How Does COVID-19 Challenge the BPO Industry in the Philippines?
The Business Process Outsourcing sector has been impacted by the pandemic. Read on as we look at the impact of COVID-19 on the BPO industry in the Philippines.
The world today is far different than the business world we are used to living and working in. You now have to deal with working a world to sustain you, your family, and/or your business. The COVID19 pandemic has affected all these sectors globally, and in the Philippines. There has been a paradigm shift in business and part of that has impacted the Business Process Outsourcing (BPO) industry.
Contact center agents are front and center and operating out of various and different remote locations. They answer calls every day that often runs into the millions. These calls are coming in from international and national companies and deal with shut-downs and disrupted supply chains and workforces.
Previous to COVID19, the BPO industry had long accepted business norms that defined business process opportunities. Read on to learn more about the impact COVID19 has had in the Philippines BPO industry as well as the challenges being faced every day in that sector.
What is Business Processing Outsourcing (BPO) in the Philippines?
More and more global businesses are beginning to outsource jobs. Many businesses are trying to determine if the Philippines is the best location to outsource and what benefits come with using the BPO sector for their customer service needs? Before COVID19, the Philippines ranked as seventh as one of the top countries to utilize for a company's BPO needs.
Everything from managing customer accounts, initiating customer engagement, creating remote sales jobs, and providing remote customer service is being considered by major global corporations. BPO refers to a company process whereby the company refers non-core functions to a third-party service provider through a subcontractor. Many major corporations are hiring companies in the Philippines to perform some of their core business process in customer service and human resources.
The Benefits of Using a Subcontractor in the Philippines for Your BPO Needs
The benefits companies receive from using a subcontractor is tenfold. These benefits include but aren't limited to:
Allows business to concentrate on strategies that will help them grow and develop
Provides a way for businesses to obtain operational excellence at reasonable subcontracting rates
Gives business an opportunity to create a new way forward to sustain their earning momentum
Finally, it gives companies a way to stabilize their work situation so they can deal with lost sales quotas. That way, the company can come up with new ways to maximize its profitability.
Philippines BPO Industry
Every company has to start at the beginning in this changing business world, and if you want to create a BPO subcontractor opportunity, there are some steps you need to do. These steps include what you should do, how you should begin, and how to select the right BPO company service provider. You also want to ensure you get the best subcontractor in the market.
The changes being seen in the BPO industry are in what's called the digital inflection point. The digital inflection point is where their B2C sales operations and customer service begins. Even before COVID19, the Philippines had a BPO industry that made in the billions.
In 2020 it's projected that BPO will grow even more than projected before COVID19. Right now, it's projected to double in size and scope of business permeation. This growth is due in part because of Filipino's professional worker's business and work ethics.
BPO Industry in the Philippines
There are over 1.2 million BPO employees, and many of those employees are working for American companies. In fact, over 60% of the BPO industry is made up of American companies. Australia follows the United States, and Britain is third.
In part, this is due to the Special Economic Zone Act, which established the Philippine Economic Zone Authority. The Act provides lower area requirements for developmental and tax incentive benefits. This attracted a host of foreign investors and companies.
Innovative Ways to Provide BPO Services in the Philippines
Most of the time, that's because most professional BPO workers in the Philippines are fluent in English. Many of these workers also have skills working in back-office services or contract centers. Since the COVID19 pandemic, there has been substantial growth and development in multilingual services workers being utilized.
Many companies and BPO professionals are asking themselves questions that will help them find answers to how best they can provide sales, services, and customer relations in innovative ways. The BPO industry in the Philippines is also uniquely able to provide new working arrangements like working in remote stations. They are also able to work across business functions.
A Flexible Philippines BPO Industry
The Philippines is known for its contractor's flexibility in the BPO industry service and scope of work. What's more, the Filipino BPO industry is resilient and a sound and viable business continuity plan. It is the very business process that outsources noncritical functions that allow companies to use their internal resources on core competencies.
These essential business functions make companies flexible in developing and growing in the changing markets in 2020. Everything from IT, remote work locations, how retail businesses operate, and more is changing on an almost daily basis. For instance, BPO call center companies in the Philippines are facing challenges that were brought on by the COVID19 pandemic.
Uniquely, they have been able to ensure the major global companies and small businesses can spend their time and effort in learning how to make themselves noticeable in this new marketplace dimension. The BPO in the Philippines is also leading the way in providing a more diverse BPO professional that has various skills and specialties.
The BPO Industry and Solution Providers in the Philippines
The BPO industry in the Philippines has become solution providers in various company projects and departments. BPO subcontractors and being selected that provide:
Quality Monitoring
Human Resources
IT Professionals
Workforce Management
Call Centers Solutions
Sales Department
Customer Service, and more
If a company can conceptualize it, then a BPO subcontractor can implement it. Outsourcing makes it even easier to hire a specialized company candidate you need. It's also more cost-efficient.
BPOs in The Philippines Global Reach
The Philippines BPO industry is now receiving a more global presence that helps them enhance and grow their skill sets, experience, and knowledge-base. Most of the time, in the Philippines, you have three categories of BPO services that are being subcontracted.
The Three Main Categories of BPOs in the Philippines
The three main categories of BPO skillsets hired in the Philippines are:
Knowledge Process Outsourcing or what's known as KPO. KPO means a company will hire a subcontractor to provide a knowledge-based specialization and expertise. Many times KPO is within the IT industry as that is a very specialized and unilateral profession.
The legal process outsources, also known as LPO. LPO is part of the KPO industry, but it specializes in legal services. Many of BPO's providers are hired for performing legal research, typing legal documents, providing legal advice, and other ancillary legal functions.
Research process outsourcing is also known as RPO, which is also a subset of KPO. But RPO provides the research and analysis function of KPO functions. Much of the time, companies that need to outsource these skill sets are in biotech, marketing, investment agencies, and more.
There's no question you need to evaluate both the subcontractor's knowledge base and experience when you're hiring a BPO in the Philippines. But that is a common standard you use no matter where you're working or what positions you need to fill. It's essential to choose the one that fits our needs the best at a cost you find reasonable.
How is COVID19 Affecting ITBPAP Roadmap 2022?
The IT and Business Process Association of the Philippines (ITBPAP) is the official association for the information technology and business process management industry. ITBPAP has been providing director for information and advocacy for the IT industries since 2004. ITBPAP is just one of the many ways the IT-BPM business sectors are growing, developing, and sustaining itself in the Philippines.
Currently, the Philippines has considerable potential to grow even further than projected by the ITBPAP Roadmap 2022. In part, this is due to the global need for BPO service since the COVID19 pandemic impacted business across the board. It is now projected there will be further growth and development in BPO technology platforms as well as vertical specializations.
The Way Forward for the BPO Industry in The Philippines
When you want to ramp up your outsourcing volume or start an outsourcing service for the first time, reach out to SIBS Contact Center. All you have to do is to let them know what industry you're in and what professional services you need. SIBS Contact Center has the experts that can provide you with the solutions and options you need to realize your project.
Every idea you have or goal you want to obtain SIBS Contract Center can help you get there. But you have to take the first step yourself by calling or clicking over to them now. SIBS Contract Center has the right people, tools, and applications to find all the pieces you need to bring your business visions to life.
