Business process outsourcing is the revolutionary trend of outsourcing in which the operations and responsibilities of entire business functions are assigned to a third party service provider.
The primary benefit of business process outsourcing is greatly increased organizational flexibility. Through BPO, fixed costs that are mostly uncontrollable are converted into very controllable variable costs. Outsourcing also eliminates the need for high initial capital outlay. Therefore the resources that would have been spent on capital investments can now be allotted to operating activities or added to the working capital, thus enhancing financial elasticity. Letting BPO firms to take care of certain business processes for you allows you to focus on a less number of areas. You can now utilize all your key employees towards performing only core functions. BPO also decreases the cycle length of business processes and decreases the turnover time of resources.
The business process outsourcing industry is considered the fastest growing industry in the world today. International investment consultancy firm McKinsey & Company forecasts that the demand for business process outsourcing services will continue to boom up to a total of $180 billon by the year 2010.
Business process outsourcing in the Philippines – Ranking Third in the World
The demand for offshore call centers has provided the biggest boost for the BPO industry in the Philippines. The Philippine BPO industry is currently trailing behind those of India and China but according to recent studies showcases the biggest growth rate in the world. It might not be long until Philippine BPO overtakes BPO India and BPO China as the king of the BPO Mountain. The Philippines posed a huge 62% growth rate in offshore service generating revenues in the past two years (from $1.3 billion in 2004 to $2.1 billion in 2006) and is expected to grow even more. The outsourcing industry in the Philippines is expected to grow to a colossal $11 billion dollars in 2010. That is a projected growth of more than 400% in four years.
Call Center BPO – the Heart of Philippine BPO
Offshore call center outsourcing has been the main attracting in drawing the worlds eyes towards the Philippine BPO industry. The primary reason behind the success of Philippine call centers is the quality of the service provided by the Filipino telemarketers. The Filipinos, with their country having been a previous colony of both the United States and Spain, have developed a more rounded accent when speaking English that is sounds similar to the accent of Latin-Americans. The rapidly increasing populace of the Philippines which further tightens the competition among its people has caused the country to set very high standards for employment. Call centers have become even more selective due to their drive to offer top quality services.
The Philippine Government has also showed tremendous support to the offshore call center outsourcing industry in the country. The success of the call center industry has contributed much towards improving the nation’s economy. That Government has intensified its efforts in promoting English language proficiency and awareness of its many benefits favorable towards achieving a good career. A comprehensive policy had been passed making English the chief language of schools and universities. Many call center training centers have also been established to offer free or low cost training for those who aspire to work on call centers. Tax incentives are also being granted to call center operators to encourage more people to engage in the industry. More funding have also been geared towards technological advancement which will aid in the expansion of the Philippine call center industry.
The Philippine Government has recognized the great potential of the call center industry and has shown its intention of continuously supporting the industry.
