The Philippines is a popular destination for offshore BPO. However, experts have suggested that recent wage hikes in the BPO sector could make the country a less cost-effective outsourcing option.

Roman Romulo, a district representative from the city of Pasig, said ‘we do not see the P15-increase in the daily minimum wage [for private sector workers in Metro Manila] influencing the decision of BPO players to either step up, or slow down hiring.

‘Fair wage increases will not diminish the country’s global competitiveness. If we look at India and our other competitors in the BPO space, their wages are rising faster than ours.’

In a recent study conducted by real estate consultant Cushman & Wakefield, the Philippines was named as the second most appealing destination for offshore BPO, closely following Vietnam. In terms of actual market size, India remains the world’s largest BPO destination.

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