Business Process Outsourcing Companies in the Philippines Are Primed to Take the Global BPO Market

The Philippine outsourcing market has grown significantly since its inception in the 1990s. In 2022 alone, the sector’s value climbed to $35.9 billion in revenue. These figures indicate the increasing trust businesses place in offshoring providers from the Philippines.

But how do business process outsourcing (BPO) companies in the Philippines contribute to the sector’s expansion? What are the steps they take to ensure high-quality support services? What are the advantages they offer to attract clients?

Keep reading to find out.

Getting to Know Philippine BPO Companies

Service providers from the Philippines deliver cost-effective support to ease daily operations. They take over non-core, repetitive tasks to let the in-house team prioritize revenue-generating processes and projects.

The Philippine BPO market began when the first contact center was established in 1992. The country’s offshore outsourcing market now has more diverse service offerings targeting clients worldwide. Here are the common outsourcing services delivered straight from the country:

• Inbound customer support for responding to consumer inquiries and complaints
• Outbound customer service for conducting telemarketing, sales, and follow-up calls
• Technical assistance for troubleshooting issues related to information technology (IT)
• Software development for creating, testing, and maintaining applications
• Web development for designing and developing websites and web apps
• Mobile app development for building smartphone-based apps for various uses
• Quality assurance and testing for ensuring high-quality software products
• Information management for performing data entry services
• Knowledge process outsourcing (KPO) for market research and analysis
• Legal process outsourcing (LPO) for supporting legal research and documentation
• Accounting support for handling various financial services
• Human resources (HR) support for managing recruitment and employee engagement
• Content moderation for reviewing and monitoring user-generated online content
• Healthcare outsourcing for handling non-clinical tasks such as medical billing 
• Creative services for content creation, such as graphic design and video production
• Customer relationship management (CRM) for organizing sensitive consumer data

The sector experiences upward growth as many businesses seek affordable third-party assistance. According to the IT and Business Process Association of the Philippines (IBPAP), the industry was expected to generate $35.9 billion in revenue in 2023. 

IBPAP said the projected revenue growth would originate from animation, game development, cybersecurity, and contact center outsourcing segments. Financial technology, healthcare, internet service, IT, and shared services would also pitch in.

Six Ways Philippine Companies Boost BPO Services

Business process outsourcing companies in the Philippines achieve success through tried-and-true methods. They execute critical measures to meet clients’ demands while ensuring operational excellence. These practices help enhance offshore outsourcing services and maintain the country’s competitive advantage. 

Explore below the typical practices a BPO provider follows to support businesses.

1. Pick the Best Employees

Workers are crucial to a company’s success. Service providers thus ensure they hire the best employees to meet the diverse needs and requirements of clients. They execute a multi-faceted process to select scalable and skilled applicants to perform non-core tasks quickly and effectively. 

• Job advertisement. BPO vendors promote job openings through various channels, such as online job portals, company websites, and social media platforms. They also hold job fairs and campus recruitment drives to attract potential applicants.
• Screening and application review. Vendors screen candidates to ensure they meet a position’s basic qualifications and requirements. This procedure involves carefully reviewing resumes, cover letters, and application forms.
• Initial evaluation. Service providers perform initial assessments to measure candidates’ relevant skills, cognitive abilities, and language proficiency. The process includes requiring applicants to take online tests or quizzes.
• Interviews. BPO companies invite short-listed candidates for in-person, phone, or video-based interviews. They aim to assess applicants’ communication skills and motivation for the role.
• Technical evaluation. Candidates undergo IT-related exams for technical support outsourcing positions. This assessment includes practical tests or scenario-based exercises.
• Behavioral assessments. Personality tests help service vendors understand how candidates will likely respond to specific work situations. This step also gauges how well the applicants align with in-house and client values and cultures.
• Background and reference checks. BPO firms study candidates’ backgrounds to validate their educational qualifications, employment history, and criminal records. They contact the applicant’s references and ask about their past performance, work ethic, and professional behavior.
• Final selection and offer. Based on the evaluation, business process outsourcing companies in the Philippines choose the most suitable applicants. They present job offers that include compensation, benefits, and other relevant terms.
• Onboarding and training. After accepting the job offer, new hires undergo orientation to familiarize themselves with the company. This approach includes discussions on policies, procedures, and job-specific training.

2. Invest in Continuous Skills Development

Philippine BPO organizations train and upskill their workforce, keeping professionals updated on industry trends, rules, and technologies. Continuous skills development and training enhance employees’ performance and broaden their knowledge. 

The listed practices help guarantee that the third-party workforce can handle random assignments efficiently.

