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OUTSOURCING TO THE PHILIPPINES:
A CLOSER AND DETAILED LOOK

With its low labor market rate, skilled workforce, and agreeable laws, the Philippines offers promising opportunities for strategic partnerships with developed countries. These same factors are the common selling points of many BPO companies, which you may grow tired of reading. But in this article, we will not focus on the general information about outsourcing to the Philippines. Instead, we’ll give you a detailed explanation about the following:

I. The Philippine Outsourcing Industry Overview
II. The Filipino Labor Market
IV. Support From Government Agencies
V. Finding And Selecting The Right Service Provider
VI. Certifications You Should Look For
VII. Pros And Cons Of Different Outsourcing Business Models
VIII. Importance Of Company Culture To BPO Companies
IX. Common Concerns When Outsourcing To Philippines
X. Related Laws And Labor Practices
XI. The Art Of Strategic Shift Scheduling
XI. Is The Philippines Outsourcing Industry Ready For Automation?
XII. Inside The Four Corners Of A BPO: Recruitment, Training, QA, Support System

OUTSOURCING TO THE PHILIPPINES:

A CLOSER AND DETAILED LOOK

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Overview of the
Philippines Outsourcing Industry

Outsourcing in the Philippines started with a call center in 1992. Back then, it only provides basic services such as email response and service management. This is considered as the First Wave of outsourcing.

With the support of the government and a good economic climate, it has grown into a billion-dollar industry. During this Second Wave, top global firms started to operate in the country. The Philippines also surpassed India as the top outsourcing destination.

Today, hundreds of BPO companies deliver call center services, back-office support, data transcription, engineering development, animation, and digital content services to various businesses around the globe. Now on its Third Wave, many companies saw the need to shift to offering higher-value services to keep up with the age of automation. By doing so, local and international companies will keep on outsourcing to the Philippines.

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Benefits of Outsourcing to the Philippines

In 2018, the eCommerce giant Amazon.com opened its first customer service center in the Philippines. In a statement, Amazon vice president for Worldwide Customer Service Tom Weiland said that they are “excited to be investing in Cebu and working with such talented people, especially since Filipinos are known to bring high levels of experience and passion to their work.” So what exactly makes Filipinos world-class?

Hospitality, politeness of speech, and indirection of interpersonal behavior

In the same journal, Fox explained that Filipinos feel secured with their kin (cultural or national affinity) and family. Meanwhile, relationships between non-kinsmen are delicate and insecure. To connect the social distance with their non-kinsmen, they use hospitality, politeness of speech, and indirection of interpersonal behavior. As a result, many Filipinos can connect and provide effective service to customers and clients worldwide.

Strong sense of community spirit

Known as Bayanihan in their native language, it pertains to the attitude of helping each other “without expecting anything in return.”

Filipinos also have a preference to work in teams.

In most cases, it works for them — not against them — especially when the team formed a strong bond in a healthy working environment. For instance, call center agents usually need to hit a quota of support tickets per day which measures their KPIs. If he/she couldn’t hit it due to acceptable reasons, he/she can ask his/her teammates to finish it. In return, he/she will have a sense of gratitude and will do the same in case the same thing happens to another teammate.

High level of empathy or sensitivity to feelings

Commonly known as empathy, this attitude enables them to sense what another person feels. In return, they can respond to it as appropriately as possible, making them highly flexible and adaptable in social situations. Filipinos understand that inappropriate remarks and thoughtless criticisms can break relationships. Using their empathy, they can work with clients and customers well despite their differences in culture.



