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 in-depth below. So read on!
FACT: The BPO industry 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 for 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.
Since the start of the business process outsourcing industry in the Philippines in 1992, it has already come a long way. With its nearly three decades of existence in the country, it has earned a prestigious reputation as one of the global leaders.
The year 2020 is a challenging time to almost every business industry around the world.
The global health crisis greatly affected many businesses including the business process outsourcing industry to the point that some decided to permanently close.
The pandemic also changed the way companies do business. The question now is how big is the effect of this health crisis on the BPO market? Let’s find out through the 2020 statistics for the business process outsourcing industry.
The Philippines has proudly held the title of “The BPO Capital of the World” since 2010.
The country has gained advantage in the BPO market because of its compatibility with the West. This is also one of the reasons why many businesses in the United States resort to the Philippines as their outsourcing destination.
They specialize in the areas of customer service, both voice and non-voice related services, and information technology support.
Today, the business process outsourcing industry in the Philippines is experiencing a nine percent growth. It is considered one of the ten high priority areas by the Philippines Development Plan.
Moreover, here are some of the points to note about the business process outsourcing industry:
These three factors are among the top challenges BPO companies need to address to go to the next level of global outsourcing.
Artificial intelligence has been around for decades. Many businesses are now opting to use it for simple and mundane tasks. But it is not as reliable as always.
It is ideal to follow what Magellan Solutions and other BPO companies are doing. We utilize artificial intelligence together with the human workforce to improve efficiency while reducing the risks and accuracy.
And to address the trials in terms of data analytics, which is also becoming an even bigger thing, BPO companies like Magellan Solutions hire professional people to take care of the data analytics. 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.
Cybersecurity has 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.
What Magellan Solutions do to prevent this issue from happening is ensuring the security of all the data, software, programs, and many more. We have proper certifications to prove that we implement and follow strict protocols such as the following:
Through the collaboration of various companies and the government, the Philippine BPO industry is here to stay.
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. Companies outsourcing from this country are more likely to cut their labor costs to 70% and can even go as high as 90%. This will benefit large corporations, start-ups, and small companies.
A huge percentage of the Philippine population is adept at using English with a youth literacy rate as high as 97.94%. Since grade school, Filipinos are already learning to speak in English. Through this, they develop a neutral accent. This makes a lot of sense because many clients are from English-speaking countries.
High-quality talent pool
The Philippines has a high rate of college graduates and job hunters every year. In fact, there are more than 700,000 graduates in 2017. 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, being colonized by different countries such as Spain, America, and Japan in the early years, Filipinos can adapt well to different cultures. The people are very open to western culture and know many things about it.
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 strong sector of the BPO industry that the Philippines does well is call center support services.
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, has a direct relation to customer service.
There are many different types of customer support services that are done through various mediums like phone, social media, live chat, and omnichannel support. 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.
When you outsource a call center customer service, your company can basically:
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