The Philippines: Best Outsourcing Destination
Author: Cheris Vargas

It has now been several years since the initial application of outsourcing in different industries has occurred. And as the results show, outsourcing has indeed become a global phenomenon through the years. BPO is practiced to hand over a specific business function to a third-party organization; essentially aiming to achieve division of labor. The typical business functions that are outsourced include human resource, information technology, finance, which are classed as back office outsourcing, as well as customer support, and call center functions, which belong to front office outsourcing. Outsourcing can either be offshore outsourcing, wherein outsourcing is contracted outside an organization's country; or nearshore outsourcing, which involves a contract with a company based in a neighboring country. Business process outsourcing (BPO) is just basically a type of outsourcing involving the hand over of operations and responsibilities of a particular business process to an outsourcing company. And this industry has been described to be one of the rapidly expanding industries around the globe. And predictably, the Philippines is currently regarded as a fast-growing BPO service provider.

The Philippines as BPO service provider provide outsourcing services in the field of information technology, finance, medical transcription as well as architecture and engineering-related services. With an extensive background and positive reputation, BPO jobs in Philippines are very much sought after by foreign conglomerates. It has been estimated that BPO in the Philippines has been increasing 46% yearly since the year 2006. This has resulted in the significant augmentations in the demand for BPO jobs in Philippines. By this year, it has been predicted that the BPO industry will reach a profit of US $11 billion which will make way for 900,000 BPO jobs. In the Philippines, BPO service provider locations are usually based in First Tier cities in Metro Manila and Cebu and in regional areas including Davao City, Bacolod City, Dumaguete City, Iloilo City, etc.

The call center industry in the Philippines is the biggest contributor to the growth of BPO in this country. The Philippines has become a primary choice for a BPO service provider especially in the call center industry mainly because the operational and labor costs are fairly inexpensive. Furthermore, the Philippines is well-regarded as an English-speaking country. As such, BPO's main businesses mainly involves call centers that cater to all sorts of customer relation services including technical support, customer care, travel services and financial services.

However, the medical transcription field has also experienced a promising growth in the past years. In the Philippines, BPO service providers provide manpower that create chart notes, discharge summaries, medical reports as well as hospital reports with the use of sophisticated softwares and equipments. At the moment, plans to improve the country's capabilities in the area of medical transcription are being discussed including the acquisition of certification for each company's services.

Another fast growing industry that employs Philippine BPO as a BPO service provider is software and web development. Web design, software development, and animation are all included in this industry. In the recent years, there is an increase in popularity of animation as a form of entertainment medium for TV, movies as well as computer games. And among those that are contracted, animators from the Philippines have been reported to do well in the animation circuit. Unsurprisingly, scenes from films such as Finding Nemo and Anastasia include works produced by Filipino animators.

The Philippines is a top BPO destination and in fact, in 2009, the Philippines was awarded by the UK's National Outsourcing Association the Best Offshoring Destination of the Year Award. If anything, this proves how excellent the country is as a BPO service provider.