Business process outsourcing(BPO)
is one of the most flourishing industries in the Philippines. Besides competitive labor cost and infrastructure offerings, it is also home to a large pool of talented English-speaking people. Thus, it is not surprising why it is among the top choices of foreign companies worldwide. Just recently, Tholons 2013 listed Manila, Philippines as a top outsourcing destination next to Bangalore and Mumbai in India.
The Philippines as a BPO Hub
When it comes to outsourcing, it’s always a battle between India and the Philippines. Though India has a huge population that can tap more outsourcing firms, the communication skills and familiarity of Filipinos to western culture have given the Philippines a competitive advantage. According to the Information Technology and Business Process Association of the Philippines (2012), the business process management in the country has employed 776,794 Filipinos reflecting a 21 percent growth from 2011.
Besides exceptional communication skills, Filipinos are also known for their positive attitude and high level of competence. Contact centers in the country have a wide range of technologies (ex: IP telephony and social media)that help agents effectively communicate with customers. Moreover, it offers a number of compelling benefits such as the following:
- The Philippines is a global leader in voice-related BPO;
- It has low infrastructure and labor costs—approximately 80 percent less than developed countries;
- It has large and developed central business districts;
- It receives a strong support from the academe and the government;
- It has the fastest growing workforces in the world; and
- It has a highly skilled and educated resource pool.
5 Things to Keep in Mind in Outsourcing
Outsourcing your business to a different region or country takes a lot of risks. While you can choose among a large number of BPO companies, it is important to consider several factors before signing a contract.
Are you looking for innovation? Would time zone differences affect your business? What domain expertise do you need? These questions should determine your considerations in choosing a perfect location.
Before outsourcing in the Philippines and/or other regions in the world, you may consider these following points:
- Cost/pricing– Pricing is one of the most important considerations in outsourcing a business. It is important to determine whether your prospective outsourcing company could eliminate or control unnecessary operation and administrative costs.
- Flexibility– Choose an outsourcing company that could understand and provide solutions to your clients’ concerns effectively and appropriately.
- Management Team– Since the management team would determine your business success, it is important to choose experienced leaders who can fulfill your business objectives.
- Communication– Your prospective outsourcing company should be prompt in providing answers to queries. Moreover, it should be competent in asking information to your clients to avoid delays in decision making process.
- Reliability and Stability- Besides infrastructure security, an outsourcing company should also have a compelling technical support system.It should have backups for down times to ensure business continuity.
For more helpful tips in outsourcing, you may visit www.outsource-philippines.com or review other BPO articles and contents online.