The Philippines is famous for two things, its tourism industry and BPO companies. If talking about tourism, then ecotourism is the right term. Here not only the Filipinos contribute to the natural environment but also foreigners who visit here. The Philippines has earned a global presence as a leader in Business Process Outsourcing (BPO) and the IT industry. Previously the custom was that the sector worked on attracting foreign companies who are seeking a skilled workforce. However, today this concept has been overtaken by homegrown BPO and IT companies. This means that now these companies are run by Filipinos and these companies cater to both national and international clients. This growth is the primary reason for a significant shift in the Philippine IT landscape.
Foreign businesses now take particular interest in the Philippine business industry, which makes Filipino translation services a necessary component. The lower labor cost in the Philippines is one of the core reasons behind Business Process Outsourcing. Don’t worry, because we will discuss this point in detail. So stick to this read, and embrace yourself for an informational ride.
What Do You Mean By BPO?
Business process outsourcing companies established and run by Filipinos cater to both domestic and international clients. BPO refers to the practice of contracting a third-party company to handle specific business functions. Traditionally these functions were performed in-house. These functions consist of a wide range of activities, from customer service and back-office operations to IT support and marketing. Now the question arises, Why outsource?
The major reason behind this outsourcing is cost reduction. These BPO providers offer lower labor costs, especially when operations are moved to other countries where wages are quite high. Other than that, these BPOs allow businesses to scale up their workforce in order to meet the changing demands in the field. BPO companies specialize in specific functions hence streamlining processes and catering well to other businesses.
With the help of BPO companies, businesses can outsource non-core functions and hence free up extra resources. This will help them to focus on more important sectors and establish growth strategies. As Filipino BPO companies cater to world audiences, they especially require English translation services to ensure that their English-speaking clients understand what they are dealing with.
Factors Contributing to the Rise of Homegrown BPO and IT Companies
If we talk about 2022 alone, then according to the Information Technology and Business Process Association of the Philippines (IBPAP), 1.44 million Filipino workers were hired by the outsourcing industry on a full-time wage basis. This scheme brought more than $29 billion dollars home in just the first half of 2022. Such economic growth and increased disposable income could potentially boost the demand in sectors like wholesale real estate, as more individuals look to invest in property.
Government Support
The Philippine government actively supports IT and BPO companies through initiatives like tax breaks, special economic zones, and skills development programs. Other than programs and tax breaks, the government also offers support programs like DOST’s Philippine Startup Support Program. These programs provide financial support.
Other than utilizing homegrown resources, BPO companies sometimes also hire people from other countries. Here, with the help of English translation services, contracts, and other business documents are translated for the English speaking employees. In this way, these employees can work according to the standards of the BPO companies and comply with all the rules and regulations.
Growing Local Talent
The local talent in the Philippines is so skilled that instead of hiring from other countries, they hire their own people. The outsourcing factor arises when these Filipinos hire just a bunch of foreign people to perform specific business functions.
Final Words!
To sum up, BPO companies are one of the most profit yielding industries of the Philippines. The government also helps in taking these companies to heights by supporting them financially. This also supports the local talent in the country. Other than hiring local people, these BPO companies also hire from international grounds for which they need help from translation services.
