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Home | Blog | Start Outsourcing Your BPO in The Philippines

Start Outsourcing Your BPO in The Philippines

By Yelyna

Updated on August 4, 2023

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The Stance of BPO in the Philippines

As a BPO service provider, Magellan Solutions understand that one must be on top of innovation.

We must seek continual growth with our agents and business partners to stay relevant. Employees must meet the expectation of learning new skills to be on the same level as the global market.

The country’s main delivery models of BPO outsourcing are captive centers and third-party outsourcing. Clients nowadays want a hybrid approach to outsourcing while still keeping work in-house. The spread of non-core work reduces the risk of information leakage.

Future of the Philippines call center 

The BPO industry continued its positive growth rate ever since 2016. Because of this, it was expected for the income range to be US$ 40 to 55 billion by early 2021.

We are already at 1 million employees and still counting. As a result, the country is projected to increase employment in the coming years. This puts the business as a priority by the Philippines Development Plan. Benefits are being mandated to keep the employee increase going.

For local industry sectors, the leading subsector is Call Centers. The Philippines has taken over India in leading the call center industry. We are then expected to contribute to the industry’s growth in future years significantly.

The University of Asia and the Pacific (UA&P) reported that call centers have a predicted growth rate. Yet, as 2021 begins, there might be a reduction. Philippine Banko Sentral ng Pilipinas is speculating on this. It is because human voice sources will develop in favor of computer-generated responses.

Setups and Philippine Outsourcing models 

Foreign investors want to work only in Manila when they outsource to the Philippines. With shop setup considerations, they go over talents from provinces like Cebu, Davao, Dumaguete, Clarke, and Baguio. This has resulted in the rapid development of BPO Centers in such areas.

These rural areas are as capable of absorbing the skilled work the BPO industry is moving towards too. This proves how outsourcing in the Philippines opens a lot of opportunities.

Listed below are some of our outsourcing models that you may find helpful.

Third-Party Outsourcing

This is the most common delivery model associated with BPO in the Philippines. It is the transfer of tasks to an entity outside the organization. According to a study by the Everest Research Institute, outsourcing to an offshore IT vendor is more affordable. This is in comparison to establishing a captive unit owned by the company.

Project-Based Outsourcing

Suitable for companies looking for short-term cost savings on one-time or test projects of low to medium complexity. This model is ideal for projects with well-defined requirements. You may choose this if demand is irregular or you cannot hire full-time employees.

Dedicated Offshore Center

Clients that want a cost-effective alternative to in-house production often use an option. Dedicated offshore centers establish a team of local professionals. This team would be working full-time for the client.

Captive Centers

They are also called an offshore shared service. Captive centers are an in-house delivery model. The company owns some business process facilities in locations outside its principal office. As a subsidiary, it allows the company to support lower-cost offshore resources. Meanwhile, they still maintain complete control over processes.

Hybrid Model

Today, captive centers have matured into a hybrid model. These models could represent 15 to 20 percent of all work sent to offshore providers. At least 80% of the captive units in Manila alone provide voice, back-office, and IT-related services. About half of the captive units providing voice services are completely or owned by a U.S. company.

Work on business process outsourcing in the Philippines with Magellan Solutions.

High-skilled jobs are expected. This is as long as the workforce adapts and upgrades its skills.

Magellan Solutions offer training that adapts to your needs. We also guarantee quality service with skills that we hone and upgrade.


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