BPO Philippines: Outsourcing 2.0 | Inquiring business


At the turn of the century, when the business process outsourcing (BPO) industry was still young in the Philippines, the overwhelming focus was on cost reduction and scalability. While these factors still play a large role, they are no longer the main considerations. “Companies, as diverse as startups to multinational organizations, have learned that the customer must be the focus to stay relevant in a hypercompetitive, global marketplace. In this respect, the provision of a superior customer experience (CX) is one of the main drivers of the offshore outsourcing industry today, ”says Ralf Ellspermann, CEO of PITON-Global, a leading midsize BPO in the Philippines.

Of course, it’s quite difficult on land to deliver world-class CX at a reasonable price. Because of this, companies of all sizes and industries have looked to the Philippines offshore. There are a number of reasons for this: a superior workforce, excellent BPO management, industry and service specialization, and access to excellent technology, to name a few important factors.

Well-educated and highly skilled workforce, coupled with a high level of English language skills, is one of the most attractive features of the Philippines for offshore outsourcing. University programs produce highly skilled graduates with expertise in areas as diverse as IT, CX, and AI. Additionally, the BPO industry in the Philippines is one of the most sought-after job opportunities in the country, so competition for the best jobs with premium BPO providers is fierce. Another benefit: Filipinos are known for their patience, which is invaluable in implementing high quality CX programs.

In addition to a skilled workforce, BPO companies in the Philippines have management teams with extensive industry experience and competence. With two decades of growth and experience, many of these BPO management teams are highly skilled in both BPO and customer service best practices. These providers themselves had to demonstrate exemplary CX to their customers on land so that they could understand the importance of CX firsthand. Because of this, industry leaders in the Philippines are successful.

“BPO providers specializing in CX services also offer an unprecedented level of domain knowledge and expertise. Outsourcing to BPOs with detailed industry-specific practices is highly recommended as they can more easily tailor the solutions to their customers’ needs. Industry experts can be used to create targeted solutions and thus create the best possible benefit for BPO customers, ”says Ellspermann.

Access to technology is another important benefit of BPO in the Philippines. The country’s leading BPOs invest heavily in industry-leading technology and infrastructure. You will work with the latest artificial intelligence such as Robotic Process Automation (RPA) and Natural Language Processing (NLP). Premium providers who specialize in CX are often the most advanced BPOs adopting AI, RPA, and NLP early in their lifecycle. Those who do not adapt to technology as quickly as providers who specialize in new technologies are often left behind.

“Of course, cost containment and scalability were and will remain attractive features of BPO services in the Philippines. In fact, cost savings are the direct result of many factors in offshoring the Philippines; Up to 50% labor savings compared to onshore, increased efficiency through state-of-the-art technologies and rapid scalability through efficient programs and processes, ”explains Ellspermann.

Twenty years ago, the main benefit of outsourcing offshore was to benefit from lower costs and easy scalability. Today, the world’s most successful companies like Amazon, Google, and AT&T know that the recipe for long-term success is a world-class CX. Brand loyalty is fleeting at best when companies don’t deliver a great customer experience to every customer at all times and at every touchpoint. Today, these companies view cost savings as a welcome by-product of a well-planned and executed offshore outsourcing strategy rather than the ultimate end goal. “BPO in the Philippines works, but the approach has to be right,” concluded Ellspermann.

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