Because of the global recession hundreds of multinational companies all over the world have decided to outsource a portion of their business processes. By doing outsourcing they can be able to cut costs on their business expenses and at the same time attain their business goals. Because of this the business process outsourcing industry becomes common to India, China and the Philippines.
Recently the Philippines is the number one spot in business process outsourcing industry along with China and India. Below are the contributing factors on the growth of the BPO industry in the Philippines.
Cultural affinity with Western
The Philippines has been colonized by both US and Spain for more than hundred years, because of this Filipino was able to adapt the culture and business practices of western people. Because of the like mindedness of the Filipinos with the Westerners, more multinational companies choose the Philippines as the best option to outsource their business needs also Filipino workforce can easily get accustomed to the professional environment of the western people.
High English Proficiency Rate
Being able to communicate effectively and efficiently with their clients is the major factor of every organization when doing outsourcing. It is really necessary that the offshore workforce has a first class English proficiency in order to communicate well with the clients. According to statistics the Philippines has 78.53% English speaking populace all over the world. A test made by GEC (Global English Corporation) in Brisbane shows that only the Philippines attained a score above 7.0 BEI level outdoing Slovenia’s 6.9 and Norway 6.54. It indicates that Filipinos has an ability to take an active role in any complex business discussion and perform difficult tasks at work.
Workforce Educational Excellence
The educational attainment of the workforce is one of the important factors that outsourcing buyers take into consideration. The Filipino people have a high regard for quality education because they believe that education is the only key to success. The Philippines has a large pool of skilled and professional workers, in fact the country produces 440,000 college and university graduates for 2012-2013.
Inexpensive Operation Cost and State of Art Facilities
According to the study if the business will outsource in the Philippines, owners will able to save $15,000-$22,000 yearly. Another cost reduction of BPO Philippines is the fewer number of paid holidays. The Philippines has 18 holidays per year compared to India 33. In addition the country has also an advanced telecommunication amenity that constantly upgraded.
