Outsourcing has become a widespread corporate practice due to a number of reasons. Globalization and economic recessions has pushed American and European companies to find ways that help reduce expenses such as manufacturing and assembly done abroad, where the standards of living are much lower. Another reason why companies outsource is the need for companies to concentrate on their core business. Outsourcing helps a lot of company owners spend less time on clerical jobs.
Business process outsourcing (BPO) is a form of outsourcing wherein a company would contact a third-party service provider for additional workforce. It is a booming industry in the Philippines since 2006. The most common types of BPO services are accounting, animation, call centers, encoding, human resources, software development, and legal & medical transcription.
In spite of the political instability and less developed IT and networking infrastructure, there are solid reasons as to why foreign investors set their eyes on the Philippine BPO market. It is currently racing against India for revenues and job vacancies. New service sectors are opening up for the following reasons:
Fresh university graduates and even undergraduates used to have difficulties in entering the job market due to lack of work experience. BPO companies place less emphasis on this along with scholastic standing and focus more on the skills necessary for the positions offered.
Filipinos regard education as a necessity. It is no surprise that 93.4% of the population is literate. As of March 2009, approximately 20 million Filipinos (22% ) are online. It is expected that the number will increase by 10% every year. These statistics make it easy for BPO companies in finding computer savvy employees who are right for the job. There’s an increase efficiency for tasks that require expertise.
A leading online measurement service has declared that Filipinos are the most engaged in social networking online. This means that Filipino workers are very much adept at the inner workings of social media sites, which is useful for online marketing.
The Philippines is the third largest English-speaking country in the world.
A lot of Filipinos can understand American movies and TV shows even without subtitles. This gives them an edge over their overseas counterparts when it comes to customer support services.
The time zone of the Philippines poses as an advantage to a lot of American and/or Western companies. If it’s night in the USA, it’s day in the Philippines. This means you can get a lot of things done by your hired agent while you’re asleep!