In the past years the Philippine economy grew rapidly and even outpaced China’s slowing economy. As a matter of fact, World Bank and other international institutes even consider the Philippines the new Tiger Economy in Asia. The strong manufacturing sector, flourishing remittances of overseas Filipino workers and other economic stimuli used by the Philippine government greatly help to rebuild the country’s feeble economy, which was considered before as “The sick man of Asia”. — But not known to many, the BPO industry has also played a vital role in the success of the country’s sturdy economy.

The Philippines has been slowly overtaking India as the top destination of Business Process Outsourcing (BPO) companies especially call centers. There are many reasons why BPO firms are shifting their service to the Philippines. As an illustration, India has been one of the pioneers of the BPO industry in Asia. However, a lot of factors have been pointed out by BPO firms which greatly hampered the industry. The industry has been battling with the complicity of labor conditions, poor infrastructure, lack of data protection laws and social economic & political instability. As a matter of fact, according to The Economic Times, India has been losing 70 percent of voice and call center businesses to the Philippines.

The Philippines, on the other hand, as the emerging leader in the BPO industry, has been heavily investing in developing the BPO industry through legislation and using different economic stimuli to increase government spending in infrastructure and improving the socioeconomic structure of the country, to better accommodate the industry which is expected to surpass the overseas Filipino workers’ remittance (which the country’s economy partially relies on) by 2017.

The economic and political stability of the country, as well as government support for the IT/BPO sector, has been instrumental to why BPO companies are shifting their eyes to the Philippines. As a matter of fact, a lot of BPO firms are confident with the Philippines for passing good laws needed by the industry. In addition to that, the Philippines meets labor standards, which greatly concerns BPO firms.

However, despite crippling India as the leader in the BPO industry in Asia, the Philippines still faces different challenges, particularly the competitions between ASEAN countries through 2015 ASEAN Integration.