Reasons for Outsourcing to Top KPO Companies in the Philippines

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outsourcing to top kpo companies Most international research and data firms have placed the Philippines as the number one trending country as the top outsourcing destination, says Aside from the rapidly increasing number of local call centers, the equally thriving high-end services also play a vital part in this huge feat. So what made foreign firms keep on outsourcing to top KPO companies in the Philippines?

Why Do Other Countries Keep on Outsourcing to Top KPO Companies in the Philippines?

1. Low Production Cost and Maximized Profit

The 2009 global financial crisis forced many businesses to search for low-cost places to set up their operations on outsourcing. Countries that have lower wage and cost of living expenses — like the Philippines — highly benefited in this huge move. Since wages in developing countries are 50 to 80 percent lower than in the US and UK, many firms take advantage of this, thus, resulting to widened profits.

2. High-Quality Service and Production

While production costs are low in the eyes of foreign firms, for the local graduates and workers, the pay offered by BPO/KPO companies are more than exceptional. Hence, a large pool of graduates with outstanding English communication and programming skills apply in various call centers and outsourcing firms. At present, the Philippines currently house a total labor force of approximately 69.4 million, with over half a million college graduates every year.

3. Cost-Efficient Locations, Stable Power Supply, and Solid Telecoms

Rob O’Malley, a call-center outsourcing authority, noted the Philippines’ affordable, high-class telecom facilities, power supply, and office spaces, all main contributors to the country’s outsourcing success. With the government’s continuous effort to establish an IT-enabled economy, the Philippines maintains its intense computer security and building monitoring systems and complete office services. Compared to other developing countries and nations in the Asia-Pacific region, the Philippines proves to be perfectly suited for the highly demanding work provided by the industry.

4. Open and Business-Friendly Economy

Another significant factor that keeps businesses outsourcing to top KPO companies in the Philippines is its Build-Operate-Transfer (BOT) investment scheme, which allows 100% foreign ownership in almost all sectors. BOT is a type of concession involving finance, construction, and maintenance of a facility for a certain period until the ownership is transferred to a public authority. The process indicates that the client has a right to own the facility, while the third-party vendor gets the operation running and hands it over after the said period. During the concession contract, the third-party vendor and the client work closely with a senior client representative in monitoring the operations.

Most foreign companies choose the BOT model because it enables them to reduce the business and legal risks involved in entering a new country. It also helps in gaining and retaining specialized resources, and in the fast formulation of end-to-end solutions.

These said pluses are the reasons foreign firms keep on outsourcing to top KPO companies in the Philippines. They make the scheme suitable in the BPO/KPO field where large firms commence business in a country where they don’t have an existing operation. Likewise, it also fits small and mid-sized firms that do not have the expertise in the local business processes.

Whether you belong to the large firms or SMEs, Outsource-Philippines can cater to your business needs. Visit our services page to know more about our offers or our contact page to request for a free quotation.



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