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10 Factors That Make Philippines the Top Outsourcing Destination for Businesses

Business Process Outsourcing (BPO) has been defined to be the delegation of IT-intensive processes and tasks to an external party, who in turn, manages the tasks and projects based on the company’s standards and measurable performance metrics. 

The specific tasks are normally done within the organization, but BPO allows for more efficiency. Some usual activities outsourced by companies include back office work, as well as technical services from copywriting and data analytics, to consulting. 

Thanks to globalization and technical innovation, companies can now easily outsource or hire someone from a country with cheap labor! 

What are the two types of BPO services?

Allow us to break down the BPO services for you! These can actually be categorized into two, namely back office and front office work. 

From the name itself, back office refers to tasks that will put you out of the spotlight. Employees won’t be directly interacting with the customers, and instead, would work on various services such as but not limited to accounting, human resources, IT, finance, and more. 

Next is the front office work. This is where customer service comes into play because it’s all about client-facing activities. Employees who are assigned with this task would be dealing with the company’s customers to either give them information or help them resolve a complaint. 

Not all countries are good at providing the best level of customer service, and if you are not careful, you might deal more harm to your company! For many years now, the Philippines has topped the list worldwide in terms of offshoring locations mainly because of its large talent pool, quality of work, competitiveness, and high English proficiency. 

Facts About the Philippine BPO Industry

Let’s look at the facts, shall we? It is important for you to understand why the Philippines is considered the top outsourcing destination in the world. 

1. The country is known as the Call Center Capital of the World. Based on the estimates from LSE, there are over 1.3 million people working in over 1,000 BPO companies. 

2. There are big savings on operational costs of up to 80% when partnering with contractors in the Philippines. Aside from that, when you compare the cost of labor with Australia, the US, and Europe, the cost of labor is up to 70% lower. 

3. The Philippines maintains a very high standard of education. There are hundreds of thousands of university graduates every year, and the literacy rate is always high at 97.5%. This is highly important for businesses, especially for outsourced front office work. 

4. The Philippines is one of the top English-speaking countries in the world, together with India, United States, Pakistan, and Nigeria. In fact, the country has over 92 million English speakers! You won’t be encountering any language barrier or real workplace differences, as employing Filipinos would be akin to working with Americans or even Australians.

5. The BPO industry in the country has thrived since the 90s. The country generated $26.7 billion in the past year, and it is forecasted to grow through the years. 

Outsourcing to the Philippines has become a critical strategy for most businesses. If your company is aiming for business transformation, long-term value, and customer satisfaction, then you need to start looking at where it begins. The country is perfect for back office tasks, but all the more for front office tasks where customer service is at play.

1. High proficiency in the English language
The Philippines is one of the top English-speaking countries in the world, so a high English proficiency is already a given. You won’t face any troubles with the language barrier, because the employees are guaranteed to deliver exceptional service to your customers without getting lost in translation. This is especially critical when dealing with irate people!

2. Big savings on labor costs
Compared to other countries, the cost of living in the Philippines is relatively low. For you, this means that the operational cost will also be lower especially if you compare it to what you usually pay in Western countries. Any business loves big savings, so this makes the Philippines appealing!

3. Customer-centric workers
Huge savings won’t matter if it meant transferring your power to a team incapable of delivering exceptional service. Lucky for you, the Philippines is also popular for its culture of customer service excellence. The country is known for its hospitality, and being customer-centric is already ingrained in everyone.

In relation to your business, these highly-skilled workers will make sure to help you become closer to your customers and instill loyalty in them.

4. A supportive government

The Philippine government understands the value of a foreign investment and is proactive in infrastructure investment. Their support has led to the industry’s status as one of the country’s biggest growth sectors.

5. Access to a rich pool of talent
There are over 41 million highly trained people in the workforce, and many are already experienced in the BPO industry. You will appreciate the improved productivity in your business and access to a rich pool of talent that may be lacking from your local workforce.

6. Data security
If you have a strict foreign data privacy act in place, you need not worry. The Philippines will ensure that their workers adapt to your privacy requirements.

7. The industry track record is exceptional
Prior to becoming a powerhouse in the BPO industry, Philippines has already become active since the early 90s to service international companies. The total revenue from this sector has been reported to be over $26.7 billion in 2020 alone. It is also expected to grow in the coming years!

8. 24/7 Support
You already know this. It will cost you more to have your current staff work around the clock 24/7 just to provide customers with what they need. It would be more reasonable to outsource to the Philippines! The customer service representatives here can take and manage calls in the early morning and late at night, thanks to the difference in your time zones!

9. Compatible with western countries
The Philippines is pretty much exposed to Western culture every day. This makes them compatible with foreign companies, and won’t have a hard time socializing or working with them.

10. The country’s economic growth
The country is known as the outsourcing and call center capital of the world. They can drive economic growth, which is highly beneficial for many foreign investors.

Outsource work to a place providing the best level of customer service! If you need a hand, send us a message!

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