like Bossjob, and they make it easy for companies from other countries to find workers using their websites.
There are also special schools that teach you how to do certain jobs quickly. One of these is Avion School. They teach you how to be a software engineer in a short time. These schools teach you the practical skills you need to get a job in programming and making software.
How does this work?
If you’re a new business, let’s say, in Singapore, and you want to hire people from other countries, you don’t always have to create your own local company there.
Doing that can take a long time and cost a lot of money. But there’s a faster and easier way. You can use services like Deel, Multiplier, and Skuad. These companies can help you with all the paperwork and legal stuff.
You can also get help from coding schools and job-finding companies. They can find and check the people you want to hire. Some of them can even help you with things like paying your employees and following the rules.
And if you want to find people who want to work for you, you can use websites like Bossjob, Jobstreet, Kalibrr, and LinkedIn. You can talk to them online and see if they’re a good fit for your company.
Why is this occurring?
You can connect this growth to the rise in people working from far away and the expansion of tech companies worldwide. Because of this, businesses have more reasons to offer jobs to people from different places, not just those who live nearby.
According to Jobstreet, the IT/tech industry is one of the job markets that’s growing the fastest because more companies are using technology to run their businesses. A report from Deloitte in 2021 also says that IT services were one of the top jobs that companies hired other companies to do, with finance, payroll, and customer service jobs also being outsourced.
The future of outsourcing
The BPO industry is going to get bigger in the next five years. They want to reach $59 billion in business and have 2.5 million people working in it.
If we look at the bigger picture, the Philippines has other countries nearby in Southeast Asia that are also good for outsourcing work. For example, Vietnam is great for hiring software engineers, and Singapore has a lot of really skilled workers.
Even though there is a lot of competition from these nearby countries, the Philippines government is helping the BPO industry. They make rules that give benefits to BPO companies, like lower taxes, because it brings in jobs and money. The Department of Trade and Industry (DTI) is one part of the government that is helping BPO companies grow.
But there’s still work to do to make sure the BPO industry in the Philippines is strong and fair. There’s a new law in the works to make sure BPO workers are treated well, have job security, and get paid fairly.
Also, how startups hire people can make a difference in the BPO industry in a few years.
(Amanda Cua is the founder and CEO of Back Scoop, a media startup with a free newsletter that features news on businesses and startups in Southeast Asia.)
