The Business Process Outsourcing Industry (BPO) In The Philippines
The Business Process Outsourcing Industry (BPO) In The Philippines
For years, the Philippines is one of the best BPO service providers worldwide.
Until now, both local and global businesses consider this country because of its capacity to provide top-notch support.
There are many reasons why the Philippines became a top outsourcing destination, which we will discuss later.
When did BPO start in the Philippines?
The operation of BPO in the Philippines actually started in 1992 and not in 2000.
An international Global Resource Center in 1992 has instigated the beginning of the local BPO industry in the country. Three years later, Congress passed the Special Economic Zone Act. It paved the way to the creation of the Philippine Economic Zone Authority (PEZA). As a result, this has opened many doors for international BPOs in the country.
A multinational BPO and a US-based company, meanwhile, opened their Philippine branches in 2001 and 2003. It has generated jobs and increased the country’s GDP.
Based on the latest report from PSA, the country has 851 registered BPOs and 429 call centers. With these figures, the Central Bank of the Philippines expected a 10-percent increase in revenue. That’s approximately US$24.5 billion!
Meanwhile, the majority of the Philippines’ clients came from the United States, a Reuter report revealed. It has also a growing list of clients in countries such as Australia, New Zealand, and Europe.
Challenges faced by the Philippine BPO industry
- Artificial Intelligence
- Data Analytics
- Cybersecurity
These three things are now facing and threatening the country’s growing industry. Though Artificial Intelligence has been around for decades, many businesses are now opting to use it for simple and mundane tasks.
Even so, the BPO in the Philippines remains strong.
Companies, together with the government, are finding ways to solve the problem. They are stepping up their game by educating the workforce to learn higher-level tasks.
In relation to that, data analytics is also becoming an even bigger thing. Because of its uses and advantages, many companies give importance to huge data and information. This is a good reason for the country to provide services related to data analytics. BPOs have also started hiring people who can work in it.
The cybersecurity had also affected not only the Philippines but all companies, brands, and corporations in the world. With the European Union implementing a stricter online regulation, BPOs have to pass stricter online security. What good will it bring? Clients and customers who are safe from online fraud and other online illegal transactions.
Through the collaboration of various companies and the government, the Philippine BPO industry is here to stay.
Benefits of BPO in the Philippines
Now, let us talk about the advantages a company can get when they outsource.
Reduce costs/ save money
The first thing is cost-reduction. Cost-effective services are offered all around the Philippines. This will benefit large corporations, start-ups, and small companies.
English proficiency
A huge percentage of the Philippine population is adept at using English. Since grade school, Filipinos learn to speak in English. Through this, they developed a neutral accent. This makes a lot of sense because many clients come from English-speaking countries.
High-quality talent pool
The Philippines has a high rate of college graduates and job hunters every year. As a result, the pool is good and is beneficial to the BPO industry in the country. Employees, especially fresh graduates, are also very flexible when learning.
Ability to adapt to different cultures
Due to its historical background, Filipinos can adapt well to different cultures. The people are very open to western culture and know many things about it.
Tax incentives
The Special Economic Zone Act granted generous tax incentives to international companies. A smart move for the government. Through this act, many businesses can save more money if they choose the Philippines as their outsourcing destination.
Another sector of the BPO industry that the Philippines is doing great is the call center support.
What is call center support?
Call center support is the customer service part of the business. This is where direct customer transactions take place. An inbound call center, for instance, is directly related to customer service.
There are many different types of call center customer support services. Many mediums or omnichannel support also exists. This is where call centers or BPO solutions have different channels that are available to their clients.
For example, a company can use social media, email, live chat, and or phone to conduct customer service. It enables them to help more customers and make them happier with the business.
In general, when you outsource call center customer service, your company can basically
- Cater to customers 24/7
- Solve issues efficiently
- Have multilingual support
- Take care of overflow calls.
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Magellan Solutions
Magellan Solutions is a Filipino-owned outsourcing company. It provides inbound and outbound contact center services as well as other business process outsourcing (BPO) services that cover finance and accounting, healthcare, sales and marketing, engineering, architecture, design, data management, human resources, legal, and IT. Combining years of experience; unrivaled expertise; and capabilities across industries and business functions, Magellan Solutions bring optimum approaches to strategies of business operations by delivering customizable BPO and customer management solutions to any type and any size of business.
