Today two economic trends are accelerating Business Process Outsourcing or BPO’s rate of growth. The first is globalization. For the first time since the days of sailing ships, trade barriers are coming down. The growing integration of economies and societies around the world makes globalization work for all. Through globalization the poverty line has been alleviated in many developing countries including Philippines, India and China. Information technology and high English proficiency level made BPO centers flourish in these countries. The labor cost is low when foreign investors ourtsource their businesses. The average rate a Filipino worker gets is $1.5 per hour and a $1 per hour for Indian workers. Local and National governments push to promote this service advantage and are gaining positive response from major countries such as United States and United Kingdom.
The Internet, of course, is enabling this trend. Doing business on the Web is easy and becoming easier. A Web site makes your products available to a customer around the corner as well as half way around the globe. Geographic boundaries disappear in a Web browser.
The Internet has made the world increasingly competitive, the second economic trend affecting BPO corporations. Product cycle times that used to take months now can take hours. This frenetic pace is forcing companies to harness all their resources to concentrate on their core competencies. They can’t afford to because today’s competitive world is not as forgiving of mistakes. Outsourcing is becoming the only way to prosper and succeed in a world moving at Web speed.
What complicates business today is that successful companies must have even better core processes to just stay in the game. Outsourcing becomes the only way a company can concentrate its scarce resources of time and money on its core competencies and still get better performance for its non-core functions. Nevertheless, it’s clear that the dynamics of global economic and geopolitical challenges have impacted this market during the past year.
Philippines leads the way in BPO with over 250,000 English speaking workforce employed and is still growing. BPO in the Philippines range from customer service, technical support, sales, travel and hospitality and banking and finance. Filipinos are known for their hospitality and are competent, professional and skilled experts in various fields. With the advent of globalization and the easy internet accessibility, global outsourcing will soon become the best avenue to gain world wide market advantage. Many Filipinos looked at BPO as a serious career and as something that will give them opportunity for growth and better knowledge whether it be by technology, business development or dealing with different types of customers. Constant development in human resource with strict standards to uphold offshore client requirements are seen by how the companies e-reps take care of each call taken.
Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.OutsourcingOutsourcing.Com.