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Business Process Outsourcing in the Philippines


If you are looking for cost-effective business process outsourcing services, then you can find them in the Philippines. The Philippines is home to over 3,000 outsourcing companies and the best part is that you can hire services at a competitive rate.

The Philippines is one of the most competitive outsourcing centers in the world. The Philippines outsourcing industry has been growing by leaps and bounds and has been fueled by its ability to provide overall higher quality at a lower price than the competition. Cost savings is just one of the factors that make outsourcing business processes to the Philippines a good decision.

Since the late 1990’s, the Philippines has been a hot destination for BPO companies in need of customer care services. The Philippines is not only excellent for customer care but is also one of the biggest providers of IT and software development. The Philippines has a unique set of factors and skill sets that make it a great country for outsourcing. This blog will look at some of the reasons why business process outsourcing is so popular in the Philippines and why this trend is likely to continue.

What is Business Process Outsourcing (BPO)?

Business Process Outsourcing (BPO) is the process of outsourcing a company’s non-core functions to an external vendor. They are often used by companies when they are looking for an efficient way to run their businesses, but cannot afford or do not have the time to do so themselves. The terms “outsourcing,” and “offshore outsourcing,” are often used interchangeably to describe this process. BPO vendors provide services such as customer support or IT management at lower margins than usual for SMBs.

BPO is a term for business process outsourcing, which can be defined as the outsourcing of business processes to low-cost providers in order to reduce costs and increase profits.

BPO in The Philippines

The Business Process Outsourcing (BPO) industry in The Philippines started back in the 1990s. It started as a simple call center and now it has evolved into a wide range of IT-related industries that take care of various concerns, whether it is for business or individual customers.

The BPO industry has helped provide thousands of jobs all across this sunny island chain. The Philippines is known for its BPO industry, which helps showcase the many talents of Filipinos. It has leveled the playing field and provided jobs to those who otherwise could not find work in other industries. It is now a huge and thriving industry that is supporting the livelihoods of millions of Filipinos and has even made the country one of the top outsourcing destinations in the world. BPO companies in The Philippines now operate as an intricate part of the global supply chain providing outsourcing services all over the world.

The BPO industry in the Philippines has indeed thrived due to the influx of foreign investments coming into the country. There are now more than 500 call centers in Manila alone. The main reasons why the BPO industry is thriving in the country are the cheap cost of labor and government incentives. The government is also investing heavily in the education sector that has improved the quality of the workforce. 

BPOs in the Philippines are better than ever! As the global demand for BPO services continues to grow, more companies in the Philippines are offering innovative, high-value services in order to compete in the global marketplace. The Philippines is one of the largest providers of offshore call center services in the world, offering BPO industry services in both English to over 100 countries. With the country drawing in more than $26 billion in revenues in 2020 alone, it’s clear that the BPO industry in the Philippines is in no danger of shrinking any time soon!

The BPO industry in the Philippines has seen a huge boom in the past decade and is showing no signs of slowing down in the next years to come. With the Philippines’ strong abilities in English and the low costs of living, the Philippines is an ideal place for outsourcing call centers and BPO companies.

What types of Business Processing Outsourcing (BPO) services do the Philippines offer?

The Philippines offers Business Process Outsourcing (BPO) services in the following areas: Call Center, IT, Accounting, and Data Processing.

Filipino Call Center Agent
Filipino Call Center Agent

1. Call Center Services

Call centers are the biggest business process outsourcing (BPO) sector in the country. The Philippines is considered the call center capital of the world, with the country being the top call center destination for multinational companies. The Philippines has a large pool of English-proficient, well-trained, and friendly candidates who are keen to work in call centers. As a result, the country has become the perfect place for call centers which has become the major source of employment for Filipinos.

The Philippines has an advantage because English is an official language and many Filipinos are bilingual. It is also known for its customer service, which makes it a perfect place to offer call center services. The country has plenty of young people with English skills, which are in demand by call centers.

