Making the decision to outsource some of your business processes to another country can be a big deal for some, especially with the cost involved and time spent. So before you make that commitment, here are a few questions to ask yourself to guide youIs the Philippine BPO industry ready to accommodate more outsourcing companies and clients in the coming years?
Insiders and analysts all share a positive outlook for Philippine BPO industry. One such expert is Danilo Reyes, chair of the IT and Business Process Association of the Philippines (IBPAP), who spoke of the expected growth of the sector in the next year.
The Philippine IT-BPO sector is still in the right path to achieving the major goals we have established
Speaking at this year’s Asia BPO Summit, Reyes beams “Suffice to say that even with the challenges we face, the Philippine IT-BPO sector is still in the right path to achieving the major goals we have established, which was to hit $25 billion in revenue and reach 1.3 million in employment level by 2016.”
Positive statements from industry leaders bode well for the future of the sector.Why locate your offshore activities to the Philippines?
Business Process Outsourcing (BPO) has been a steady source of growth for the Philippine economy. What makes this even more exciting is that the future looks promising enough that the industry can accommodate more clients and outsourcing companies in the coming years.
The Philippines is a great destination for outsourcing/ offshoring activities because of its steady supply of competent workers, and the government support that the industry receives.What makes the Philippine BPO worker unique and appealing to outsourcing companies?
The Philippine workforce is a young and growing population, with 480,000 graduates from tertiary institutions entering the market annually. Thus, many entrants into the industry have already completed some form of formal education in the BPO sectors they wish to engage in. These include some training in IT (for IT systems workers), healthcare services (for medical transcription workers), and fine arts or advertising (for animation and game development workers).
Aside from this, Filipinos are known for their strong customer service orientation, which makes them the best suited for these outsourced functions.
Filipinos are known for their strong customer service orientation
In addition, Most Filipinos can speak English with a neutral accent. This makes it easier for Filipino BPO workers to converse with their customers, who are usually from countries such as the US and UK.How much are the typical salary ranges for Filipino BPO professionals?
The low cost of living in the Philippines has allowed BPO clients and companies to enjoy relatively lower salary costs. For example, a Financial Analyst, fresh off college, can be hired at a USD $4,000 annual salary. Similarly, an IT/ Oracle Support Analyst with some college experience, can be hired at USD $8,000 annual salary.What has the Philippine Government done to support the BPO industry?
The Philippine Government has laid down the foundation that makes it appealing for BPO companies to choose the country as their destination of choice. The 2011 Investment Priorities Plan provides fiscal and non-fiscal incentives to IT/BPO services. These include tax holidays for IT Park/ Eco-zone companies, and exemption from certain duties, taxes and fees, among many others. Sources: