Why is the Philippines The Best Place for BPO?
In this article, we will take a closer look at the BPO sector, and how its close relationship with Filipinos has spun a multibillion-dollar industry.
Among the many things, the Philippines is renowned for being the Business Process Outsourcing capital of the world. Even in the age of the internet, many have still not heard of this small country in Southeast Asia. That is why people are asking, “is the Philippines the best place to establish a BPO company?”
Companies like Accenture, Emerson, Sykes Enterprises, and a host of others have called the Philippines their home for more than a decade now, and there are no signs of BPO operations slowing down in the country.
What is BPO?
Time was when a business needed to be a jack-of-all-trades to be successful. Companies of yesteryears tried to provide it all under one roof. The strategy of companies nowadays has evolved and is geared to focus on doing what they do best and outsource the rest. An increasing number of businesses are catching on to this thinking.
The demand for specialization and concentration on the company’s core business has initiated the trend of employing Business Process Outsourcing companies, or what is more popularly known as BPO. Business process outsourcing firms have grown and thrived in countries where labor cost is not so expensive, such as China, India, and of course, the Philippines.
BPO firms in the Philippines provide services to bigger, more often multi-national, companies that prefer to concentrate on their core business processes. They pass on generic tasks or processes that are more routinary but not necessarily of lesser importance, to a third-party provider of services.
What services do BPO companies provide?
The services that are most frequently outsourced include Customer Care Services, Call Centers, Marketing tools and solutions, HR solutions, Accounting, Financial Services, IT Help Desk Services, and other nitty-gritty details that most firms want to be free of.
While these are necessary processes, businesses have come to realize that it is more practical to outsource these tasks so they can focus on what their company is all about.
BPOs in the Philippines
In the Philippines, more and more BPO firms are building business centers to take advantage of the affordable personnel cost and the rich supply of highly-trained professionals.
You can find established BPO companies like Convergys ( now Concentrix), Accenture, Genpact, Transworks, WNS Global Services, Skyles, IBM Daksh, and many others, usually coming from the UK, US, and Australia.
Outsourcing in this country – a nation of 110 million people – provides a lot of opportunities. The people are highly adaptable and are always open to upgrading their skills. That is why even with the arrival of Artificial Intelligence and Virtual Reality, BPO companies continue to hire Filipino professionals.
These companies recognize the Philippines as an enticing offshore outsourcing destination for many reasons, including its low cost of living, low labor costs, and a talent pool of young, educated, customer-oriented, and English-speaking individuals.
Support coming from the Philippine government has always been strong for the BPO sector. The Philippine Development Plan considers this industry as vital to the country’s high-priority development areas. So much so that the country has identified BPO workers as today’s new breed of heroes, alongside overseas Filipino workers. As such, many BPO centers have been labeled as essential businesses and been allowed to maintain operations throughout the pandemic, so long as abiding by safety protocols.
Benefits of outsourcing to the Philippines
- Cost efficiency
One benefit of outsourcing to the Philippines is costing – the primary reason why companies outsource in the first place. Labor costs are significantly lower than in the US or UK, and so is the cost of the rent. The country also provides tax holidays and other exemptions that make it attractive for investors.
- Access to superior talent
The Philippine education system closely resembles that of the US, that is why it has a steady stream of BPO-ready workforce that companies can hire on-demand. The country has more than 450,000 college graduates every year, and each one has gone through rigorous English training.
- Neutral language
The Philippines counts English as one of its official languages, and its people use it to converse daily. Thus, the BPO sector is full of individuals who can speak English in American accents. Need Australian or British sounding employees? Not a problem, as you can train Filipinos to sound like them.
- Cultural influence
Filipino culture is a mix of Spanish and American influence. This makes the country a good fit for companies coming from America and Europe.
- High-quality deliverables
Surveys conducted among clients for service delivery quality always rank the BPO sector in this country among the top of the list. Strict quality standards are the main focus among Filipinos at all times.
- Time flexible
Filipino workers are ready to work at any schedule to provide 24/7 service. They also have no qualms about working during holidays, often sacrificing time for their families to serve customers. That is why international brands like to work with Filipinos, as they value the dedication and hard work they put in each day.
- Better quality of life
Compared to its closest competitor, India, the Philippines has better amenities and, overall, a better quality of life. This is crucial because it affects the quality of work they produce. In addition, US and UK company executives who come to live or manage operations internationally enjoy the culture, climate, and amenities.
Conclusion
There are plenty of reasons why companies continue to flock to the Philippines and establish their businesses there. Its people have a great work ethic, are easily trained, are great communicators, and in tune with the latest technology. The government also provides plenty of benefits, making it the ideal place to invest.