Advisory Firm Survey Sees Steady Recovery in the Philippine Outsourcing Industry
Outsource Accelerator (OA), an advisory firm, conducted a survey suggesting a steady recovery in the operations of outsourcing companies in the Philippines since 2020. The firm conducted a survey from 25 outsourcing companies, representing almost 40,000 employees.
The survey found that the shift to remote work caused a massive “operational change” for the respondents, losing 20-30% of revenue or clients during the strictest phase of community lockdown last year.
Fortunately, after three months, operations and clients have begun to stabilize after reports from respondents stating that they received new inquiries.
According to the survey, 84% of the respondents saw revenue growth from January 2020 to February 2021. 8% responded with flat revenue and while another 8% experienced declines.
Regarding profits, 72% of the respondents reported receiving growth, while 20% reported flat profits and 8% reported contraction.
OA noted, “Some old clients have left, or have been questioning the pricing model or costs, but overall these have been outweighed by new growth and new revenue.”
In terms of the number of employees, 72% of respondents increased their headcount, 16% retained, while 8% posted declines. Overall, the 25 firms created 9,000 jobs in 12 months.
Meanwhile, 72% of respondents shared high expectations in the next 12 months, and 92% have high expectations in the next five years.
In November 2020, the Information Technology and Business Process Association of the Philippines (IBPAP) reduced its employment compound annual growth rate projection from 3-7% to 2.7-5%, which translates to 1.37-1.43 million full-time employees.