As the world becomes increasingly globalized, companies are constantly looking for ways to improve their operations and reduce costs.
One way they do this is by outsourcing certain business processes to countries where labor costs are lower. Among these countries, the Philippines stands out as a popular destination for BPOs due to its highly skilled workforce and low cost of living.
The Benefits of BPO in the Philippines
Lower labor costs
One of the main reasons why companies outsource their business processes to the Philippines is because of the country’s low labor costs. According to a report by KPMG, the average salary for a BPO employee in the Philippines is around $800 per month, which is significantly lower than in developed countries such as the United States and Canada. This means that companies can save money on salaries and benefits while still getting high-quality work done.
Highly skilled workforce
Another benefit of BPO in the Philippines is the country’s highly skilled workforce. The Philippines has a large pool of talented individuals with degrees in fields such as business administration, computer science, and engineering. Many of these individuals have also received training from leading universities and institutions, ensuring that they are equipped with the skills necessary to excel in their roles.
Time zone advantage
The Philippines is located in a time zone that is 12 hours ahead of many major cities in North America and Europe. This means that companies can outsource certain processes to the Philippines and still have them completed while they are sleeping. This is particularly useful for tasks such as data entry, where speed is not as critical as accuracy.
Government incentives
The Philippine government has also implemented policies to encourage BPOs to set up shop in the country. For example, the government offers tax incentives and other benefits to companies that invest in BPOs. This makes it more attractive for companies to outsource their processes to the Philippines, as they can save money on taxes while still getting high-quality work done.
The Challenges of BPO in the Philippines
Language barriers
One challenge of BPO in the Philippines is the language barrier. While many Filipinos are fluent in English, not all of them are. This can make it difficult for companies to communicate effectively with their BPO employees and ensure that tasks are completed correctly. To overcome this challenge, companies often provide language training to their employees or hire bilingual staff members.
Cultural differences
Another challenge of BPO in the Philippines is cultural differences. The way business is conducted in the Philippines can be quite different from the way it is conducted in other countries. For example, Filipinos tend to be more hierarchical and deferential than people from other cultures. This can make it difficult for companies to manage their BPO employees effectively and ensure that tasks are completed on time.
Infrastructure issues
Finally, the Philippines can suffer from infrastructure issues, such as power outages and internet connectivity problems. These issues can make it difficult for BPOs to operate efficiently and can lead to delays in completing tasks. To overcome these challenges, companies often invest in backup power generators and other infrastructure improvements.
Real-Life Examples of BPO in the Philippines
Accenture
Accenture is one company that has successfully set up a BPO in the Philippines. The company’s BPO provides a range of services, including software development, analytics, and customer service.