In the old times, most businesses used to conduct all their major functions through an in-house department or service provider. However, with the recession hurting the pockets of many corporations and medium-sized firms, many have begun transferring some of their “non-core” functions to third-party providers. Today, the concept of outsourcing has spread like wildfire among companies in the developed world; hence the birth of the term BPO, or business process outsourcing. Here’s a quick look at how outsourcing can help a company cut costs, and increase productivity at the same time.
The Benefits of Outsourcing
Business process outsourcing offers a wide array of benefits to overseas companies. It allows them to transfer some of their non-core company processes to external providers, who are often referred to as BPO firms. Many companies based in countries like the US, Canada, Australia and Europe have now outsourced a number of their core and none-core operations to countries like India, the Philippines and China, where labor costs are low, and there’s a large supply of talent. These countries are known for providing, and maintaining, good-quality output, and are preferred because they easily conform to strict international standards.
The Services Offered By BPO Companies
Business processing outsourcing firms offer a wide array of services. They provide software development, animation and content development, technical support and customer service, medical and legal transcription, finance, logistics, accounting, account management, accounts receivable collection, insurance claims processing, engineering and design, payroll processing, human resource, financial analysis and auditing, data processing and other essential back-office functions.
IT Outsourcing Philippines – The Advantages And Perks
The Philippines ranks high when it comes to the realm of business process outsourcing. The country currently ranks in the top 3 preferred global outsourcing destinations, which include India, China and others. The company consistently ranks as a favorite outsourcing destination because it has a large volume of English speakers, and it also churns out a large number of college graduates annually, who are proficient in information technology, business, accounting, and other skills. The country also is also seen as a better alternative to India because it offers more affordable operational costs.
Outsource Philippines has steadfastly clung to its reputation as one of the top business process outsourcing destinations in the planet. The country’s BPO industry has risen by 46 percent yearly, and the boom is mostly driven by the establishment of offshore call centers. According to the country’s Board of Investments, the BPO output for 2008 alone was a whopping $6.1 billion. In 2009, the nation’s BPO sector was forecasted to rake in from $7.2 to $7.5 billion in revenues. The IT outsourcing Philippines sector is expected to earn as much as $11 to $13 billion in 2010, and employ an additional 900,000 people.
To sustain the growth of the Philippine outsourcing industry, the government has offered a wide variety of fiscal and non-fiscal incentives to attract more foreign direct investments. The Board of Investments has also drafted an Investment Priority Plan, which focuses on the further development of the BPO sector, and other major industries.