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Countries for Outsourcing: Philippines, its Call Center, and More

By Edited May 12, 2014 1 2

America has been steadily outsourcing its business to various countries and the sizeable benefactor has been Asia as most of the countries for outsourcing are located therein. Outsourcing services is a boon for businesses as it saves on time, operating and training costs. Outbound telesales, virtual assistance, and online marketing management are designed to address their various needs. Outsourcing provides a wide array of services to industries such as mortgage, real estate, investor relations, mining, healthcare, telecommunications, retail, banking, manufacturing, I.T. and many more. The outsourcing industry has been a key player for emerging markets in Asia where most BPO companies are located.

The computer technology and the Internet claim a significant share in many industrial and commercial functions in the past several years. Hence, there is little need to be present in the office in carrying out operations and functions. For instance, remote assistants can work on payroll services over the Internet. This had lead to the emergence of countries for outsourcing

Most BPO firms in the Philippines, grouped amongst the top countries for outsourcing, are on phone su

outsourcing in the Philippines
pport services including technical support and customer care. There are more than seven hundred call center companies all over the country, most of which are in cities like Makati and Ortigas. Such companies specialize in customer relations, servicing clients from United States or United Kingdom. Hence, they hire people who are outstandingly fluent in English.

Other business process outsourcing companies include IT support, technical support and data processing. All of these require information technology. Therefore, any firm delivering such services ensures that they have the right resources. When we say resources, we mean facility and equipment as well as highly skilled workforce. This makes it possible to acquire high quality service that is efficient.

As many trusted companies are expanding, there are a few being established each time. This is an indication of the boon seen in this sector. In fact, BPO is a fast growing global industry. It is even more important during this stage of downturn, when economy is stiff and companies need to reduce operational cost. The imminent downturn of the economy globally has necessitated the importance of the countries of outsourcing.

Advantages of Outsourcing in the Philippines

Compared to other countries for outsourcing, Philippines have the following advantages:

1. Affordability. Clients will be paying less for outsourced work as compared to in-house business unit. Filipino workers are significantly more affordable than their U.S. counterparts and they can be retained for a minimal hourly charge.

2. Well established operating environment. The economy of the Philippines has had its share of ups and down but came out strong despite the global recession; all because of its growing outsourcing sector and this has attracted more foreign investors. The advanced I.T. infrastructure is also a big factor why Manila, capital of Philippines is an ideal outsourcing destination.

3. Quality of work. Manila enjoys the benefit of having highly skilled and motivated professionals with industry experience coupled with an outstanding work ethic. Even the level of English is superb. This is strong point for the flourishing business of outsourcing here.

4. Availability. The Philippines has a large populace and substantial population density. Recruitment and maintaining quality Filipino workers is an easy task.

5. Filipino culture. For us, this is a very important factor to consider. The country’s affinity to the western culture is a living proof that Filipinos can blend with any foreign company and easily adapt their culture. With this, we believe that an average Filipino employee can provide seamless customer satisfaction.

Amongst the countries for outsourcing in recent years, the Philippines have been making steady progress but is still behind India.

Issues with Outsourcing in the Philippines

The Philippines is plagued as compared to other countries for outsourcing, inter alia, by the following points and therefore needs to overcome them, if it needs to march ahead:

1. Population. The sheer enormity of India’s talent pool needs to be matched. Shortage in supply of managerial talent is another disadvantage to India’s Asian neighbor – the Philippines.

2. Political risk. Unstable political setup as extremists from the left and the right are up in arms against the present government. Corruption has also tarnished its image.

Philippine outsourcing has not been around in the family of the countries for outsourcing for a long time but it has been a success in the short span since its inception.

Philippine outsourcing is more of customer service relations and IT-based companies among all other countries for outsourcing. There are thousands and thousands of call center agents now dispersed in different cities and companies all over the country and the demand is still heavy as major companies are expanding. In addition, BPO companies that offer SEO, web design, web development, and web content writing are also growing in number.

There is just a lot of foreign demand despite the recession, and this seems due to the reality that more investors are willing to procure services and labor force if they can at lower costs. As they ride out the recession, the plan of going further through outsourcing seems a very viable option.

Many industries and companies in the United States and Europe would still want to maintain top customer relations and this is why they offshore customer relations service to companies in Philippines that offer such services.

On the other hand, they also want to take their businesses farther online and take their market share higher by tapping into the Internet. They are not necessarily basing their businesses on the Internet but they exploit the advantages that this technology can offer. This is why they hire virtual assistants or seek services from SEO firms that are willing to make their company sites more popular on the World Wide Web. The group of nations that constitute the countries for outsourcing would like to see this awareness amongst the outsourcers grow manifold.

Some skeptics are warning the business community about seeming or assumed disadvantages like supposed inefficient work output and loss of personal interaction. Nonetheless, people who have made arrangements with Philippine outsourcing/offshore teams know better.

Several years ago the Philippines was known as an agricultural country and information technology was not a major thing. A decade ago, much of the workforce work overseas. But times brought some changes and one of these changes includes a boon in the IT sector. The explosion in the information technology sector has reached Philippines and not long after that, call centers and technical support companies have flourished in many of its cities. Philippines’ BPO industry began to show the world its strengths recently. This is not surprising because this Southeast Asian country has proved flexibility. Innovations, creativity and flexibility have transformed the country from an agricultural country to a multifaceted one majoring into as one of the countries for outsourcing.

Related article:

Top Ten Countries for Outsourcing: Little Giants in a Global Economy

Other top countries for outsourcing featured:

India

China

Hungary

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Comments

Jun 13, 2012 5:12am
askformore
Thank you for a great article about the 'Outsourcing Market' in the Philippines.
I am convinced that this market will grow (maybe even explode).

The Filipinos have for many years worked abroad (in the US, Europe, and the Middle East) as OFWs.
Outsourcing is even better for all parties.
Working 'abroad' can now be done at home. We will see a new generation of many FWs (foreign workers), and fewer OFWs (overseas foreign workers)
Thumbs up for your article!
Jun 13, 2012 5:47am
WebAddict
I believe so too. Thank you for reading.
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