by: Regina Del Rosario of Booth& Partners
Stock photo from Rostyslav Savchyn
If you have been checking tabs with what’s trending in the business-processing sector lately, you’ve probably heard about outsourcing. It is simply assigning tasks to a third-party service provider for the company to focus on its core competencies. Outsourcing began a few decades ago but has since undergone a revolution in the information technology age.
The advent of the Internet, alongside the continuous advancement of technology, has enabled outsourcing to become more convenient and cost-effective for companies. It definitely has a lot of advantages and most companies that have tried it never looked back.
Aside from the fact that it costs cheaper to outsource than to create an entire department for a particular task, project management systems have also improved, allowing for seamless communication and collaboration. But with all the available outsourcing service companies overseas, which ones should you hire?
Outsourcing to the Philippines
Filipino Business Process Outsourcing (BPO) companies have dominated the global outsourcing industry, employing more than 1 million Filipinos, and earning about $22.9 billion in 2016. For 2020, projections are looking much brighter, with expected revenue of more than $50 billion.
The Philippines is also the top destination for multinational companies that are looking to outsource specific IT specializations. It has outranked India when it comes to total employed professionals and total industry revenue.
It’s not strange that more businesses are relying on Filipino employees when it comes to outsourcing. Here are a few reasons why the Filipinos have earned the trust and confidence of international and local businesses:
- English Proficiency – As a former American colony, the Philippines has unmatched American influence in the Far East. Because of this, its education system allows most Filipinos to learn basic English during their early schooling years. That knowledge continues to advance once he or she reaches and finishes a bachelor’s degree.
Statistics show that the literacy rate in the Philippines is at 95%. In a Filipino BPO setting, most of the IT professionals talk directly with clients simply because they can. Most of the time, clients don’t need to relay instructions to BPO supervisors or managers because they can just instruct the outsourcing employees directly.
- Service-Oriented Attitude – Filipinos are known to prioritize clients’ needs and do whatever it takes. Most companies that have worked with BPO companies in the Philippines can testify that Filipino service providers will do everything to deliver the needed results.
In some cases, outsourcers even go out of their way just to provide satisfaction to the client. Resourcefulness is one of the positive traits that Filipino outsourcers are known for. This is also one reason many companies are choosing Filipinos to handle their outsourced tasks and projects.
- Hardworking Culture – The majority of Filipinos working in the BPO sector were not born in financially well-off families. They had to work hard and smart to provide a better life for their loved ones. This is one of the reasons Filipinos became widely recognized all around the world as excellent service providers.
This goal of success is also one of the most usual motivations of BPO employees in the Philippines. So what about it? This ensures that outsourcers will always give their 100% in finishing tasks and projects.
- Cost-Effective Rates – Together with India, the Philippines ranks among the least expensive countries when it comes to providing outsourced services. Hiring a Filipino BPO company to accomplish a particular IT project costs a lot less than doing the same project in-house.
If you decide to outsource, you won’t need to think about the necessary office rentals, infrastructure, required software, and legal services essential to run an IT department. The BPO company will take care of all these things for you. To put things into perspective, outsourcing to the Philippines will allow you to save up to 60% on operation costs alone.
That may already be a huge chunk of savings on your part, but it does not stop there. If you know where to look, you can even get better rates and discounts from top BPO companies.
- Large Pool of Employees – As mentioned earlier, the Philippines employs more than a million IT professionals, and that number is expected to increase in the coming years. This means you will never run out of options.
Even with the high number of multinational companies getting BPO services from the Philippines, you can be sure that there is still a reputable outsourcing firm that can handle your needs efficiently. In addition, the median age for working Filipinos today is 23 years old, meaning you won’t just get less expensive services, but also fresh talent.
Make Your Move
Outsourcing to the Philippines is indeed one of the most rewarding decisions you’ll ever make for your company; that is if you’ve finally decided to outsource some of the backend tasks in your company. Filipino BPO professionals are hardworking, service-oriented, and highly proficient in English, and that significantly separates them from other countries offering outsourcing services.