• Filipino providers develop and host regular, proactive training programs. These initiatives cover technical capabilities, soft skills, and industry-specific insights. The goal is to teach workers how to deliver a superior client experience.
• Using e-learning platforms gives BPO workers self-paced learning opportunities. These solutions enable flexibility, letting employees access training materials at their convenience.
• Providers urge employees to pursue key certifications in their respective fields. Gaining certification requires deep expertise in a topic. Such accreditations prove that workers have relevant skills to meet your operational needs.
• Language training hones employees’ skills for engaging with international clients. Business process outsourcing companies in the Philippines thus invest in linguistic education and training programs. These initiatives help improve a workforce’s communication skills, neutralize accents, and foster cultural affinity.
• Some BPO vendors implement cross-training and job rotation programs. Exposing employees to different roles and responsibilities broadens their skill sets. Moreover, these efforts boost workforce flexibility and capacity building.
• Regular feedback and evaluation enhance work performance. The collected insights inform BPO employees about their strengths, skill gaps, and areas for improvement. 
• Mentoring and coaching enable knowledge transfer and skill development. BPO companies task team leaders with providing professional guidance and encouragement to regular employees for career growth.
• Vendors host or send employees to industry conferences and seminars. These programs let workers learn from industry experts and gain new ideas regarding the latest innovations. Such events also enable them to network with different professionals.

Furthermore, business process outsourcing companies in the Philippines offer incentives and rewards to motivate employees who showcase exceptional performance. Recognizing workers’ efforts encourages continued learning.

In Quantum Workplace’s recent study, acknowledgment primarily drives employee engagement. The software provider found that team members are 2.7x more likely to be highly engaged when recognized for their efforts. Hence, this strategy helps providers urge their staff to meet your requirements.

3. Adopt Advanced Technologies

Using up-to-date technologies allows BPO companies to speed up the delivery of high-quality services. They employ advanced solutions to optimize workflows and ensure accurate, data-driven insights. 

So, as technology constantly evolves, Philippine service providers continue to innovate for enhanced support. They leverage the following tools to enhance their business offerings:

• Robotic process automation (RPA) accelerates repetitive and rule-based tasks such as digital form filling. RPA helps minimize errors and improve efficiency in different front- and back-office operations.
• Artificial intelligence (AI) and machine learning (ML) simulate human knowledge to automate repetitive tasks and process large volumes of data. The resulting insights help make data-driven decisions and address fluctuating industry shifts.
• Natural language processing (NLP) enables computer systems to understand, interpret, and respond to human language. BPO providers use the tech to simplify customer interactions and collect meaningful feedback.
• Chatbots and virtual assistants automate responses to customer inquiries in real time. These AI and RPA-driven tools facilitate cost-efficient customer engagement around the clock.
• Cloud computing solutions facilitate the safe storage, access, and management of data. This technology, including contact center as a service (CCaaS) solutions, enables real-time, remote collaboration with clients. It lessens the need for on-premises infrastructure.
• Speech analytics tools guide business process outsourcing companies in the Philippines in tracking and analyzing audio interactions between agents and customers. This capability helps identify trends, issues, and sentiments for improving customer service.
• Blockchain technology allows for secure and transparent recordkeeping. This solution is especially useful in finance and supply chain management.
• Cybersecurity solutions enable BPO providers to implement advanced cybersecurity measures. These platforms provide extra protection for sensitive client data. Cybersecurity helps providers avoid wasting $4.45 million on average to mitigate a breach. Data breaches impact organizations that offer 81%–100% remote work.   

4. Execute Quality Assurance Measures

Rigorous quality control procedures ensure Filipino service vendors meet or exceed client expectations. They execute frequent audits, performance assessments, and feedback loops to determine potential challenges and areas for urgent enhancement. They maintain service excellence through the quality assurance measures below.

• Define quality standards. Service providers establish clear and measurable quality standards with their clients. These benchmarks assess a provider’s work performance and contribution to the business’s growth.
• Observe and record interactions. BPO call and contact centers monitor and document interactions between agents and customers through any communication channel. They review such engagements as part of the quality assurance process.
• Maximize the quality of evaluation forms. Business process outsourcing companies in the Philippines develop and use quality evaluation forms or scorecards. Their criteria include adherence to scripts, product knowledge, and customer satisfaction.
• Conduct calibration sessions. This practice involves team leaders, quality analysts, and supervisors. These people ensure consistency and alignment in assessing work performance. They review customer-agent interactions and discuss their results to reach a consensus on scoring.
• Provide feedback and coaching. BPO leaders give their team members feedback to identify their weaknesses and strengths. They also provide coaching to help agents boost their skills and daily performance.
• Perform root cause analysis. Service vendors execute this process in cases of recurring issues or drops in quality. They aim to spot underlying problems and resolve them accordingly.
• Strengthen collaboration with clients. Regular meetings and report submissions guarantee consistent service quality. Exchanging insights also refines services and ensures alignment with customer expectations and requirements.
• Ensure continuous quality improvement. Quality assurance is an ongoing process. BPO firms thus continuously review and update quality standards based on client demands, business requirements, and industry best practices.

5. Prioritize Security and Compliance

Business process outsourcing companies in the Philippines focus on strengthening security and compliance when dealing with sensitive data. Statista’s data shows that the global average data breach cost was $4.45 million in 2023. Filipino providers understand that letting their guard down means high mitigation costs and lower client trust ratings.

