Companies that outsource to the Philippines have been rapidly increasing over the years.
The pandemic era’s top video conferencing platform, Zoom, has joined the ranks of leading companies that leveraged the power of Philippine outsourcing.
Zoom is one of many new contracts won by the Philippine BPO industry during the pandemic, which allowed the $26.7 billion industry to grow despite a global recession.
Read on to find out why global companies prefer to outsource their business functions to the Philippines and why you should too.
Why do international companies outsource to the Philippines?
The Philippines has been the top outsourcing destination for international companies seeking low-cost yet high-quality labor services. Here are compelling reasons why global companies choose the Philippines as their outsourcing partner:
- The Philippines has a large pool of highly educated and English-speaking workers. It makes the country an attractive destination for companies that need workers with specialized skills and language fluency.
- The wage rates in the Philippines are generally lower than in other countries, which helps companies save on labor costs and increase their revenue.
- The Philippines has a strong and stable economy, with a well-established legal system that protects the rights of workers and businesses. This provides companies with a high level of confidence to invest in the country’s workforce.
- The Philippines has a strategic location in the Asia Pacific region, which makes it an ideal location for companies that need to serve customers in the region.
- The government of the Philippines has implemented policies and initiatives that support the growth of the BPO industry. One is to provide incentives such as tax deductions for foreign companies to outsource to the country.
- Filipino employees have the best work ethics in the world. They are known for their hospitality, service-oriented attitude, empathy, and patience, which are necessary for customer service.
- Filipino customer support agents can work across different time zones. This makes them a perfect extension for companies seeking after-hours support for their customer service.
- The Philippines has a world-class data security and privacy structure, especially at the enterprise level. Several laws have been passed to protect confidential information from data breaches and theft.
How many companies have outsourced to the Philippines?
Since its inception in 1992, the Philippine BPO industry has partnered with over thousands of businesses ranging from small and medium enterprises to top global brands. In the last decade, here are some of the multinational companies that have outsourced to the Philippines:
- AXA Insurance
- Wells Fargo
- UnitedHealth Group
- Wyndham Destinations
- American Express
What are services that are often outsourced to the Philippines?
Over the years, the Philippines has been known for being the world’s top outsourcing service provider for voice-related services. As the country’s outsourcing industry continues to grow, it added highly specialized services. Here’s a complete list of services you can outsource to the Philippines:
Product information management (PIM)
- Bookkeeping and accounting
- Accounts receivable/payable management
- Financial planning and analysis
Human resources (HR)
- Payroll administration
- Compliance management
- Litigation support
- Intellectual property services
- Legal research and analysis
- Medical claims processing
- Medical transcription
- Medical appointment setting
- Social media management
- Search engine optimization
- Content writing
- Email marketing
- Pay-per-click advertising
- Back-end development
- Front-end design
- Web optimization
- Bookings and reservations
- Cancellations/refunds management
- Customer billing
Which industries do the most outsourcing?
By the end of 2022, the global BPO industry will be worth an estimated $164.7 billion. This is due to a growing number of companies across various industries that have outsourced at the onset of the pandemic. Here are the top industries that have outsourced the most in the last few years:
When the pandemic happened, a lot of customers shifted to online shopping. In fact, Ecommerce sales increased by $244.2 billion or 43% in 2020. To address the surge in customer orders, online retailers started outsourcing. It helps them scale up their Ecommerce workforce while minimizing their overhead costs by offshoring to a low-cost country like the Philippines.
Retail companies that outsource focus on order taking & processing, product catalog management, and technical support to optimize customer order fulfillment.
Today’s real estate industry involves a lot of business functions. Some functions generate higher ROI, while others are low margins. In addition, administrative tasks like performing property research reports are very time-consuming. That’s why real estate agencies choose to outsource to focus on building relationships with customers.
Some of the most commonly outsourced real estate services include mortgage processing, billing and collections, and data management.
The tourism industry has been dependent on the BPO sector to create memorable customer experiences. The market for BPO services in the travel and hospitality industry has grown significantly in recent years. It registered a 10-12% increase in revenue growth, reaching a value of between 4.5 and 5.0 billion US dollars.
Contact center services remain at the forefront of the industry, focusing on multilingual customer support, airline & hotel bookings and reservations, and travel consulting.
The demand for outsourcing among telecom companies has been increasing because of the rapid pace of updates in networks and services. According to a report by Market Research Future, the global telecom outsourcing market is still expected to grow at a rate of 4.3% per year until 2023.
Telecom companies that outsource their customer and technical support can reduce labor costs and devote more funds to product development.
It is well known that the insurance industry suffered significant declines in profitability between mid-2019 and mid-2020. The industry growth slowed to approximately 1.2 percent in 2020. To get back on its feet, the industry started outsourcing to build better efficiencies and internal capability.
Some of the most commonly outsourced services in the industry include data entry, claims processing, and bookkeeping.
Build the best offshore in the Philippines
International companies that outsource to the Philippines can experience massive operational efficiency, profitability, and human capital growth. Partner with a reliable outsourcing service provider in the Philippines and achieve all your business objectives at a low cost.
ManilaPros, a Philippine-based outsourcing company, is an ideal partner for businesses seeking scalable staffing solutions in response to their growth and market conditions. We help international companies build the perfect extension of their team in the Philippines.
We provide a flat-rate service fee for customer support, creative design, and product information management. And the best part is it comes with backup support and a dedicated account manager free of charge.