As the BPO market evolves, an Everest research study forecasts that 90% of future BPO opportunity to derive from non-voice BPO functions.

Given this significant market potential, non-voice BPO represents an attractive opportunity segment, and will be key to the future growth of the Philippines’ BPO market.

While there is a well-understood value proposition for voice-based BPO services from the Philippines, there is currently limited awareness of the capability and potential for non-voice BPO. However, even today, BPO delivery from the Philippines is no longer limited to voice-based services, and a number of companies are already leveraging the Philippines for delivery of a wide array of non-voice BPO functions. This research examines the Philippines’ BPO market with a specific focus on current capabilities and future potential for non-voice BPO services.

The Chief People Officer of a BPO firm, WNS Global Services, Karthik Sarma says, “At WNS about 20% of our work is voice-based. We continue to see strong demand for voice-based services. The BPO market remains under-penetrated. The global BPO market is estimated at about $450 billion and India-centric BPO last year comprised only $8.4billion, which is roughly 2% of the global market. This clearly reflects the potential of the industry.”

A senior official in First Source BPO said, “There will be certain amount of transition from voice based services to non voice functions. Several companies have started functioning in non-voice processes. But the skill sets will be totally different. A more analytical brain would be required in the non-voice supports.”

Indian BPO firms have been losing senior employees over the past year to BPO companies in the Philippines. The local firms offer superior pay packets to Indian executives to fill senior and middle management positions in the Philippines.

The report provides an overview of Philippines offshore market with a specific focus on the non-voice BPO market. It examines the growth of the Philippines’ non-voice BPO market and includes an assessment of current activity and maturity for a wide array of non-voice BPO functions. BPO has a significant growth potential with an addressable market opportunity of US$220-280 billion.

Success in voice-based BPO services has made the Philippines the second largest low-cost BPO destination after India. A number of companies are already using the Philippines for a wide array of non-voice functions though the scale of operations is still small. Most current activity is concentrated on transactional services (e.g., Finance & Accounting, medical transcription).

Given the nascent stage of the market and the prevailing talent issues, the Philippines is unlikely to replace India as the nerve-centre for non-voice BPO, but has the potential to emerge as an important satellite delivery location. X