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With Manila beating Mumbai to take the second spot as the best outsourcing destinations in the world, Philippines has now stamped its presence as a promising outsourcing destination. As per Tholons 2013 report, Manila moved to the third position in the list of best outsourcing destinations in the world, and in 2014 bettered its position by grabbing the second spot.

So what makes outsourcing BPO services to Philippines so profitable? Let's have a look.

Philippines Dominating the Outsourcing Landscape

The progressive dominance of Manila as the most preferred destination for BPO services is proof enough that Philippines is dominating the outsourcing industry in a big way. Manila's success story on the global stage has transformed other Filipino cities like Cebu and Davao City in its wake and is giving Philippines the energy and direction to become a leader in BPO services.

There are various factors which have resulted in Philippines success on the global stage, with the most prominent ones being the following -

  1. Strong BPO Culture

    With American presence till 1946, Philippines has innately acquired the western culture and the American English accent which is now predominantly helping BPO Philippines companies to mark their dominance. It is estimated that in the on-going decade, India, currently the most favored outsourcing destination, might lose USD 30bn in terms of foreign exchange earnings to the Philippines (Source: ASSOCHAM).

  2. Government Support

    The World Bank estimates that BPO and associated IT services in Philippines have the potential to generate earnings of up to USD 55bn by 2020, around 11% of the country's GDP. The Government of Philippines is further augmenting this growth by announcing tax-holidays and pruning bureaucratic processes in setting up new businesses in Philippines, and doing every bit to make outsourcing BPO services to Philippines a more viable alternative.

  3. Skilled Manpower

    With 30% of graduates directly employable into the booming BPO sector, Philippines is highly focused on providing the required manpower to strengthen its human resource potential. Also the government's work scholarship program, and trainings provided to the BPO aspirants, further ensures that more resources are employable.

Major Outsourcing Verticals in Philippines

Philippines is currently dominating the outsourcing landscape in the following areas -

  1. Voice-based Outsourcing

    Undoubtedly with its western cultural influence and American English accent, Philippines is now the most preferred destination for voice-based services. Most voice-based outsourcing is now going to Philippines as India is losing it shine owing to its thick English accent and non-western business culture. It is estimated that around 70% of incremental call center and voice business in India will also be lost to foreign competitors, especially Philippines, as per ASSOCHAM.

  2. Data Entry and Accounting Services

    Most data entry and back office work including accounting services is now getting outsourced to Philippines, along with voice-based services. BPO companies in Philippines are now pushing hard to become one of the primary outsourcing hubs for all back office operations, aided by favorable government regulations and a talented work force.

  3. Animation Services

    Another key area where more work is being outsourced to Philippines is animation. With a global need for quality animation services, the BPO industry in the Philippines is looking forward to grab a major chunk of the market. Major Hollywood studios like Disney, Marvel, Warner Brothers, and Hanna Barbara have offices in the Philippines, which is a clear indicator of the country's ability to deliver high quality animation works.

  4. Medical Transcription Services

    With their proficiency in speaking and understanding American English, Filipinos are better equipped to handle transcription work. Moreover, The Department of Science and Technology-Information and Communications Technology Office (DOST-ICT Office) has partnered with the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) to implement the Medical Coding, and Billing Training and Certification Project. This project will further allow Philippines to build a globally competitive and innovative healthcare information management (HIM) services sector, thereby contributing to inclusive growth and employment generation.

  5. Software Development

    In 2014 PSIA (Philippine Software Industry Association) held the largest gathering of software professionals in the country to expose them to global engineering strategies so that they can match global standards when it comes to software engineering services. Philippines is aiming at grabbing more software development contracts such as developing applications based on Internet of Things (IoT), mobile platform development, etc. to make BPO Philippines an ideal destination for software services.

  6. Other IT Services

    Web designing, multimedia, SEO, digital marketing, graphic design, and DTP services are some of the major areas that are seeing an increase in outsourcing to Philippines. This is an indicator that BPO firms in Philippines are now providing quality services behind the traditional back office and voice based services.

Outsource To Philippines and Save Costs

With such a vibrant and booming outsourcing industry, Philippines is doing every bit to become the most preferred destination for back office and engineering outsourcing services.

Read our comprehensive article "Why outsource to Philippines" to know other benefits of offshoring your job to Philippines.

Read our article which highlights the advantages of the BPO industry.

Flatworld Solutions, through its global Delivery Center at Philippines, gets the best Philippines has to offer as an outsourcing destination, and leverages it for enhanced Call Center, Data Entry, Animation, Software Development, Medical Transcription services, etc. for global clients.

Contact us today and leverage the benefits that come associated with a truly international offshore service provider.

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