Philippine BPO: A Strategic Business Planning

Before, outsourcing was the preserve of the biggest companies. International companies set up dedicated services that enabled large businesses to have information technology, payroll, and other back-office functions managed by teams of specialists. However, the Internet age has given smaller companies the opportunity to gain from the concept.

Increasing numbers of growing businesses are avoiding employing full-time human resources managers by obtaining online advice and services.  Business process outsourcing—the offshoring of many jobs from developed to developing countries—has become the main issue for global companies.

Clearly, from the vantage point of the developing countries, outsourcing was hailed as their way out of poverty, as a slew of outsourcing companies set up in their homelands signified the start of abundant opportunities, rising incomes, and secure futures. Outsourcing is increasingly viewed as a tool for strategic planning and business outcomes. The beauty of outsourcing is you can outsource an entire function or only a part of it.

Organizations use this as a strategic initiative to improve customer service quality and reduce costs. Increasing global proficiency in English, rising quality of education in developed countries, and significant improvements in telecommunications and information technology—all have contributed to making the phenomenon known as outsourcing possible.

The trend toward deriving broader business benefits from outsourcing stems from increased maturity and experience with the process and the spread of outsourcing beyond IT departments. While IT services remain the leading outsourced function, more companies are turning to outside sources for supply-chain operations, learning and training, human resources, accounting and financial services, and customer relationship management.