2. IT Services

The Philippines offers a wide range of IT services, including software development, programming, and technical support services. It is estimated that there are about 250,000 to 300,000 people in the country who work with computer programming and software development.

The IT sector in the Philippines is a growing market and has a large talent pool in the IT sector, with more than 250 colleges and universities offering courses in computer science or information technology. This means that there is a rich supply of employees with technical skills.

RELATED: 13 Main Types of IT Services and Why They Matter to Your Business

3. Accounting Services

The Philippines offers accountancy services that include bookkeeping, auditing, and tax compliance. The country also has a substantial amount of experienced accountants which allows them to provide these services at an affordable rate.

Outsourcing accounting services in the Philippines is economical, efficient and it will give you an advantage over your competitors. People don’t realize how much it costs to run a business and maintain the payroll and accounts and taxes and all these things and that’s why outsourcing accounting services is a good idea.

In the long run, it will save you a lot of money because it’s a lot more affordable to outsource something like this as opposed to hiring someone full-time.

4. Data Entry Services

Many businesses have been able to become more efficient and save a lot of money by outsourcing their data entry services to a country that has a lower standard of living. The Philippines has a lot of outsourcing companies that will do data entry work for a fraction of the cost of what you’d pay an individual in first-world countries. If you want your business to be more efficient and save money, consider outsourcing your data entry to a company in the Philippines!

While you can find data entry vendors in any outsourcing market in the world, the Philippines is the best location in terms of price, quality, and skilled workers ready to help you finish your project.

Just be sure to still do a little research to make sure you’re going to a reputable company.

RELATED: 12 Tips to Ensure Accurate Data Entry

6 Main Reasons Why BPO is the Fastest Growing Industry in the Philippines

BPO Industry is the fastest growing industry in the Philippines. It’s because of the many advantages it has over other industries, including cost efficiency, technology efficiency, and global connectivity. There are five main reasons why BPO is the fastest growing industry in the Philippines.

Manila Philippines
Manila, Philippines – Manila Skyline. Night view of Makati, the business district of Metro Manila

1. Huge Pool of High-quality Talent

The Philippines has a population of about 111 million people. The Manila area alone is home to about 14 million people, which is almost 12% of the population. A large proportion of the population is under the age of 30 so they are eager and willing to learn new things and work hard.

The Philippines can offer low-cost, high-quality talent due to the country’s high literacy rate and large English-speaking population. This makes it easy for BPO companies to hire workers with excellent communication skills.

2. English Proficiency

The Philippines has one of the highest literacy rates in Southeast Asia and English is widely spoken, which means that it is easier for out-of-country companies to find high-quality talent. This also means that English-language customer service is available to companies in the Philippines.

Over the past decade, more Filipinos received their English education, were trained in English, and even had more chances to use the English language. A lot of Filipinos are able to communicate clearly in English or even use it in their career path. This has helped more Filipinos get jobs abroad and in the BPO industry.

3. Competitive Pricing

Outsourcing has become a necessity for many businesses and corporations around the world. This may be because the costs to do business in other countries are much cheaper than in Western countries. Not only is labor cheaper, but it’s also because there is greater availability of skilled labor and a larger workforce. There is less competition and no shortage of willing workers. 

Businesses are now outsourcing more and more of their businesses to the Philippines. It’s one of the most affordable outsourcing destinations in the world. The low cost of living and high level of education in the country makes it a prime outsourcing destination.

Other countries outside the Philippines offer outsourcing services but the price is usually more expensive. 

4. Compatible Culture

One of the reasons BPO is so popular in the Philippines is because of its friendly and cooperative culture. In the Philippines, people typically have a strong culture of being hospitable to visitors, which makes the Philippines a very easy place for foreigners to learn how to work with other people in a foreign culture. This makes it an attractive location for BPO companies because the employees are more inclined to work with people from other countries without any language barrier.

