Why outsourcing in the Philippines is getting popular among businesses globally?

outsourcing in the Philippines

The outsourcing industry worldwide (including the BPO industry or BPO companies) is booming more than ever. Around 64% of businesses worldwide are now outsourcing for their business growth and business continuity. What outsourcing destination is preferred by these enterprises? How can outsourcing to the Philippines give you significant cost savings? We will discuss these in the article.

First, let us discuss the following terms: BPO industry (commonly called call center industry and the BPO sector), offshore outsourcing (also offshore team/offshore staff), and several terminologies.

Outsourcing industry – definition

What is outsourcing?  Outsourcing is the delegation of business processes to an external third-party service provider. It helps you focus on your company’s core business competencies and leave the rest to be handled by experts.

Most enterprises hire dedicated developers to augment their lack of in-house staff.

Types of outsourcing

Outsourcing services are broadly classified into business process outsourcing (BPO) and IT Outsourcing (ITO).

BPO includes non-core business processes such as customer care, technical support, telemarketing, data entry, claims to process, and remote staff.

  • Customer care: It involves tasks like handling customer queries, providing product information, taking customer feedback, etc.
  • Technical support includes troubleshooting software issues, printer problems, and other technical glitches.
  • Telemarketing: It is a process of selling products or services to customers over the phone.
  • Claims to process: It involves tasks such as insurance claim processing, paper claims, etc.

On the other hand, IT outsourcing deals with technical processes such as web development, software development, etc.

  • Web development: It involves tasks like website designing, coding, testing, and maintenance.
  • Software development includes developing custom software applications, enterprise resource planning (ERP) solutions, etc.

Australian companies need these services to keep up with the competition, but they don’t have the time or resources to do everything in-house. So they outsource some of these processes to call centers or IT foreign companies in other countries like the Philippines.

Why choose the Philippines for your software development projects?

The Philippines has been the leading provider in the global BPO industry for over a decade.

This is because several factors make the country an ideal destination for outsourcing.

First, there’s an abundance of skilled Filipino professionals who are fluent in English and well-versed in various business solutions and IT processes because they are trained through international schools and universities. Outsourcing companies prefer Filipinos because of their adaptability.

Second,  the Philippines, as an outsourcing destination, has a solid work ethic. Filipinos are hardworking, reliable, and consistent in meeting targets and deadlines. They have a can-do attitude and are always willing to go the extra mile to get the job done.

Third, the country has a very conducive working environment.  Many outsourcing companies in the Philippines are now using cloud-based platforms and other cutting-edge technologies, which allows them to provide quality service at a lower cost.

The Philippine government understands that a business process outsourcing (BPO) company is a significant contributor to the country’s economy and to a foreign company that is offshore outsourcing.

The government support and provides various incentives (including to create BPO specific curriculum) to help these companies grow and succeed. These include tax holidays, discounts on real property taxes, and investments in infrastructure. It is the primary reason why they desire outsourcing to the Philippines.

What are the benefits of outsourcing to the Philippines?

There are many benefits of outsourcing. They understand it perfectly well if you have a management team, specifically managing offshore operations.

  1. Outsourcing to the Philippines includes lower costs, reduced legal liabilities, better quality work, access to skilled professionals, and faster turnaround times.
  2. As a client, you don’t need to pay for the health insurance of the offshore workforce since a third-party contractor will handle them.
  3. Your BPO partner (whichever outsourcing company they are) will also be responsible for handling any legal issues with your offshore talents.

Small businesses can benefit fully when they try offshore staffing or perhaps outsourcing a local talent to simple tasks like data processing and back-office support. As a business owner, you can research this topic to gain insight before you do offshore staffing.

Why is business process outsourcing getting popular?

The Philippines BPO has always been an excellent option for enterprises looking to reduce costs. While western culture is different from Southeast Asian culture, the Philippines completely understands these differences, so most Filipinos are familiar with western company practices.

Outsourcing is popular among companies because it is a cost-effective solution to help enterprises save on operational costs.

There are many reasons why outsourcing has become popular among businesses globally. Some of these reasons include the following:

  1. To save on costs – This is one of the primary reasons companies outsource. Outsourcing specific processes or functions through task allocation save on unnecessary HR costs while achieving your business goals.
  2. To access skilled professionals – Many enterprises outsource because it allows them to tap into a global talent pool of experienced professionals. By outsourcing services such as IT, marketing, contact center, and customer support, you gain access to talented individuals with the skills and knowledge needed to help your company succeed.
  3. To improve efficiency and productivity – When enterprises outsource to supply their business needs and services,  they can focus on their core competencies and leave the rest handled by experts. This helps them improve efficiency and productivity, leading to better results.
  4. To focus on main company goals – By outsourcing non-core functions and services, companies can focus on their core strengths and leave the rest to be handled by service providers. This allows enterprises to prevent management issues and maintain an excellent track record.
  5. To be agile and responsive to change – Outsourcing helps businesses be more agile and responsive to change. With the help of an outsourcing company, companies can quickly adapt to changes in the market without incurring additional costs. Other industries are also vying for this essential aspect of company operations.

The wrap-up

Indeed, hiring third-party contractors or outsourcing a team in the Philippines has many benefits. Whether you are a small enterprise owner or a large corporation, outsourcing can help you achieve your company goals and stay competitive in today’s fast-paced industry landscape.

For outsourced developers, better access to technology has enabled their clients to take full control of the project. Their clients, in return, gain more from these technology ventures.

The world of commerce is expanding day by day, and improvements and modifications are introduced each passing time. Different industries must go with the flow!

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