Business process outsourcing (BPO) in the Philippines is indeed transformative for companies of all sizes worldwide. With a population of over 100 million, this Southeast Asian nation stays competitive globally by equipping its call center agents with top-notch training in advanced areas like data analytics, software technology, and machine learning.
According to Market.us Scoop, the demand for BPO services is on the rise across various regions, including Asia Pacific, North America, and Europe. Still, the U.S. remains a major client for the Philippines' leading outsourcing providers. These companies are constantly innovating to improve service efficiency. Outsourcing to the Philippines offers significant advantages, whether it's simplifying contract processing, claims submissions, or back-office tasks.
1. Talented Workforce
Once an American colony, the Philippines adopted English as its official language for business. Filipinos speak English fluently and with minimal accent. The country also boasts several top-ranked universities, producing thousands of highly skilled graduates yearly. With a median age of just 23, the BPO industry's workforce is young, tech-savvy, and well prepared for success, having grown up with IT. Many universities even offer specialized BPO training courses, ensuring students are ready for rewarding careers in this thriving sector.
2. Cost Advantage
Cost competitiveness is a major factor for small and mid-sized companies looking to outsource their business operations. Labor costs are significantly lower in the Philippines than in the U.S. or Europe. Additionally, clients save on capital investments for computers, office spaces, software, and related human resources. This leads to savings of up to 60% compared to maintaining in-house operations. The Philippines’ cost advantage and educated workforce explain why the country has surpassed India's number of voice-based BPO services.
3. 24/7 Business Operation
Another major benefit of BPO outsourcing to the Philippines is the access to a 24/7 workforce. Thanks to the time zone difference, your company can provide excellent customer service around the clock, allowing you to serve your clients while you sleep.
4. Greater Flexibility
The BPO industry thrives in the Philippines, with employees boasting a diversified skill set, from IT and accounting to finance and logistics. Outsourcing providers offer short and long-term contracts, giving businesses the flexibility to scale their operations based on market demands. This quick and cost-effective access to top-tier talent enables companies to free up internal resources and relieve in-house personnel of tasks outside their expertise.
5. Access to Cutting-Edge Technology
The Philippines boasts the latest technology in internet connectivity, telecommunications, data security, and IT infrastructure. Therefore, there's no need to worry about outsourcing tasks involving sensitive data. The 2012 Data Privacy Act brought the country's BPO sector to international security standards. Strict regulations keep sensitive healthcare information private and secure.
Additional Resources
Small Business Trends, 40 Advantages and Disadvantages of Outsourcing from Your Small Business, https://smallbiztrends.com/2017/02/advantages-and-disadvantages-of-outsourcing.html
Market.us Scoop, Business Process Outsourcing A High Demand for Strategic Benefits, https://scoop.market.us/business-process-outsourcing-a-high-demand-for-strategic-benefits/