Outsourcing Sector Empowers Philippines’ Global Competitiveness

On September 19, 2012, in Outsourcing, by Business Development Group
 The Philippines performed strongly in the macroeconomic environment category, second only to its gains in the institutions pillar. The macroeconomic environment pillar represents a country’s economic stability. Here, the Philippines jumped 18 spots and is now ranked 36th.

The Philippines performed strongly in the macroeconomic environment category, second only to its gains in the institutions pillar. The macroeconomic environment pillar represents a country’s economic stability. Here, the Philippines jumped 18 spots and is now ranked 36th.

“The Philippines is one of the most improved economies in the world”, this according to The Global Competitiveness Report 2012-2013 released by the World Economic Forum (WEF). Jumping 10 places up from its previous ranking, the Philippines now ranks 65th in global competitiveness; the first time that the country is in the top half of the global rankings since the report’s inception in 2005.

WEF used the Global Competitiveness Index (GCI), a tool that measures the foundations of a nation’s competitiveness and grades countries based on 12 “pillars” or categories: (1) institution, (2) infrastructure, (3) macroeconomic environment, (4) health & primary education, (5) higher education & training, (6) goods market efficiency, (7) labor market efficiency, (8) financial market development, (9) technological readiness, (10) market size, (11) business sophistication, and (12) innovation. The Philippines came out as one of the countries showing the most progress in 2012, registering improvements in all pillars except for one, the infrastructure pillar.

Related Article: The Global Competitiveness Report 2012 – 2013

The Philippines performed strongly in the macroeconomic environment category, second only to its gains in the institutions pillar. The macroeconomic environment pillar represents a country’s economic stability. Here, the Philippines jumped 18 spots and is now ranked 36th.

According to an article by the Asian Journal, the country’s “stable economy and large market size can be roughly attributed to the increasing number of Filipinos with a higher purchasing power due to the proliferation of the Business Process Outsourcing (BPO) industry and the continuous flow of OFW remittances.”

Related Article: PH up 10 notches in Global Competitiveness

The Philippines’ BPO industry is expected to reach revenues of $13 billion this year. About 45% of that, roughly Php 247 billion, will go into manpower compensation or salaries for Filipinos working in the outsourcing industry. According to a survey by BSP (Banko Sentral ng Pilipinas), the average salary of a BPO worker amounts to Php 383,863 annually or Php 31,989 per month.

Along with improvements in OFW remittances, the Philippine BPO industry has contributed greatly to Filipinos’ purchasing power and the country’s domestic consumption. This in turn buoyed the Philippines’ domestic market size and its economy.

Related Article: PH competitiveness ranking up by 10 notches

 

 

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2 Responses to “Outsourcing Sector Empowers Philippines’ Global Competitiveness”

  1. I can definitely attest that Philippines is very much competitive now when it comes to be a cutting edge country in outsourcing. Filipino staff are very flexible, culturally adaptable and great employees. They can definitely deliver fast paced and quality outputs. By the way, here's a good article why outsourcing can provide good and effective business solutions. Hope it can help outsourcers: http://www.businessoutsourcingsolutions.com/how-outsourcing-can-be-competitive-in-giving-quality-business-solutions/

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