Written by:

Jon Borillo
Published by:
Magellan Solutions

In business, it is always important to know what you are jumping into. That is why those who would like to start a business or a new venture do studies like feasibility studies to be able to know if the leap is worth everything or if it is going to be a bad one. It is also not good to join the bandwagon just because everybody seems to be in it. There are a lot of factors that affect a business and so you have to take all of those into consideration.When it comes to operational jobs, just because people say that it is good to go to the Philippine contact center industry for some business processing outsourcing, you should too. It is highly important for you to understand what it is all about first and what it should bring your business. Do you need it? Is your business going to benefit from it? See, the Philippine BPO industry is always open to clients. However, they have certain services that they provide. Everything would still be up to you and your business strategies. So if you chose to go with Magellan Solutions Outsourcing Inc. for business process management, that is what they are going to do for you. However, you cannot blame them if the venture fails because they will be following your instructions and your business strategies.

If you think that outsourcing simply refers to business process outsourcing (BPO), then you should have to change your thought about that. See, what your business may need would be knowledge process outsourcing (KPO). Yes, there is such a thing and that is why you should know the difference between BPO and KPO.

Business Process Outsourcing (BPO) vs. Knowledge Process Outsourcing (KPO)

Let us take a look at the difference between BPO and KPO. There is a difference between these two and it is highly important that you know them. See, as the owner of a business, you would have to understand what you would be needing and what kind of tasks you would be outsourcing. First off, you may ask, what is outsourcing? And particularly, what is business process outsourcing?

For companies abroad who venture into the Philippines contact center industry, they choose to go there so that non-core tasks like customer service can be taken out of their hands. This means that the company would be able to focus on other core tasks of the operations. This would give them more time to focus on these tasks that are extremely important to the business. Do not get me wrong when I saw that customer service is included in the list of non-core tasks. However, this simply means that it is a lot more time-consuming as compared to other more important ones that are required to run the business smoothly. This kind of scheme is business process outsourcing and the business process outsourcing industry is quite remarkable when you choose to deal with a Philippine contact center as they are highly skilled and trained to do this kind of job.

On the other hand, knowledge process outsourcing (or KPO) is when the tasks that are outsourced include those that are considered to be “high end”. This simply means that these tasks are the ones that need more concentration like analysis of numbers and data as well as research. Some of the tasks that are included in knowledge process outsourcing Philippines has to offer are legal tasks, development of data and products, research, web design and even web content creation.

This is the differentiation between business process outsourcing and knowledge process outsourcing. The Philippines contact center industry is quite known as being the top when it comes to the business process outsourcing industry however it also can very well do any tasks that are included in the knowledge process outsource list. With that, you may want to take a look at the differences and see just what kind of tasks you would like to outsource to the BPO industry in the Phiippines.

Is The Outsourcing Industry In The Philippines Any Good?

The outsourcing industry in the Philippines is quite good. In fact, it is at the top of the ranks when it comes to this service that they are providing the world. Its main competition is India. However, a lot of companies are choosing the Philippines as the place for outsourcing because the country is well known for being hospitable people which is a very important trait when it comes to providing exemplary customer service. Aside from that, there is a lot less noise when it comes to communication because Filipinos are quite known to be excellent speakers of the English language. Although English is not their national language, it is taught and spoken all around the country. These are two of the top reasons why the business process outsourcing industry is booming
in this Southeast Asian country.

When it comes to KPO, the Philippines has yet to create a name for it. The country is more into BPO but quite a huge number of companies there already offer KPO. The only difference is that most people know that outsourced jobs are known as BPO and not necessarily a part of KPO. To be able to compete well, the country has yet to define that they are not only good when it comes to BPO but also very skilled and quite knowledgeable when it comes to KPO. If they succeed in doing this, the outsourcing industry in this country will continue to grow. For the past five years, the country has been experiencing an average growth of 46% each year. Now, that is growth indeed.

The Benefits That Outsourcing Brings To Your Company

So you may have decided that outsourcing is the way to go. What exactly are the benefits that you can get when you choose to do this? Outsourcing is not just a hype of some sort. Companies who have already taken the leap have their own reasons for doing such and they are seemingly reaping in the benefits because at present, the number of companies who have decided that outsourcing is the way to go are going higher and higher each year, especially if you are going to take a look at the statistics in the call center industry in the Philippines. You would be wondering why this is so and it is important to take a look at the advantages that you would be getting and your company or business would be enjoying once you decide to outsource those tasks to further improve operations. Let us take a look at those benefits:

Labor costs are a lot less – When you hire people in your country to do customer service work, you would have to spend for infrastructure, equipment, electricity, internet, and salary. However, if you decide to outsource jobs, you would be able to find good deals where the costs are a lot less as compared to having your very own team right under your roof. There is no need to worry though because though the costs may be a lot less, these people are skilled and trained professionals that you can be sure that the work would be done well.
You get more – Did you ever think of how much revenue you may be raking in because you decided to outsource non-core tasks? A lot of companies believe that outsourcing may be just a waste of money. However, what these people do not realize is that the money you spend is a good and worthwhile investment especially if you outsource your customer service tasks. Agents are trained to speak and communicate well that they can assist your customers and make them be loyal and repeat customers. That is going to be good for your business.
Expansion does not mean spending a lot – If you decide to expand, there is no need to spend too much. See, if you have your customer service team in your building and you decide to expand, this means that you have to build new facilities or add new facilities to be able to accommodate the expansion. However, if you outsource these non-core tasks, building new facilities to accommodate all new employees is not going to be a problem as the company handling the tasks for you would be the one to take care of the additional seats and the additional employees.
Focus on core tasks – With the non-core tasks out of the way, you can now focus on the more important stuff that are needed in running your business so that it would succeed in the way that you want it to succeed. You would have more time thinking of new strategies and putting these strategies to work. You would not have more time thinking of new investments or going to meetings to create new ventures. This is because you would have a lot of time on your hands to do these core functions because outsourcing has taken the non-core ones and they are the ones doing all those tasks for you.

If you have any questions about BPO and KPO concerns, visit Magellan Solutions today. Magellan has been keeping clients happy and supported through high-quality BPO and KPO support for over 9 years.