BPO - Business Process Outsourcing
"Know what the Philippines has to offer as a destination for Outsourcing."
The Philippines was named as the "Best Offshoring Destination of the Year" for 2009 by UK's National Outsourcing Association. This is the second time that the country received the award – the first was two years ago.
The Philippine BPO industry has grown to a US$6.8 billion market. Its rapid growth is among others owed to its recent leverage of higher end services such as Accounting, Legal and Medical transcriptions, and Creative Design.
Here are the factors that have made the Philippines a growing favorite as an offshoring destination:
Low cost
The daily minimum wage in the Philippines is approximately $8. There are graduates from its top universities being hired for $300 a month. These costs apply to all other business expenses such as office rental, utilities, office supplies, and third party services. Outsourcing is an excellent cost-cutting measure. In fact, US companies save 50-70% in costs when they outsource to the country.
Educated workforce
The Philippines' internationally commended universities produce up to 500,000 graduates a year. The Philippines is ranked number one for availability in KPO (Knowledge Process Outsourcing) jobs.
English language proficiency
English speakers make up 75% of the Philippines' population and, as a former American and Spanish colony, is steeped in Western culture; an indication that Filipinos think in English as well as speak it.
Customer service character
Of the 450,000 BPO workers in the Philippines, over half work in contact centers. Filipinos share a reputation for being hospitable and warm. All major North American contact center providers have a presence in the Philippines; as well as multinationals such as Dell, Citibank, AOL, and HSBC.
Solid telecommunication infrastructure
The Philippines was the first nation in Asia to deregulate its telecommunications sector. Its access to advanced telecommunication infrastructure at lower costs is a significant edge amongst other offshore destinations.
Government support
The local government along with the BPAP (Business Process Association of the Philippines) has put in place infrastructure and education development plans to supplement the rapid growth of the BPO sector. The growth of the outsourcing industry has given local work opportunities to the millions of Filipinos that have had to look for work abroad.