BPO Philippines – The Future of Outsourcing


January 10, 2022 | 2:57 p.m.

MANILA, Philippines – Business Process Outsourcing (BPO) in the Philippines has evolved since its inception. In just two decades, the Philippines has grown to become the world’s largest and most important contact center outsourcing destination.

The BPO industry in the country currently employs more than 1.3 million Filipinos and is expected to generate more than $ 29 billion by the end of 2022. Initially, BPO services mainly focused on cost containment and capacity to scalability. The focus is now on delivering a great Customer Experience (CX), but the future will be very different for a number of reasons.

Technology disrupted business processes and workflows in unexpected ways barely a decade ago. The future of the BPO industry in the Philippines is very similar to that of other industries, such as healthcare and education. There will inevitably be job losses due to automation and the continued application of artificial intelligence (AI). With technology taking on an increased role, almost all simple and highly repetitive tasks currently handled by agents in the outsourcing industry will soon be handled by AI.

“Over the next two to five years, these ongoing technological advancements will reshape the outsourcing industry in the Philippines and around the world. It will be a challenge, but if history is any indicator, the Philippine BPO industry can be expected to measure up, ”said Ralf Ellspermann, CEO of PITON-Global, a BPO leader at average size in the Philippines.

BPOs in the Philippines are able to deliver value in areas that cannot be automated. It is important to recognize where humans add value; these are often tasks that require empathy and active listening. “Hence the importance of providing quality customer experiences. This means BPO providers have to become experts in understanding what customers want and how to apply technology for optimal results, ”says Ellspermann.

“One of the reasons CX is so important is that AI R&D investments continue to skyrocket. Major players like Google, Microsoft, Facebook and IBM are all investing heavily in AI. The results come in the form of self-driving cars, better web search, more efficient cancer diagnosis, and improved customer service. BPO providers in the Philippines need to invest in CX to stay competitive or face extinction, ”he continues.

This is already the case in most sectors where companies that do not adapt quickly find themselves without customers. CX will perhaps be the most important factor for the future growth of outsourcing transactions, and vendors who do not invest in this area risk being left behind.

More complex and higher value tasks will also need to be handled by humans for the foreseeable future. But these, of course, require a much smaller number of agents. This explains why the country’s leading BPO providers are not only investing in technology, but also actively developing their people, with an emphasis on digital culture and customer experience.

“There is no doubt that offshore BPO in the Philippines will continue, but the type of processes and their volume will transform. To remain competitive, the country will need to reinvent its role in the global market and continue to develop its BPO workforce, ”says Ellspermann.

The BPO industry in the Philippines has key advantages over other outsourcing destinations. Low labor costs, an English-fluent and highly educated workforce, as well as advanced technology and infrastructure, are assets that will continue to give the country an advantage in the United States. to come up. These are attributes that are highly regarded by the world’s largest companies in places like the US, Australia, and the UK that rely on outsourcing.

“The future of BPO for the Philippines is exciting and auspicious, however, it will require considerable investment, time and effort as well as the means to determine ways to specialize in higher-value services to make it happen. this vision a reality.

The country is already in a privileged position to diversify its outsourcing services, making it a natural choice for companies looking to enter this market. This will allow the Philippines to play a vital role in maintaining BPO’s position as a leading CX supplier. In short, it’s about combining the best people, processes and technologies to deliver truly world-class CX, ”concludes Ellspermann.

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