By the end of 2018, over 850 BPO companies operating in the Philippines. The Philippines outsourcing industry employs millions of Filipinos. And that number is expected to increase by another 700,000 by 2022. New opportunities for skilled and semi-skilled laborers continue to emerge.
Over the past decade, business outsourcing to the Philippines has seen a 30% increase. The Philippines takes about 20% of the global BPO market. The industry generates about $50 billion in revenue every year.
The BPO industry has become a crucial economic pillar for this South-east Asian country. But what makes it so attractive for BPO? Why are businesses keen to invest in outsourcing to the Philippines?
In this article, we look at some of the benefits of outsourcing to the Philippines and some of the most popular outsourced services.
Benefits of BPO in The Philippines
Below is a comprehensive look at five key benefits of business process outsourcing in the Philippines.
One of the primary reasons for outsourcing is to save labor cost and time. The cost of skilled labor in the Philippines is significantly lower than in the U.S. and Europe. In some professions, this cost difference can be as much as 60% to 80%.
For perspective, a virtual assistant in the U.S. costs between $2,500 – $3,000 a month. A Filipino virtual assistant, on the other hand, will only cost between $400 – $600 a month.
Business can save up to 80% on labor cost by outsourcing labor and services to the Philippines.
2. Skilled and Talented Workforce
Despite the low cost of labor, the Philippines is home to a highly-skilled, qualified, and talented workforce. A lot of this has to do with the country’s system of education, which is very similar to that in the United States.
More than 450,000 students graduate from colleges and universities every year in the Philippines. These graduates happen to be young adults looking to make use of their acquired skills.
The Philippines government also sponsors numerous practical courses. These courses help grow the citizens’ skill sets and prepare them for employment.
Headhunting for skilled labor in the Philippines is much easier than in other BPO hotspots.
On top of that, the workforce adheres to a strict code of conduct and work virtues. The Filipinos are known to be respectful and loyal. Their dedication to work and productivity is unquestionable.
3. Excellent Communication Skills
English is the official national language in the Philippines. This is true despite the country having an ethnically diverse population.
In addition, the Philippines has a healthy cultural influence from South-east Asia and western countries. The result is a neutral language with a nearly natural accent.
Among the non-English speaking counties in the world, Filipinos have an excellent command of the English language. They excel in both verbal and written communication. This is a significant advantage when it comes to business process outsourcing.
First, businesses can communicate flawlessly with workers. Secondly, fluency in English opens up several outsourcing opportunities. These include communication-based services, such as call services and virtual assistants.
4. Data Security
BPO usually involves sharing access to delicate and confidential information. Data privacy and security is a major business concern. Businesses must be guaranteed of data safety in the hands of outsourcing companies.
This is where the Philippines scores another plus. The government has put in place strict regulations governing access and use of sensitive data. This is an effort to establish trust in the BPO industry. In 2012, the government passed laws to ensure that valuable data is handled according to international standards.
Data privacy and security standards give the Philippines a unique competitive edge in BPO.
5. Reduced Legal and Liability Management
The Philippines government fully supports the BPO industry. It acknowledges the significance of BPO to the economy and seeks to expand its growth.
To that effect, the government has put down policies and infrastructure that favor the BPO business. This is a bid to encourages more foreign investors to engage with the industry. The government does this by providing tax incentives, lenient regulations, and lifting crippling restrictions for outsourcing companies.
This means that the outsourcing processes in the Philippines are smooth. It also doesn’t require going through stringent legal requirements or liability burdens.
Popular Philippines Outsourcing Services
Voice call centers are the most popular BPO service offered in the Philippines. This is followed by computer and IT-related services, medical transcription, and animated film production.
The call center outsourcing services are possible due to the Filipinos’ fluency in English and exposure to western culture. Many native callers never realize that their call is outsourced to agents in the Philippines.
For a long time, the Philippines has been known as the call center capital for telemarketers and customer support. In recent years, many call centers have expanded their scope to handle all forms of communication services, including emails, social media, live chats, and online virtual assistants.
This is due to the growing demand for multiple communication channels within businesses. Call centers have had no choice but to diversify and increase functionality to remain competitive. Virtual assistants perform a wide range of tasks, including clerical duties, personal assistance, and data entry.
IT-related services comprise mostly of programming, web development, hosted services, and digital marketing. This is owing to the availability of professional skills in computer science and engineering.
Outsourcing is a great way to acquire skilled and professional labor at low cost. Philippines outsourcing services present an opportunity to do just that. As a BPO destination, the Philippines offer a unique combination of favorable factors from low-cost labor to full government support.
The Philippines outsourcing sector has made a lasting impression on the global BPO industry. It has set particular standards in the outsourcing market by improving service delivery, quality, and accessibility. In its own respect, the Philippines is a reputable and formidable global BPO destination.
Consider Outsourcing for Your Business
Outsourcing can make a significant impact on your business operations. It is impossible to ignore the cost savings and other conveniences of outsourcing business processes. More and more businesses are looking at outsourcing to cut down on operations costs and maximize yield.
Continue reading our blog to learn more about BPO.