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How the Philippines Won in the Battle of the BPO Giants

Posted on February 19, 2014

The present economic situation has prompted many businesses and corporations to look for a more costs-effective ways of getting things done at the minimum amount of time. As competition gets fiercer, the need to have an edge over others have become a primary need of many firms.

Offshore outsourcing has given them that edge and a lot more. By allowing these companies to utilize highly skilled manpower with the right expertise at a competitive price, they have not only cut costs but have also increased output by two-fold, compared to relying only on the in-house staff with little experience in the area. This then translates to more revenue for the client firm.

Asia has been the prime destination for offshore outsourcing for the last couple of years. The prospect of lower taxes and labor costs have made this continent a massive hub for BPO providers. But eventually, the Asian BPO sector has become a battle between two offshore outsourcing giants: India and the Philippines.

Basing on demographics, India has more advantage over the Philippines, with more than four million Indians between the ages 25-54, compared to the 38 million population of the same age range in the Philippines.

However, demographics alone did not help India win the battle. Ultimately, by 2012, the Philippines has outranked India as the top BPO destination in the world.

So what has contributed to the success of the Philippines in the BPO industry?

The Filipino’s affinity to the American culture and its strong omnipresence in the country has made it easy for them to relate with their foreign clients, thus minimizing communication gaps and the resulting breakdown of business relationships.

The BPO industry in the Phililppines also enjoy impressive support from the government, compared to India. Key legislations have been passed to protect the BPO industry in the country as well as their client firms, such as the Data Privacy Act. In addition, the massive support the industry has received from the Philippine government has led to the creation of better infrastructures and eventually, its expansion to other key locations, such as Davao and Cebu.

Add to that, its people’s warm hospitality and working attitude has contributed to the Philippines’ victory in the battle for the best BPO destination.

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