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Home | Blog | 5 Changes In The Call Center Outsourcing Philippines Post Pandemic

5 Changes In The Call Center Outsourcing Philippines Post Pandemic

By Yelyna

Updated on May 31, 2024

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2021 BPO Status in the Philippines

The working conditions increased the fear of COVID-19 among 247 BPO Services Inc.

The pandemic damaged even the BPO sector. However, the BPO industry in the Philippines accommodated many adjustments. This is to allow employees to continue doing their jobs.

Moreover, Filipinos are resilient. Large corporations and the ever-increasing number of SMEs appreciate this trait.

The pandemic disrupts the BPO industry. But there is no other place that matches the service capabilities of a business process outsourcing company in the Philippines.

Our agents set the perfect example of business process outsourcing in the Philippines.

A large number of BPO employees in the Philippines are not only nice and friendly. They are also very open, marketing, and willing to offer something of value to customers and clients alike. This is quite attractive if you are marketing in a highly competitive niche.

Magellan Solutions has 18 years of experience.

Being that this is a local economy, it makes it easier for businesses to get quick responses and constructive criticism.

The ease of doing transactions.

The ease of marketing and transactions sets Magellan Solutions apart from the rest.

The ambitions.

If you can picture the potential of an industry that you’re trying to enter into, this is exactly it. A great way we can assure you nail that this image is our low rates on outsourcing. As a result, your businesses could start seeking customers globally.

In line with the digital trends.

The majority of the Filipino population consists of those aged 20 to their 40s. These are the people who grew up with screens up their noses for work or leisure time. Thus, it results in employees who are already familiar with the basics of technology and skills. These are what local call center companies in the Philippines look for in candidates.

The BPO Industry Employees Network highlighted Covid-19 outbreaks. One example is in local call center companies in the Philippines. They have been advocating for the safety of workers since the start of the pandemic. The group called for the industry to:

  • allow staff members to work from home
  • provide staff with near-site accommodations
  • door-to-door shuttles
  • free coronavirus testing and medical care

Call center services Philippines and other outsourced business operations are critical to the economy. So when the Philippines went into lockdown in March 2020, only a few professions were exempted from home quarantine. This included police, health care workers, and several BPO employees in the Philippines.

The industry employs around 1.3m workers and contributes approximately 9% to GDP when its indirect and induced multiplier impacts are factored in.

As a result of its importance, BPO was permitted certain exemptions from the lockdown to minimize the impact on the wider economy.

Just A Handful Of Changes For Business Process Outsourcing Companies

BPOs continue their business by having up to 70 percent of their employees work from home during strict quarantine periods.

During the first and second quarters of this year, BPOs thrived with more companies expanding their operations and new ones investing in the country.

The anticipated growth for the BPO sector for this year will be anywhere between 5 percent and maybe 6.5 percent. A recent survey also showed that up to 87 percent of the BPO country heads predicted 5 percent to 15 percent growth this year.

After the start of the pandemic, industry players quickly implemented remote work and reduced the length of shifts. This created capacity challenges in the early stages. BPO firms also had to contend with declining demand for their services due to project deferments and cancellations.

After the pandemic, there are these 5 expected changes for Magellan Solutions as an example of business process outsourcing in the Philippines:

Humanization

Within the context of the Philippines, BPO & IT companies alike have considerably done more and are doing so in the wake of the pandemic. Workplace healthcare is the top priority.

  • Making work more flexible to comply with healthcare protocols
  • Increasing Corporate Social Responsibility and Community Outreach
  • More focus on mental health
  • Championing workforce inclusion and diversity
  • HMOs and insurance have been offered over the years.

In the coming decade, workplace culture and social responsibility will be huge factors. It helps in retaining and capturing talent from the workforce. Take into account the said factors. Offered salary alone is no longer a top indicator for career destinations.

Upskilling & Evolution

There is a slowdown in US consumer activity. Thus it is likely to hurt the Philippines’ BPO sector in the short term. But the country can look towards a lot of things. One is building competitive advantages beyond English-language proficiency. Another is customer service skills. This would be positioning itself for the next wave of expansion in the global BPO industry.

Basic call center services are responsible for 50-60% of customer contact operations. But demand for such services was already under pressure. This is because of artificial intelligence-powered chatbots even before the pandemic.

In recognition of this threat, in 2016 the IT and Business Process Association of the Philippines (IBPAP) unveiled Roadmap 2022. It aims to prepare its members for a transition towards automated services. Furthermore, it also leads to more technical and creative jobs. If managed properly, IBPAP forecasts that close to 75% of the workforce will be in mid to high-skilled positions by 2022. This is in comparison to just 53% in 2016.

Virtualization

There is an increase in digitalization and virtualization. There will be offers of outsourcing and shared services opportunities for BPO and IT. This is possible by expanding service lines for development. Maintenance is also facing more challenges. This is in terms of their scalability and critical response times.

Small niche markets between API and network services have a relative opportunity to expand. This is because running services, interim programs, and microservices are moving out and into a wider market. These encompass not only career opportunities. But also service contracts for companies that offer development services.

Emerging Segments

An encouraging sign is the growth of segments. Some of these are health care, gaming, and animation services. They all fall under the IBPAP roadmap.

The Philippines established itself as a leading offshore location. One of the services is the practice of health care providers. Some are organizations outsourcing all business processes to a remote operator.

In a pre-Covid-19 November 2019 assessment IBPAP forecast that revenue growth in.

  • The health segment would be between 7.3% and 10.8% through 2022.
  • Gaming and animation would see revenue growth of between 7.3 to 12.3%.
  • Contact centers expect revenue growth of between 3.3% and 7.4% over the same period.

The pandemic increased worldwide demand. This holds for healthcare services and home entertainment options. It is anticipated that growth in these segments will be even higher. This is in comparison to that of the pre-pandemic assessments predicted.

Decentralization

The current government administration focuses on the decentralization of:

  • Business hubs
  • Commercial hubs
  • Technology hubs
  • Economic zones

This is to diversify and spread the growth of the Philippines. It includes their status of being business-ready. This means a good destination for investments.

When we say IT Parks, Economic Zones, and Technology Hubs, we are no longer listing Metro Manila as the sole destination. Regional cities across the provinces are rising as destinations too. Fields such as commercial, business, and investments in IT, BPO, and Shared Services. This is a good sign to offer employment. It can also improve the region’s commercial capabilities, tax income generation, and upskill the local workforce.

Is the Philippines a good example of a BPO company to outsource amidst the pandemic?

The COVID-19 outbreak first hit the Philippines in March. Many were uncertain about what would become of the current normal. No one knew how it would impact many industries. It was understandable back then to doubt that the economy would recover. Regardless, the Philippine BPO industry is certain to recover in the coming months.

Several global business owners took notice of the quick response. British investors and other Western businesses continue to see opportunities in the BPO industry. Despite the disruptions caused by COVID-19, businesses were still able to support their clients. All the while remaining in lockdown onshore offices.

Furthermore, business leaders were able to assess the current situation. They strived to ensure the financial aspects of their business were sustainable enough to recover losses. At the same time, they also prioritized the health and safety of their teams. Many saw the importance of regaining control and reimagining previous strategies and processes. They see these will overcome similar disruptions in the future.

Businesses must have a workforce strategy that guarantees continuity. Once stable, business leaders will be able to ensure continued success in the new normal.

Looking for more reasons why there are still several stable companies of call centers in the Philippines to outsource to? Contact us today by filling up our form below. We can give you more reasons.

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      5 Changes In The Call Center Outsourcing Philippines Post Pandemic

      Yelyna

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