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“No man is an island” is a famous quote that applies to both life and enterprise. Regardless of your strategies, your business cannot grow steadily if your non-core functions overshadow your primary efforts and competencies.
Hence, many businesses hire offshoring providers in the Philippines to address these gaps. The approach lets companies entrust their tedious tasks to a Filipino vendor at affordable rates. It allows them to focus on enhancing their core offerings to gain a competitive advantage.
Are you curious about the proven benefits of this strategy? Let us explore real-world examples of offshoring to the Philippines.
Reasons Companies Offshore to the Philippines
Business process outsourcing (BPO) in the Philippines offers cost-effective support to small, mid-sized, and large enterprises. Service providers employ skilled, English-proficient workers and use up-to-date technologies. With these resources, BPO vendors can help meet the demand for streamlined front- and back-office operations such as:
- Customer service
- Technical support
- Data entry and management
- Sales and marketing
- Content creation and moderation
- Healthcare support
- Financial services
- Manufacturing and logistics
- Telecommunications support
Remember that companies will not adopt a business strategy if they cannot benefit from it. They also carefully weigh the challenges of an approach to ensure optimization. So responsible companies should note the pros and cons of outsourcing to the Philippines to inform their efforts in developing a well-structured investment plan.
Here are some examples of scenarios where offshoring to the Philippines is ideal:
- Businesses wanting cost reduction outsource to Asian countries. The Philippines has lower wages than many developed countries. Hiring a Filipino provider also removes the need to expand office space, buy new equipment, and pay for extra utility costs.
- Enterprises aiming for cost-effective support employ skilled Filipino workers. These professionals are highly proficient in English. They also undergo BPO-specific training to meet the increasing demand for superior outcomes. This young and educated workforce has a literacy rate of 97% and an average age of 25.
- Due to the time zone advantage, companies looking to provide round-the-clock services adopt Philippine offshoring. The country is in a time zone that allows for overlapping working hours with many regions worldwide, including North America and Europe. Shared working hours enhance responsiveness and customer satisfaction.
- Organizations that seek cultural compatibility work with BPO providers. Filipinos have a strong affinity with Western culture and are familiar with related trends. This familiarity enables smoother communication and collaboration, especially when acquiring customer service outsourcing in the Philippines.
- Foreign firms that want economic stability while outsourcing find support in the Philippines. The local government promotes the BPO industry through various laws and initiatives, such as data privacy policies, special economic zone benefits, and tax incentives.
- Clients intending to achieve scalability procure offshoring services from the Philippines. Filipinos undergo regular training and are naturally amenable to performing urgent tasks. Their specialized skill set also helps them accomplish multiple tasks quickly and effectively.
- Businesses needing updated technology while avoiding extra costs sign deals with Filipino providers. These vendors use advanced solutions to complete repetitive tasks faster and more accurately. But they do not require a separate payment for these tools unless the client only needs the platform, such as in contact center as a service (CaaS).
10 Examples of Companies That Adopt Philippine Offshoring
Because of the above advantages, many companies rely on Filipino providers to address their evolving requirements. An IT and Business Process Association of the Philippines (IBPAP) report found that the local outsourcing sector achieved $32.5 billion in revenue in 2022.
IBPAP added that the finance, healthcare, retail, technology, and telecommunications BPO sectors drove over 10% growth. Let us explore some examples of companies contributing to the continued expansion of Philippine offshoring.
1. American Express: Prioritizing Core Expertise
American Express outsources its non-primary tasks to BPO companies in the Philippines to prioritize their core areas of expertise. The credit card company entrusts its customer support and collection services to Filipino workers.
This business practice helps American Express minimize delinquencies and improve cash flow operations. Most importantly, it lets the firm focus more on expanding its international trade transactions and keeping up with global market competition.
2. Wells Fargo: Accessing Skilled Professionals
Wells Fargo works with Philippine BPO providers to access skilled and English-proficient professionals. The financial institution taps into such expertise to streamline fraud management, financial accounting, payroll support, and customer service.
Wells Fargo also employs Filipino agents to deliver 24/7 customer support. Because they are in different time zones, customer service representatives from the Philippines can quickly respond to consumers’ concerns even if the bank is offline.
3. UnitedHealth Group: Cutting Costs
UnitedHealth Group delegated its various non-clinical functions to BPO firms in the Philippines to cut costs. In particular, the healthcare company outsources its project management, analytics, customer service, and engineering to Filipino providers. This approach helps the organization boost scalability and advance its technical capabilities.
4. Facebook: Enhancing Content Moderation
Facebook hires Filipino professionals to enhance its content moderation processes. Because millions worldwide share posts, videos, and images on the social media platform, Facebook needs extra hands to speed up moderation.
Hence, the company seeks third-party support because offshoring to the Philippines is cheaper than hiring new in-house staff. The social media giant also aims to capitalize on the local government’s tax and regulatory incentives.
5. Wireless Watchdog: Boosting Cost Efficiency
Wireless Watchdogs contracted with Philippine-based service provider Unity Communications to boost cost efficiency. The wireless management company worked with the provider’s customer support and sales representatives to accelerate dealings and call center operations.
Offshoring lets the client focus on core business processes and solve complex issues. Thus, Wireless Watchdogs achieved its growth targets four months after signing an agreement with the BPO firm. It also experienced payroll savings, giving it more resources to consider new employee acquisitions and expansion.
