Since the turn of the century, business process outsourcing (BPO) has been one of the driving forces in the economic growth of the Philippines. As the country continues to enjoy a booming BPO industry, a new arrival entered the business arena. Knowledge process outsourcing, popularly abbreviated as KPO, recently arrived in the picture, promising a bright future in the country’s business scene.
The country boasts millions of Filipino who have proficient command with the English language. This makes the country an attractive and appealing BPO hub for foreign companies despite tough competition with other neighboring nations. According to the Call Center Directory of Philippine Economic Zone Authority (PEZA), there are nearly 800 call centers in over 20 prime locations. While the Philippines continue to dominate the top position in the BPO sector, the country is also an ideal destination for the global outsourcing of other specialized skills.
BPO and KPO Compared
Business process outsourcing is defined as the contracting of the internal business operations (such as human resources, finance and accounting) or customer-related services (such as contact center functions) to a third-part service provider so that the company could focus on their core business activities. On the other hand, knowledge process outsourcing involves supplying manpower for core business processes that require in-depth analysis and perspective and often form an integral part in the organization’s value chain. There are immense opportunities for KPO in Philippines, as numerous global companies are looking for highly skilled people to perform their core business activities.
While BPO industry only requires its candidates to be proficient English speakers, the KPO sector requires skilled professional to perform “high-end” tasks. These often require advanced analytical as well as technical skills. They should also be complemented with knowledge and expertise in proprietary domain. Tasks in knowledge process outsourcing industry include legal and medical services, research and development, web content, animation and design, among many others.
Prospective Hotbed for More Outsourcing Ventures
The country produces a lot of graduates annually, and majority of them are coming from engineering and technology-related courses. They are the most ideal candidates to enter the KPO industry since it is generally geared toward the IT processes. Companies are also keeping an eye on the existing labor pool of professionals because they are the perfect personnel for the industry since they already have developed the necessary skills and competencies for the job.
Aside from a talented people to form the workforce, the Philippines also have business-friendly policies and favorable economic atmosphere. Additionally, it also offers excellent IT infrastructure and significantly low costs among its competitors, making it the prime choice of foreign companies. These powerful combinations certainly contribute to the rapid growth of KPO in Philippines.
After successfully securing a place in the BPO arena, the country is poised to handle more complex and higher-value professional functions. With the Filipino people’s creativity, strong work ethic, and remarkable abilities, the nation has an optimistic future in becoming the primary provider of wide array of knowledge process outsourcings tasks and create a multi-million dollar industry.