Hence, service providers apply robust cybersecurity techniques and adhere to industry-specific compliance standards. They safeguard customer data and maintain confidentiality in these ways.

• Draft and implement comprehensive information security policies and procedures. These guidelines cover ways to handle confidential data and remote access controls.
• Employ physical security measures to protect facilities and data centers. Filipino providers use multi-factor authentication, biometrics, and surveillance devices to prevent unauthorized access.
• Optimize robust network security solutions. Such tools include firewalls, encryption protocols, and intrusion detection systems. Service vendors want to protect servers and networks from cyber threats and critical disruptions.
• Use encryption strategies to safeguard data in transit and at rest. These techniques ensure that intercepted data remains unreadable without the correct decryption keys.
• Perform regular security audits. Business process outsourcing companies in the Philippines identify vulnerabilities and weaknesses in their systems. These audits help in proactively addressing security issues before they become significant risks.
• Adhere to local data privacy regulations. Philippine providers comply with data security rules in their clients’ home countries. This way, they avoid the harsh consequences of breaches and litigation.
• Conduct employee training and awareness. BPO providers educate and train their employees regarding data security and compliance. They emphasize the importance of best practices, security protocols, and noncompliance outcomes.
• Match security measures with clients’ strategies. Expect aligned security rules, techniques, and solutions when working with a BPO company. Vendors should ensure their security and compliance approaches match their clients’.
• Develop a well-structured incident response plan. Filipino providers detail the steps to take before, during, or after a security breach. This plan helps them respond promptly and effectively to such incidents, minimizing damages.
• Create a business continuity and disaster recovery strategy. In addition to an incident response plan, providers also prepare a plan for continuing operations amid security attacks. Recovery measures guarantee uninterrupted services during emergencies.
• Prepare and submit regulatory compliance reports. Philippine BPO firms draft and present detailed compliance reports to their clients. These documents indicate adherence to data security policies as part of their ongoing service level agreement (SLA).

6. Diversify Offshore Outsourcing Services

Philippine business process outsourcing companies work to expand their service offerings by tapping into new markets and accommodating international clients. Diversification helps them adapt to abrupt industry changes and achieve a competitive edge in the global BPO sector.

They make these capabilities possible through the following practices:

• Perform in-depth market research and analysis. Philippine providers study customer demands, emerging trends, and untapped service areas. Understanding these concepts informs them of the best ways to approach new sectors and broaden their expertise.
• Enable service line extensions. Vendors expand their existing core offerings to include additional minor or related services. For instance, a third-party call center focused on e-commerce support may extend its services to cover technical assistance. So, it can deliver help desk support when another client wants to outsource tech solutions.
• Upgrade technology solutions. Consistent system updates and maintenance let Philippine BPO firms offer uninterrupted and broader services.

Benefits Filipino Service Vendors Offer

Besides exercising the above methods to ensure smooth service delivery, business process outsourcing companies in the Philippines offer several benefits. These advantages continuously attract many businesses worldwide to seek front- and back-office outsourcing services from Filipino providers. 

• Cost savings. Filipino service vendors offer affordable support services to foreign clients. The Philippines has a lower cost of living and income than developed countries. They offer as much as 70% savings on hourly or monthly service fees.
• English proficiency. Filipinos have a high level of verbal and written English. This fluency allows them to communicate with international customers naturally and effectively.
• Personnel skills. Philippine service vendors employ a large pool of experienced and educated professionals. These workers undergo regular training to expertly navigate IT, customer service, business administration, and other fields.
• Cultural and time zone compatibility. Filipinos are immersed in and familiar with Western culture. They can also operate and adapt to the time zones of their international clients. Hence, they can complete tasks on time and without compromising quality.
• Government support. The Philippine government broadly supports the industry because of BPO’s enormous economic contribution. It implements laws and provides incentives to drive providers’ continued growth.
• Scalability and flexibility. Filipino BPO organizations are well-equipped to manage and accomplish multiple workloads and scaling requirements. They quickly adjust their resources to meet client needs cost-efficiently.
• Business continuity. With disaster recovery and incident response plans, Philippine vendors have shown resilience in handling disruptions. These incidents include natural disasters and cyber threats. This ability gives clients confidence that they can avoid prolonged system downtime that may impact daily efficiency.

The Bottom Line

Business process outsourcing companies in the Philippines expand their global footprints through various practices. They start by employing the best employees to meet changing client requirements. Then, they combine talent with advanced technologies to streamline day-to-day operations.

Besides, Filipino providers employ strategies to ensure consistently high-quality outcomes while protecting confidential data. Their diverse service offerings also bring significant benefits for continuous business growth.

Contact Unity Communications if your business needs third-party support. The award-winning BPO provider has a well-trained team in the Philippines ready to optimize your workflows. Its Filipino workers leverage modern solutions and strategies effectively to help your enterprise succeed.