6. Google: Optimizing Expertise
Google is one of many examples of companies that acquire Philippine offshoring to optimize third-party expertise. The tech giant recruits Filipino contract workers to acquire the skills and capabilities its in-house team lacks. From information technology (IT) support to data analytics, Google hires Filipino contractors to fill specialized roles cost-effectively.
These workers cover excess tasks when the company’s in-house staff members take short-term leave. Filipinos also help address increased workloads and special projects. Because of such advantages, Google relies heavily on its extended workforce, which comprises 3% temporary workers and 0.5% independent contractors.
7. Connect Wireless: Easing Recruitment
Connect Wireless is another excellent example of a company that procures Philippine offshoring to ease recruitment and improve service quality. Unity Communications helped the online smartphone seller source, train, and onboard customer support specialists nationwide.
In addition, the BPO provider assisted the e-commerce company in designing a customer care workflow to improve its voice, chat, and email support. After a month, Connect Wireless gained a 92% improvement in service quality, a 95% increase in employee attendance and adherence, and a 90% customer satisfaction rate.
8. Nike: Strengthening Competitiveness
Nike relies on outsourcing to strengthen its competitiveness. The footwear company has no factories. It instead entrusts its product manufacturing processes to service vendors in the Philippines.
The fast and efficient production support helps Nike accommodate the demands of its large customer base worldwide. Outsourcing also lets the company save costs while ensuring quality products.
9. The Coca-Cola Company: Gaining Cost Savings
The Coca-Cola Company is a perfect example of a company that taps into Philippine offshoring for significant cost savings. The beverage supplier built global production and distribution networks in the country, including bottling companies and distributors. This strategy allows the enterprise to reduce manufacturing, bottling, and storage costs.
In addition to lower expenses, BPO has enabled Coca-Cola to focus on enhancing its syrup production. The company mostly gets its revenue from selling this syrup to bottlers.
10. AT&T: Attaining a Competitive Advantage
AT&T collaborates with Unity Communications to attain a competitive advantage. The BPO provider serves as the telecommunications company’s Alliance Channel partner for call center support.
Unity Communications helped AT&T expand its wireless market share in Arizona by 4% within the partnership’s first year. The telecom provider also secured 15% of the local market, enhancing its competitive edge.
Best Practices for Ensuring Success with Philippine Offshoring
Note that the examples of companies listed above do not achieve success with Philippine offshoring because of pure luck. They perform their due diligence before closing a deal and collaborating with a Filipino service provider.
Businesses implement best practices that foster effective communication and promote a solid partnership to maximize the benefits of outsourcing to the Philippines. They execute the following measures to achieve positive outcomes in the dynamic BPO market:
- Plan BPO investment in the country thoroughly. Specifying objectives and requirements for offshoring helps you develop a comprehensive plan. This blueprint must include needed services, key milestones, timelines, and performance indicators. Also, consider factors such as staffing size, infrastructure, and communication channels.
- Choose the right partner. Research, assess, and select a reputable provider from the Philippines. Perform due diligence, evaluate track records, seek referrals, and ensure cultural and business strategy alignment. Look for a potential BPO partner with a good market reputation and credibility.
- Establish effective communication between your onshore and offshore teams. After negotiating and signing a deal, set up advanced tools for virtual meetings, collaboration, and knowledge sharing. Schedule regular video conferences to foster stronger relationships and achieve desired results.
- Define the third-party team’s roles and responsibilities clearly. Build effective governance mechanisms to manage the partnership and ensure accountability. Regular structural reviews and updates help address evolving needs.
- Be active in training Filipino workers. Work closely with the BPO partner when introducing business offerings, strategies, and goals. Ensure that this process guides the team in becoming familiar with the brand.
- Understand and respect cultural differences. Be involved in cultural sensitivity training to bridge potential gaps between onshore and offshore teams. Create an inclusive culture and foster mutual respect for a positive work environment.
- Implement quality assurance to measure the offshore team’s performance. Include key performance indicators (KPIs) in the agreement to assess the Philippine provider’s productivity, efficiency, and service quality. Conduct frequent performance reviews and exchange constructive feedback to guarantee continuous improvement.
- Execute robust security measures to protect sensitive information. IBM reported that 45% of all data breaches occur in the cloud. So the absence of solid security policies makes online transactions with the BPO provider vulnerable to cyber threats. Ensure the provider adheres to international data protection standards.
- Learn about the country’s local laws, regulations, and labor practices. Complying with applicable legal requirements helps avoid the high cost of violation fees, conflicts, and possible lawsuits. Seek legal advice, especially regarding employment contracts, taxation, and intellectual property rights.
- Build a long-term relationship with the BPO firm. Treat the offshore team as an essential element to achieving continued growth. Recognize achievements and foster a sense of loyalty and belonging.
The Bottom Line
The listed examples of companies prove that Philippine offshoring brings tangible benefits to businesses. Working with Filipino vendors helps enterprises grow while cutting expenses and streamlining job-intensive functions.
Before you can experience those advantages, you must follow the best practices when outsourcing to the country. From comprehensive planning to long-term relationship building, these practical tips ensure continued success when working with a Philippine BPO firm.
Connect with Unity Communications today if you want to achieve similar results. Our Filipino support teams are equipped with robust solutions and regularly trained to streamline your time-consuming, repetitive processes.