Do you know? The first Business Process Outsourcing (BPO) center in the Philippines was built in 1992. With this, people noticed a promising opportunity since many foreign companies were ready to build their customer support centers in the country.
This made the Philippine Government establish a special economic zone to support BPO outsourcing. Since then, hundreds of outsourcing companies have been built in the Philippines for business operations. Today, the BPO industry has employed around 1.4 million people.
BPO remains a strong trend among organizations regardless of their size and type. It is said that around 70% of CEOs in the global enterprise believe that BPO plays a vital role in supporting business models.
BPO outsourcing in the Philippines accounts for more than 13% of the global BPO market and this percentage is increasing every year. The Philippines is also constantly ranking among the top five countries for outsourcing BPO services in the world.
What makes the Philippines the best BPO destination?
It is said that in 2012, the country’s top outsourcing companies generated gross revenue of more than P10 billion. Now, we can say that the Philippines have become one of the top outsourcing locations in the world which is followed by India on this list. The growth of the country’s BPO industry is around 15-18%.
Outsourcing services in the Philippines are not only limited to large corporations but even small companies can also get benefited from the outsourcing industry. If used perfectly, even a small company can grow drastically within a year or two.
Why outsource BPO Philippines?
The success of the outsourcing industry in the Philippines can be attributed to several benefits that the country offers to investors. Let’s learn more about the factors that make outsourcing the BPO industry to the Philippines the best choice for the business.
Cost-effective – By working with outsourcing companies in the Philippines, a business can save up to 60% of the operational cost. This is because of the low cost of living in the Philippines. When we compare the salary of the fresh candidates in the Philippines it’s just a small fraction of their counterparts in the West. We can say that the daily salary of the individuals here is equal to the hourly salary of an employee in other developed countries.
English Proficiency – Around 70% of Filipinos are fluent in English. Most of the local children learn English even before they start going to school. Their English proficiency is further reinforced once they start their formal education in school. English is used as the medium of instruction in schools in the Philippines and is also the primary language for local commerce.
Cultural compatibility – the Philippines is a country which is formerly colonized by Americans, Spanish and Japanese. The Philippines now continue to show the remnants of its past. Western culture is still rooted in people’s everyday lives. Also, the people in the Philippines are highly adaptable to foreign cultures. Furthermore, hospitability is an integral part of the Philippines’ culture and tradition. These factors make Filipinos work easily with people from different countries and socialize with them.
Highly skilled individuals – The Philippines have a large population of young skilled people which is fast growing than the country’s retired workforce and children. The median age of this young population is around 23 years old. The statistics should that there is a highly educated workforce boasting a literacy rate of around 97.5% which is an abundant supply of manpower.
Every year, the local colleges and universities provide around 500,000 skilled and qualified workforce to society. As per the experts, the Philippines will continue to get benefited from these young and talented individuals in the coming years.
Flexibility – Building a perfect offshore team in the Philippines will allow the business to scale quickly and efficiently without any infrastructure requirement and capital investment. If you wish you can expand your team quickly and also cost-effectively. Also, if you want you can shrink your team due to the seasonal work nature or when your business has taken a turn to the worse side, you can do it without any worries. Generally, the company will help you make all the arrangements for outsourcing supplies for flexible terms and lower commitments.
Reduced management issues and legal liabilities – When you run a business, you will know that employing staff in another country will come along with a lot of compliance, rules and regulations, tax, administration and many more. But outsourcing the BPO services in the Philippines is easier since it will simplify the legal liabilities and management. This makes the business owners get attracted to outsource the BPO services here.
Also, the Philippines has very well-established labor law. It can be complex when you directly work with it but when you outsource the services you can easily manage all the business operations and the team.
High level of data security – The Philippines is the choice of many businesses around the world for more than 25 years. You can find an incredibly sophisticated BPO industry which has a strong regulatory environment. Here people process highly sensitive client data for over 20 years till now. From health insurance to personal financial data – the team here has processed data from the world’s biggest private and public companies. The data shared with the team will be highly secured since the country has adopted one of the most strict data privacy acts.
24/7 operation – The workforce available in the Philippines is highly geared towards 24/7 coverage. Thus, regardless of your country’s time zone or the time zone of your customers or clients, the team in the Philippines will offer business solutions at any time and anywhere. The workforce will also work the night shift which is very normalized in the Philippines. Rotating shifts and weekend cover is also standardized and accepted conditions in the outsourcing industry. This makes it easier to get 24/7 support coverage for customer service and online sales functions.
Conclusion:
By considering all the above-said factors, the Philippines BPO industry is at rapid growth and is an ideal choice for your business needs. It will help your business grow quickly by improving customer and client satisfaction levels.
