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Business Process Outsourcing: Spreading Its Roots

Jenny Cagadas, Hubport Group
Wednesday, November 11, 2009

Outsourcing has long been practiced, mainly by manufacturing companies, to maximize investments in production. Several countries in the Asia-Pacific region have overseen this activity for some time now; aiding textile, electronics and apparel brands in the creation of their products. This industry has served as a watering hole for multinational companies in need of a refreshing boost in their productivity and revenue. But recently, in reflection of the world’s current financial condition, business process outsourcing has proven to be the most convenient and practical business approach for emerging and established businesses; whether or not they are connected with manufacturing.

Business process outsourcing services gives foreign companies access to manpower coming from developing countries, which are afforded at a more budget-friendly rate. This way, they can get the same number of employees working on a particular project, and elicit the same amount and quality of output, but pay less than they would for hiring manpower locally. Aside from this, BPO also frees companies from excess expenditures in term of scouting, training and providing equipments for newly hired employees.

A multitude of companies have made significant waves in their productivity and income because of BPO. However, the affordable quality of outsourced services is pretty much what keeps foreign companies flocking BPO providers like India.

Given that it has the second-largest population of IT specialists; it’s not really off hand to find this country collecting some of the biggest IT clients today - IBM, Intel, Microsoft, Oracle, Cisco, Sun, HP, and Alcatel. Every year, India produces about 120,000 new IT graduates, looking to serve overseas clients. With an abundance of highly competent workers, India is also trusted with the most number of IT-related accounts, including ecommerce website development.

However, the Philippines is now closing in on this business process outsourcing titan with a surging number of investors, mainly requesting IT related business process outsourcing services. Rising from the shadow of competition, this country not only boasts of siring skilled and proficient IT professionals, it is also proud to claim that it is the world’s second-largest English-speaking country.

The Philippines has a very high literacy rate and produces competitive IT talents. Yearly, it welcomes about three million graduates, which flood the BPO sector. In addition to this, the country also houses top-class IT infrastructures, which can ably serve IT outsourcing commissions, from search engine optimization to ecommerce website design and development. This is what makes the Philippines a bankable provider of IT solution services. Though India’s experience and prevailing dominance is something the Philippines is yet to live up to; there is no wonder that it can ably rival the BPO leviathan in terms of skill and able manpower.

As much as the country has effectively answered the substantial demand for outsourced customer service assistance in the past; there is also great confidence that it can ably accommodate as much IT commissions thrown its way. Ranking third as a business process outsourcing provider, investors can feel confident about the life and end of their business ventures with Philippine outsourcing firms.

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