When starting a business, it’s very common to keep everything managed and operated in-house. However, as your business grows, you are faced with the decision of how to continue to develop and maximize productivity. 

Are you looking to expand your business into the global marketplace while maintaining direct control over your core competencies? Then read on to find out how a BPO might just be the perfect option for you. 

What is a BPO?

Business Process Outsourcing (BPO) is the process of contracting your non-primary business functions and activities to external third-party providers. In general, BPO is used as a shorthand for companies that provide this service for other businesses, either as a broker between freelancers and contractors, or as a direct employer of relevant staff.

As a company engaging a BPO, you are paying for the delivery, technology, and management of these services – typically at a lower cost than organising an in-house alternative.

What services do BPO’s offer?

BPO’s can offer all kinds of services, but they typically provide general tasks and transferable services such as accounting, customer relations, call centers, and data entry. There are also more dedicated BPO’s that focus on specific industries or service verticals, and can provide more skilled offerings.

For example, you can have BPO’s focused on ecommerce who would provide a full suite of operations from quoting, processing, order management, bookkeeping, batching, billing and payment services.

Business Process Outsourcing in the Philippines

The Philippines is ideal for BPO’s – a high quality talent pool with strong english competency combined with a rapidly expanding business sector makes the country rank consistently among the top outsourcing locations in the world. Add in 16-18% of the global market share, the Philippines is the call center capital of the world.

BPO companies in the Philippines serve a growing number of clients from Europe, Australia, and New Zealand, however the largest outsourcing client by far is North America, who make up around 65% of the local market. 

These companies serve as a vital and valuable role in the country’s economy, being among the largest contributors to GDP in the Philippines with a revenue of over $24.4 billion USD in 2018.

Why should my business use a BPO?

The most obvious benefit to using a BPO is cost. Typically, engaging a BPO allows you to leverage low-cost labour markets for your non-core business functions, and focus your in-house team on the areas of your business that are your core competencies.

Another major benefit of Business Process Outsourcing is access to state-of-the-art technology and systems that are already in place and fully operational. By working with a specialised BPO, you can ensure that your business is always current with technology without taking on the cost of software licensing, hardware upgrades, staffing or training.

However, there are also other benefits to utilising BPO’s that can be difficult to notice at first glance. These include the ability to run a global business operating 24/7, make inroads with international markets, as well as operate agile and remote working environments.

Find out more about working with BPO’s in the Philippines by contacting RISE today.

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