Since the dawn of the industrial revolution, outsourcing has been a strategy used by many large businesses to provide quality services and products for a lower price. Historically, outsourcing entailed factory work and farming, while more recently, it may conjure up images of call centers and IT help over the phone. But there’s more to outsourcing than what meets the eye, and there are a surprisingly large amount of services that businesses often delegate to business process outsourcing or BPO.
Though it may seem counterintuitive to outsource baseline company work, such as data entry and mining, accounting, and customer service, this actually frees up time and money for in-house employees to focus on larger company goals. For these reasons and many more, companies are increasingly looking at outsourcing to the Philippines.
BPOs in the Philippines is not a new concept and already make up a large percentage of the country’s GDP, 7% to be exact. And analysis only expects this number to keep growing in the coming years, as more remote work is expected in the wake of the COVID-19 pandemic and companies focus on reaching a wider, more global customer base. Still, what is it specifically about BPO services in the Philippines that makes this country a global leader in the industry? For one thing, the Philippines’ large workforce and focus on higher education, as well as its strong cultural connection with the United States, make it an ideal candidate for BPO work by western companies.
Many foreign businesses have started outsourcing to the Philippines for its leading voice-based task work, specifically specializing in IT help desk services and customer service work. With many employees of BPOs in the Philippines being fluent in English, speaking with little or no accent, and being well aware of the nuances of working with western clients and customers, BPO services in the Philippines are a culturally competent choice for many western businesses.
BPOs in the Philippines are also great for large-scale business tasks, as the industry leaders have continued to invest in scaling up operations to fulfill these needs. Call centers in the Philippines are often upgraded with better technology, larger facilities, better training, and funding for continuing education. Additionally, many BPO companies have partnered with local universities to offer courses on BPO skills to interested students. The focus on improving services and increasing employee knowledge in the industry is a primary reason why contact centers in the Philippines continue to show massive growth and have emerged as global leaders in the industry.
The recent addition of artificial intelligence to the space once thought to become a major competition for BPOs has actually ushered in an evolution of the industry. Rather than competing with the new technology, a fight that would lead to inevitable loss, industry leaders have partnered with it. Contact centers the Philippines now focus on integrating new AI chatbots and software to streamline services and offer specialized training for employees on this new technology. In this way, foreign businesses don’t need to worry about the operating and training cost of these technologies, but still are able to benefit from them.
With so many positives, many businesses are jumping onto the outsourcing trend, and it’s’ hard not to see why. The Philippines’ BPO industry allows businesses to procure quality, efficient services for a fraction of the cost, allowing them to focus on building their brand.