The culture of the Philippines is also one that values hard work and education, which are two important traits that make Filipino BPO employees highly sought after by international companies. BPO employees in the Philippines are typically friendly, with a big smile and a willingness to go the extra mile to help a client with a support issue. The cultural compatibility with the Philippines makes it an attractive location for BPO companies.

5. Strong Government Support

The Philippines has seen growth in the BPO industry because of its favorable tax laws, the government’s support for this growing industry, and foreign investors also being able to receive incentive programs.

BPO is one of the largest contributors to the Philippine economy, surpassing other industries. The Philippine government has supported BPO since it started in the 1990s, when they assured the industry would be stable and prosperous. This support from the government is a result of the flow-on effects to other parts of the economy, which is one of the reasons why BPO is such a booming industry in this country.

The Philippines BPO industry is not only supported by the government but also has relevant government policies and financing programs that can help small and medium scale enterprises succeed in it. What’s more, BPO is one of the few industries where the Philippines is a leader globally. With over 50% of the world’s call center volume, the Philippines has earned a name for itself as a top destination for outsourcing customer service. 

As the fastest-growing major industry in the Philippines, the country is always on the lookout for ways to ensure that everyone can compete and thrive in this booming industry.

6. Great Infrastructure

There is a very modern and well-connected infrastructure in the Philippines. They have been able to advance their telecoms and Internet infrastructure at a very fast pace and BPO companies in the country have greatly invested in their infrastructure with redundancies in place.

The steady flow of investments into the country is due to the great infrastructure that the government has put into place. It is one of the many reasons why many international businesses have chosen to have their offices here.

The Future of the Philippines BPO Industry: Challenges and Opportunities

BPO Employee

The Philippines is becoming one of the major hubs for BPO in Asia. This has been made possible due to their well-connected infrastructure and their ability to advance at a fast pace. The workforce is also a major factor, as they are intelligent and hardworking.

In the future, the Philippines is poised to become a global leader in the BPO industry. Numerous government initiatives have been implemented in order to foster the growth of the industry and attract even more foreign investors to the country. As a result, a large percentage of the BPO industry’s manpower consists of educated, English-speaking locals.

 The Ongoing Industry Challenges

Indeed, the Philippines has long been a reliable source of high-quality work for BPO companies, but the industry is facing many hurdles. One of the most notable setbacks is the rise of automation. 

A recent article in Forbes Asia points to a rapid rise in the use of artificial intelligence and machine learning as the next major driver of workplace automation and job loss.

The Philippines’ BPO industry, which has experienced an annual growth rate of 7% to 11% over the past decade, is highly susceptible to future disruption. 

According to a recent blog post by Clare O’Connor in Business Insider,

The global BPO industry is in trouble and the Philippines is in its line of fire.

Businesses across the world are rapidly embracing chatbots and automation, and that has created new problems for the Philippines’s burgeoning BPO industry. As the cycle of industry disruption continues, it has become clear that this shift in technology has added to the Philippines’s issue with the decades-long shift to a service economy.

These problems have been well-documented and require a collaborative effort from the government and private sector to achieve a solution. 

How to Prepare for the Future

The Philippines faces a lot of challenges with automation. According to Asian Development Bank, It’s predicted that by 2030, about a quarter million people will be displaced by robots and similar technologies. A lot of people are concerned about the potential impact on the job market.

That’s why it’s important for many people, especially those with lower skill sets, to invest in educating themselves to stay relevant in society.

It’s a chance to develop new skills to meet the technological demands of the working field. It’s also a chance to notice the opportunity in technological advances. It’s a win-win scenario that Filipinos should embrace wholeheartedly.

Filipinos need to sharpen their skills or learn new skills to survive the age of automation. If most of them are not able to learn how to do something, they might lose their jobs to people who are more tech-savvy. 

The Philippines has seen a lot of growth in the BPO industry, but with the rise of AI and machine learning the future of the Philippines BPO industry is uncertain. In response to this business evolution, BPO firms in the Philippines must rethink how they market, where they invest, and how they transfer their knowledge.

