It also provides support and protection to those who work in outsourcing business in the Philippines.įurthermore, CCAP grew from seven founders in 2001 to over a hundred member companies operating in various strategic locations throughout the country. It serves as a focal point for sectors that enable the Philippines to maintain its global leadership in the contact center industry. In 2001, former Department of Trade Secretary Mar Roxas during his tenure founded the Contact Center Association of the Philippines (CCAP), which is the industry’s governing body in the country. Many foreign countries do outsource Filipinos’ services because of the workforce’s competency, its cultural affinities with Western nations, and general affordability. Since outsourcing in the Philippines began, it become one of the top outsourcing locations worldwide. At the beginning of outsourcing in the Philippines, one of the key pioneers that established this industry was Frank Holtz who developed the Accenture Global Resource Center in Manila, making the company a pioneer in the Information Technology (IT) and service outsourcing industry. Since then, industry-wide revenues have increased tenfold. The industry of outsourcing in the Philippines has been around for over 25 years since 1992. The main work of BPO is to utilize the use of technology and use it as an advantage to make business operations more productive and effective. These type of services has been helpful to many business companies in accomplishing their business works or projectsīPO is also known as information technology-enabled services (ITES) and is considered to be part of the technology industry because it relies on technology/infrastructure to enable external companies to perform their roles efficiently. Meanwhile, marketing and technical support are examples of front-office services. Back-office services provide internal business processes such as billing and purchasing. It is divided into two types of services: back office and front office.
Outsourcing in the Philippines offers many types of work, from customer support to production to the back office.īPO is an industry that provides services to support companies. Further, external organizations typically set a different compensation structure for their employees than outsourcing companies, allowing them to get the job done for fewer costs. When a company uses outsourcing, it enlists the help of external organizations not affiliated with the company to complete tasks. One of the benefits of outsourcing is it helps businesses significantly reduce labor costs and accelerates the work process. Outsourcing in BPO is the business of hiring an outside company to provide services or create goods that have traditionally been performed by the company’s employees. It is where a company hires another organization to do some of its work instead of using its employees. Now let’s get into the meaning of outsourcing. BPO services have two main groups: horizontal services (those that may be applied across different industries) and vertically-specific services (those that demand specific industry vertical process knowledge). Moreover, it transfers one or more IT-intensive business processes to a third party, who then owns, administers, and maintains the chosen process following predetermined and quantifiable performance goals. In simple terms, when a company thinks that another company can handle a specific business task better, they choose to outsource its service to accomplish it. Businesses use a third party to help them carry out non-primary business tasks. Now that we are well aware of its existence and the vast growth of this industry in our country, I think it’s about time we educate ourselves on the real meaning of BPO.īusiness Process Outsourcing (BPO) is a practice in which a company hires an external service provider to carry out an important job or task. Currently, the BPO industry in the Philippines is continuously growing and has even expanded to different provinces. More foreign companies give their trust in Filipinos to help them with their businesses. There is no doubt that Business Process Outsourcing in the Philippines is now one of the leading sources of job opportunities here in the country. To put it simply, when we say BPO, what people only know is it’s a “call center,” but does it really mean the same?
There is this typical norm wherein when we speak of BPO, many people immediately think about it having to answer calls. Is there a difference between BPO and Call Center?.
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