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As a business owner or manager in the BPO industry, outsourcing has the potential to be the bestest friend and ally you’ve ever had. It’s been a very common business movement, with the process saving large sums of money which can instead be invested into the overall revenue or another aspect of the company. However this lucrative outcome depends on what you outsource, how you outsource and most importantly, where you outsource. Major outsourcing providers are primarily located in Asia, particularly in India, China and the Philippines.

India: former BPO Industry King

It wasn’t long ago that it was just India that had the outsourcing for the BPO industry market cornered. Ever since it was colonised by the British empire, it had a prolonged name for being the informational technology outsourcing country – and for a good reason. Information Technology has been the most prominent source of revenue and employment, making it a popular career choice for the population to be educated in. According to IBEF, as of 2016, India is the fourth largest base for new business in the world and home to over 3,100 tech start ups which is only set to increase to 11,500 by 2020. Home to IT giants IBM, Cisco and Oracle, it has maintained its status for a successful outsourcing country.

Philippines takes the lead

Despite the accomplishing figures, India has now lost significant outsourcing ground to the Philippines over the last few years. The Associated Chambers of Commerce and Industry in India reported a 70% loss in outsourcing market share with call centre and related services, with the LA times reporting Philippines BPO Industry revenue at a staggered $25 billion, equal to 10% of the country’s economy. The Philippines is now quickly gaining popularity within the BPO industry, known for passing along not only affordable services but unique capabilities that breakdown the stigma that comes with outsourcing. It’s garnered global attention, and major cities Manila, Cebu and Davao is now packed with satellite offices of global businesses and firms to accommodate for their outsourced workers. 

So why has the Philippines begun to usurp India’s seemingly unshakeable position as global outsourcing King?

IT BPO Industry

BPO Industry

English Quality and Accent Neutrality

Communication is already a must to hold a business together, so to bring outsourcing to the table for customer support and other business processes requires double of the communication effort. Without clarity, you’ll find yourself facing a multitude of road blocks for getting your business goals accomplished instead of experiencing the many productivity benefits outsourcing is support to bring. In addition, from a customer-facing point of view, your brand reputation relies heavily on customer experience. If your customers have trouble getting help when they need it to the most, it’s enough for them to suddenly be interested in your competition.

Flatplanet reports that the Philippines has an impressive 92.5% English proficiency rate,  with their English coming with an accent neutrality that many companies find highly attractive for their customer support departments. The Philippines is also highly influenced by the American / Western world culture which naturally adds common slangs and English idiom into their vocabulary. In addition, the Philippines media includes American channels as opposed to India.

Td;lr – Communication and business relationship wise, the Philippines offers the least cultural barriers for you and your customers.

Sophisticated Business delivery services

Major government support for the BPO industry is a significant contributing factor to the success of the Philippine outsourcing industry. Instead of setting up infrastructure and operational roadblocks, the government provides support for expansion, advanced training and technological needs. A variety of local firms and startups provide technical training opportunities and improved business delivery solutions to support the IT BPO industry in the country. They are also compliant with the international Data Privacy Act, which requires business to adhere to international data privacy regulations for sensitive information.

Minimal time difference

Manila is only 2 hours ahead of Australia, or 4 hours from New Zealand compared to India’s 5 hours / 6.5 hours time difference. This makes it much easier to manage your offshore team as the minimal time difference will mean little disruption of workflow and for the most part are both in office at the same time. If anything it increases productivity – it gives you enough time to settle into your office and prepare your day and workload for your team before they start theirs instead of them wasting the day waiting to be briefed.

Although the Indian outsourcing reigned supreme for a number of years and still remains on top, it’s very clear that the Philippines is now quickly rising as a BPO industry outsourcing contender. With stronger English proficiency, accent neutrality, shared cultural influences and supportive government backing, the Philippines offers a better strategic advantage for your company and should be seriously recognised as an outsourcing option.

Outsourced Quality Assured, Inc. is a leading IT outsourcing company that continues to dominate the IT BPO Philippines market. We offer high quality outsourced it services and provide a highly professional offshore staff for businesses worldwide. As one of the leading IT BPO Solutions expert today, our goal is to find and place exceptional remote staff who are sure to exceed your expectations.