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Home | Blog | Start Outsourcing Your BPO in The Philippines

Start Outsourcing Your BPO in The Philippines

By Yelyna

Updated on July 10, 2024

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The Stance of BPO in the Philippines

As a small business owner, you want the best support for your business at the lowest cost. One of the business business moves you can start now is outsourcing. Here are the steps to start outsourcing today:

  1. Start with tasks you can let go. As business owners, we want to retain control over everything surrounding our business. But when you want growth and expansion, you must let others take the helm, especially when it comes to tasks you are not a master of. You can start to delegate tasks to your subordinates. You can start looking for an outsourcing partner if it takes more than two people.
  2. Look for a reputable outsourcing provider. There are a lot of outsourcing providers out there. You can choose to inshore, nearshore, or offshore. Create an outsourcing shortlist of what type of BPO you would like to partner with. BPOs have several pricing structures, niches, and target locations – all vital to your operations.
  3. Establish Service Level Agreements and KPIs. A good and reputable provider will establish mutual SLAs and KPIs that will determine the success of your endeavor.

As an experienced BPO service provider, Magellan Solutions understands the needs of business owners who want to get the most bang for their buck. In our more than 18 years of experience, the best outsourcing setup that has worked incredibly well with small and medium enterprises is management oversight. 

What is Management Oversight?

As an experienced business process outsourcing provider, we have worked with over a hundred clients ranging from one-person operations to Fortune 500 companies. The common denominator of companies that have succeeded is those companies that allowed us to manage business processes, which are our forte.

A quick example would be customer support, where we oversee a company’s end-to-end processes, from initial response to handling the call and follow-ups.

Before we take in your business, we ensure that we study that part of your business process through our Implementations Team. All aspects of that process are studied primarily if we don’t have past data to guide us in measuring success. The Implementations Team will then determine several factors that will measure success and the figures that will be the KPI of the team that we put in place for your business.

Whatever gaps the Implementations Team finds, we report to our clients to suggest improvements and change processes when necessary.

This kind of process has helped several small companies to be competitive in the world stage.

To stay relevant, we must seek continual growth with our agents and business partners. 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 already have 1 million employees and are still counting. As a result, the country is projected to increase employment in the coming years. This makes the business a priority in 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 significantly to the industry’s growth in future years.

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, Clark, and Baguio. This has resulted in the rapid development of BPO Centers in such areas.

These rural areas can also absorb the skilled work the BPO industry is moving towards. 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 who 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 outsourcing business processes 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 offers training that adapts to your needs. We also guarantee quality service with skills that we hone and upgrade.

Contact us now for outsourcing inquiries!

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