Outsourcing to the Philippines Fast Facts

  1. The BPO industry is considered as an economic pillar in the Philippines.
  2. The Philippines ranked 10th among the world’s top outsourcing destinations.
  3. In 2018, six Philippine cities are included in the top 100 global destinations: Manila (2nd), Cebu City (11th), Davao (75th), Sta. Rosa, Laguna (87th), Bacolod (89th) Iloilo (92nd).
  4. 77% of the country’s customer base came from North America while 9% each came from Europe, Australia, and New Zealand. 5% came from Japan.
  5. The Philippine government enacted the Special Economic Zone Act that gives special privileges to foreign investors. It is expected to boost economic growth and generate employment in the country.
  6. The call center industry is one of the fastest-growing industries in the Philippines today.
  7. From 0.075% in 2000, the gross domestic product contribution of the outsourcing industry grew up to approximately 7% in 2016.
  8. The industry’s annual growth projection until 2020 is at 9%.
  9. By 2022, outsourcing in the Philippines is projected to become a $40-billion industry based on a 16-percent annual growth rate.
  10. In 2015, the Philippine healthcare information management outsourcing industry generated $3 billion in revenue.
  11. As of June 2016, there are 851 establishments registered under the business process outsourcing industry.
  12. The call center industry is expected to create 60,000-70,000 jobs per year until 2022.
  13. Outsourcing, in general, helps stabilize the Philippines’ economy.
  14. A 2015 labor force survey found out that 47.1% of the Filipino labor force are millennials.
Start reading

OUTSOURCING TO THE PHILIPPINES:
A CLOSER AND DETAILED LOOK

With its low labor market rate, skilled workforce, and agreeable laws, the Philippines offers promising opportunities for strategic partnerships with developed countries. These same factors are the common selling points of many BPO companies, which you may grow tired of reading. But in this article, we will not focus on the general information about outsourcing to the Philippines. Instead, we’ll give you a detailed explanation about the following:

The Philippine Outsourcing Industry Overview
The Filipino Labor Market
Support From Government Agencies
Finding And Selecting The Right Service Provider
Certifications You Should Look For
Pros And Cons Of Different Outsourcing Business Models
Importance Of Company Culture To BPO Companies
Common Concerns When Outsourcing To Philippines
Related Laws And Labor Practices
The Art Of Strategic Shift Scheduling
Is The Philippines Outsourcing Industry Ready For Automation?
Inside The Four Corners Of A BPO: Recruitment, Training, QA, Support System

OUTSOURCING TO THE PHILIPPINES
OVERVIEW

Outsourcing in the Philippines started with a call center in 1992. Back then, it only provides basic services such as email response and service management. This is considered as the First Wave of outsourcing.

With the support of the government and a good economic climate, it has grown into a billion-dollar industry. During this Second Wave, top global firms started to operate in the country. The Philippines also surpassed India as the top outsourcing destination.

Today, hundreds of BPO companies deliver call center services, back-office support, data transcription, engineering development, animation, and digital content services to various businesses around the globe. Now on its Third Wave, many companies saw the need to shift to offering higher-value services to keep up with the age of automation. By doing so, local and international companies will keep on outsourcing to the Philippines.

.

OUTSOURCING TO THE PHILIPPINES FACTS

  1. The BPO industry is considered as an economic pillar in the Philippines.
  2. The Philippines ranked 10th among the world’s top outsourcing destinations.
  3. In 2018, six Philippine cities are included in the top 100 global destinations: Manila (2nd), Cebu City (11th), Davao (75th), Sta. Rosa, Laguna (87th), Bacolod (89th) Iloilo (92nd).
  4. 77% of the country’s customer base came from North America while 9% each came from Europe, Australia, and New Zealand. 5% came from Japan.
  5. The Philippine government enacted the Special Economic Zone Act that gives special privileges to foreign investors. It is expected to boost economic growth and generate employment in the country.
  6. The call center industry is one of the fastest-growing industries in the Philippines today.
  7. From 0.075% in 2000, the gross domestic product contribution of the outsourcing industry grew up to approximately 7% in 2016.
  8. The industry’s annual growth projection until 2020 is at 9%.
  9. By 2022, outsourcing in the Philippines is projected to become a $40-billion industry based on a 16-percent annual growth rate.
  10. In 2015, the Philippine healthcare information management outsourcing industry generated $3 billion in revenue.
  11. As of June 2016, there are 851 establishments registered under the business process outsourcing industry.
  12. The call center industry is expected to create 60,000-70,000 jobs per year until 2022.
  13. Outsourcing, in general, helps stabilize the Philippines’ economy.
  14. A 2015 labor force survey found out that 47.1% of the Filipino labor force are millennials.
Start reading