It will be important for BPO companies in the Philippines to invest in data analytics, automation, and new technologies in order to stay competitive. In order to be an international leader in the BPO industry in the future, the Philippines must lean into technology and upskill its workforce.

What the Future Has in Store for the BPO Sector

Philippines’ BPO industry is growing at a rapid rate, with IT and outsourcing giants like TCS, Infosys, etc choosing the country as their preferred BPO destination. A recent global report released by KPMG estimated that the Philippines BPO industry will grow by 20-50% from 2020 to 2025.

The government has been making concerted efforts to support the country’s BPO industry which has helped boost the Philippines as the world’s leading destination for call centers, and the country has emerged as the BPO hub of South East Asia, which is now a sought-after destination for international companies to set up their call centers.

In fact, many companies have reportedly transferred their call centers from countries like India to the Philippines, resulting in a huge upswing in employment in the Philippines.

The country is rated as the number one job market in Asia, and this rise in employment prospects is also credited with encouraging companies other than IT and outsourcing companies to set up BPOs in the country.

Frequently Asked Questions

Who regulates BPO in the Philippines?

There is no regulatory agency in the Philippines that specifically deals with BPOs. However, this does not necessarily mean that there is no regulation at all. The BPO industry in the Philippines is regulated by the Philippine government itself. For example, there are rules and regulations to protect the rights of its employees. The working conditions in the BPO sector are regulated by the Department of Labor and Employment (DOLE).

Like any other business, BPOs in the Philippines are should be registered and regulated by the Securities and Exchange Commission (SEC) if they are a corporation and the Department of Trade and Industry (DTI) if it is a sole proprietorship. If the BPO is located in an Economic Zone then they will also be under the scope of the Philippine Economic Zone Authority (PEZA) which is the government agency that regulates all PEZA business parks.

Who introduced the first BPO/Call Center in the Philippines?

Frank Holz is a key figure who helped foster the local IT-BPO industry when in 1992, together with Accenture he initiated the establishment of the company’s Global Resource Center in Manila. Ever since then, his work has been essential in making Accenture a pioneer in the industry. Holz worked with the Philippines government to create policies that would spur the IT and Service outsourcing industry in the country.

Jim Franke and Derek Holley, former employees at McKinsey and Company founded eTelecare, which was popularly known as the first call center in the country in 1999. By the turn of the century, it had become one of the largest IT-BPO companies in the Philippines before being bought out by Stream Global Services in 2009. In 2014, Stream Global merged with Convergys, a move that helped them become a global leader for outsourced business services.

How big is the BPO industry in the Philippines?

BPO is one of the fastest-growing industries in the Philippines which is expected to reach $29 billion by the end of 2022. The BPO industry is one of the largest industries in the Philippines. It is also one of the largest providers of employment. It is estimated that there were over 1.3 million people employed within the IT-BPO industry and this number is expected to double in the next 5 years.

Digital Minds BPO – One of the leading Business Process Outsourcing Provider in the Philippines

With a sound business environment and strong opportunities afforded by an economy that is poised to grow at one of the highest rates in Asia, as well as all the other attractive benefits like lower tax rates, investor support, and a government that is growing increasingly pro-business, The Philippines has become the most popular offshore destination for BPO companies. The country’s highly skilled English-speaking workforce, steady infrastructure, and vibrant economy make it an ideal destination for foreign outsourcers.

Digital Minds BPO is one of the fastest-growing Business Process Outsourcing (BPO) providers in the country. We have been operating in the Philippines since 2010 and in that time we have helped hundreds of companies reduce their operating costs and improve their customer service. We offer a range of services designed to help companies achieve their business goals. Whether you’re looking to outsource customer service, data entry, or full-scale call center operations we can help. We provide a complete customer service outsourcing solution, including recruitment and training of staff, and ongoing management and support. We can help you to determine how outsourcing can help your business and we’ll work with you to develop a solution that meets your requirements.

Contact us now to outsource BPO to the Philippines.

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