The Basics of BPO For Companies That Outsource To Philippines

The Basics of BPO For Companies That Outsource To Philippines

The Basics of BPO For Companies That

The Basics of BPO For Companies That

Typical setups for outsourcing philippines

Foreign investors want to work only in Manila when they outsource to the Philippines. This has resulted in the rapid development of BPO centers in the country. 

Your business might not have the capacity to hire many employees. As a result, you may want to consider outsourcing. 

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 when you are unable to hire full-time employees.

Dedicated Offshore Center

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

Captive Centers

Also called an offshore shared service. Captive centers are an in-house delivery model. The company owns some business process facilities in locations outside their main 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 from 15 to 20 percent of all work sent to offshore providers. At least 80% of the captive units in Manila along provide voice, back-office, and IT-related services. About half of captive units providing voice services are completely or owned by a U.S. company.

Advantages with offshoring companies in the philippines

Magellan Solutions is one of the leading contenders of the BPO industry. With 17 years of experience under our belt, we believe that we have mastered offshoring services to SMEs and helped them expand their business.

Our past and current clients have experience positivities with our partnerships such as:

Full control

With staff offshoring, you are still the boss. Outsourced staff would concentrate on operations and business projects. This would all be  according to your given instructions. It is also important to remember that communication is key. Indirect access to the team can cause language barriers, miscommunication, and cultural gaps. This may lead to poor results and even failure to meet your expectations. 

Cutting operations cost

Cutting costs is one of the most common attractions. This is one of the many reasons why industries decide on offshoring their operations. Outsourced staff causes:

  • Decrease of need for direct employee salary
  • Less utility
  • The decrease in facilities and supply needed.

The pricing for staffing offshore is also cheaper. This is in comparison to business process outsourcing.

Dynamic team

An offshore team in the Philippines usually consists of young individuals. Young individuals  with fresh ideas, creative inputs, and solution-oriented when dealing with problems. This makes the country excel in many fields and makes us one of the top choices for outsourcing jobs. 


You don’t need to waste any of your time. We take charge in setting up your operations and a suitable office for your staff. We also take advantage of the time difference as we offer a 24/7 working team. Even if you are resting, your business continues its operations with us.

Government support

The government has been an integral part of the BPO success in the country. It has backed the industry up for over 25 years already. 

Support provided includes:

  • Training programs
  • Marketing
  • Improved infrastructure
  • Workforce pipeline building
  • Tax holiday
  • Tax exemptions

Multilingual speaking agents

The Philippines has the top spot for business English skills. This is according to GlobalEnglish Corporation. This is because at least 90% are English speakers in the country. It has become a great advantage in the Philippine outsourcing industry. There are also many Filipinos who speak other spoken languages in the world.

Why bpo philippines is the #1 for companies that outsource

Throughout the years, companies have chosen the Philippines as their top destination for outsourcing partners. 

Filipinos have neutral accents and the ability to adapt to different accents depending on their assigned region or country. Among the top countries that outsource include the United States, Australia, and the United Kingdom. On top of their natural-sounding accent and diction, Filipinos are mostly known for their customer-centric approach. Furthermore, the workforce is composed of well-educated individuals graduated from thousands of HEIs and universities in the country. This provides a stable hiring pool of quality individuals which BPO companies can utilize to deliver quality results to the clients.

Magellan Solutions has served small to medium enterprises to major players globally.

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