In 1992, a BPO contact center was established in the Philippines. The Philippine government has launched a new generation of outsourced enterprises within an enabling zone for special economic zones. Almost 200 outsourcing firms have set up operations throughout the country and now employ approximately 1.4 million people.
Since then, the outsourcing industry has grown
drastically. Many businesses have started outsourcing their services to the
country because Philippine labor is highly-skilled, English-speaking, and
affordable.
There are several reasons why outsourcing to the
Philippines makes sense for businesses worldwide.
Let us define first some terminologies in this article.
What is outsourcing? Outsourcing refers to the
process of task delegation where companies hire dedicated developers from third-party
contractors.
Nine reasons why outsourcing in the Philippines is growing
- Highly-skilled,
English-speaking labor force. The Philippines has one of the largest and
most talented workforces globally, with many workers possessing advanced
skills in customer service, IT support, and other specialized areas.
Moreover, the Philippines' business process outsourcing (BPO) industry is
bolstered by the call center industry.
- Low labor costs. The cost
of living and doing business in the Philippines has significant cost
savings than most developed countries. This makes it possible for
companies to save on operational costs by outsourcing their services to
the Philippines. You might be worried about the quality. But, the
companies in the Philippines have a culture of high quality and
efficiency, making it possible for them to deliver excellent service
despite their low cost.
- Access to a global
customer base. As the leading provider in the BPO sector, Filipino workers
have made it possible for businesses to reach their business goals,
improving their brand reputation and increasing revenue. The large pool of
highly-skilled workers and low labor costs make it easy for companies to
target customers worldwide.
- Support for IT service
needs. The Philippines has become a key destination for many IT and
software companies looking to outsource. In recent years, the country’s
BPO sector has grown with government support initiatives, such as creating
a BPO curriculum, health insurance for workers in the BPO industry, and
creating laws to reduce legal liabilities.
- Proximity to other Asian
countries. The Philippines is strategically located near other Asian
countries, which makes it easy for companies to expand their offshore
operations in the region. Additionally, the country offers a time-zone
advantage for foreign companies looking to target customers in the US and
Europe.
- Favorable government
policies. The Philippine government has supported the Business Process
Outsourcing (BPO) industry. For example, the government has created
special economic zones (SEZs) that offer tax holidays (even tax returns)
and other incentives for workers in the Philippines BPO.
- Highly-developed
infrastructure. The Philippines has well-developed telecommunications and
transportation infrastructure, making it easy for an offshore team to set
up operations. Additionally, the country has many educated workers, which
benefits business growth and business continuity.
- Software developers in the
Philippines are highly sought-after by businesses worldwide. Most clients
prefer Philippine-based developers because of their flexibility and
ability to work under pressure.
- As mentioned,
Philippine-based developers are excellent English speakers. The country's
official language is Filipino, but English is considered a second
language. The majority of Filipinos can casually speak English; therefore,
it is easy for Filipino developers to communicate with clients from
various countries.
What services can the
outsourcing industry in the Philippines give you?
Here are some of the IT-related
projects you can get when you start outsourcing to the Philippines.
- Software development
projects. These projects involve creating and maintaining software
applications. The scope of work can include anything from developing a
custom software application to modifying an existing one.
- Web development projects.
These projects involve creating and maintaining websites from an offshore
workforce or remote staff. The scope of work can include anything from
designing and coding a website to managing its content.
- E-commerce development
projects. These projects involve setting up and managing clients'
e-commerce websites. The scope of work can include anything from designing
and coding a website to managing its content and product catalog.
- Mobile app development
projects. These projects involve creating and maintaining mobile
applications. The scope of work can include anything from developing a
custom mobile app to modifying an existing one.
- QA and testing projects.
These projects involve ensuring the quality of software applications and
websites. The scope of work can include anything from manual testing to
automated testing.
- Content creation. This can
involve writing blog posts and articles to creating social media content.
- Digital marketing. This
can involve anything from SEO and web marketing to social media marketing.
Outsourcing to the Philippines will give you time to
explore the variety of work you can get from your outsourcing destination.
How to leverage business
process outsourcing for your benefit?
- Create specific
instructions for your outsourced team or offshore staff. This can include
outlining each project's objectives, requirements, and processes. Ensuring
clear and concise instructions will help you get the most out of an
offshore team.
- Invest in training
programs for your outsourcing staff. Training your employees is an
essential part of building a solid remote workforce. It can include
anything from onboarding programs to technical training.
- Develop a system for
monitoring and tracking progress for your BPO partner. This will help you
stay on top of each project and ensure that deadlines are met. It can
include setting up alerts to creating daily or weekly reports.
As a business owner, you have the right to take full
control of the whole project to supply your business needs. You can prevent
management issues when the task allocation is perfectly done.
Outsourcing companies often enjoy working with clients
who can handle feedback graciously. If you select a team in the Philippines
(offshore outsourcing) to perform non-core business functions of the company,
you may expect positive returns.
The BPO Industry and feedback
Feedbacks are essential to BPO
companies. It helps them assess the quality of their services and act on areas
that need improvement.
Philippines-based companies take feedback seriously and
use it to improve their service quality. They understand that feedback is
essential in maintaining a good relationship with their clients.
You will be spared from unnecessary HR costs when you
outsource, which you may pay for your local talent or in-house staff.
The outsourcing destination has set up business
solutions that will benefit all parties involved most of the time. You may also
set up a management team if you have a massive project that requires
supervision.
Indeed, offshore outsourcing is a tedious task, but the
benefits are incredible.
Support of the government of
the Philippines
Laws have been passed to
capacitate their workers in the BPO industry to create BPO specific curriculum
for institutions. Small businesses, either abroad or local, have reduced legal
liabilities to assist them in becoming excellent in the field.
Moreover, the government funds technology advancement
in the Philippines to help businesses, including BPOs, state-of-the-art access
equipment.
The Philippines also provides incentives to BPO
companies to put up their business in the country. These can be in the form of
tax holidays, reduced rental rates, and easier permit processing.
The wrap-up
Philippines-based companies can
provide efficient and quality services to augment your company's needs. With
the government's support, you can leverage offshoring to achieve more growth in
no time.