After surpassing India as the global outsourcing leader in voice-based services, the Philippines receives a huge vote of confidence from Wells Fargo & Company, one of the largest banks in the world. Wells Fargo & Company recently announced their decision to set up their business process outsourcing operations in the Philippines. This decision to outsource to the country despite a pending US anti-outsourcing bill is a testament to the competency of the local workforce, reinforcing Philippines’ reputation as an exceptional provider of labor-intensive and IT-enabled outsourcing services.
India’s large pool of IT professionals is the main driving force behind its robust outsourcing industry. However, as outsourcing continues to penetrate a growing number of industries, the availability of IT professionals is no longer the primary factor to consider when selecting a BPO location and this enabled the Philippine BPO Industry to claim a larger percentage of the global offshoring market.
Much of this success is attributed to the country’s primary strengths. These key factors have made the Philippines the destination of choice for cost-effective, quality outsourcing services.
Filipinos are heavily influenced by the western culture as is evident in the local mass media, corporate world and the arts. Thus, Filipinos are in a better position in conversing with Americans.
The Philippines is one of the countries in Asia that has the highest literacy. Filipinos from all economic and social backgrounds use English as their second language and are able to comprehend and converse well in the English language.
Low Operational Expenses
The cost of living in the Philippines and the wage rate is significantly low. Businesses obtain large savings off their operational expenses compared to getting an in-house staff.
The Philippine government gives more tax incentives to BPO companies, adding up to the financial benefits of outsourcing. These incentives include VAT exemption, income tax exemption, employment of foreign nationals and many other preferential treatment for certain government bodies.
Stress has long been regarded as a major threat to call centers and other outsourcing service providers in the Philippines. Call center jobs, in particular, are strongly associated with high levels of work-related stress— from dealing with irate callers to being in a high-pressure work environment driven by performance targets and various other metrics to be met daily.
As a result, employees are more likely to use sick time, have low morale and experience interpersonal conflict on the job, and this stress leads to decreased productivity and even workplace bullying and violence. In worst cases, workers leave their jobs despite the high salary it offers.
Philippine call centers that are sensitive to the importance of maintaining a favorable working environment are taking measures in helping employees deal with stress.
Open communication between employees and management can create a sense of justice and fairness. Employees will feel empowered and valued, that they have people to turn to for their concerns.
Organizing a sound awards program and giving credit where it is due goes a long way into motivating employees to do better. Showing appreciation to employees’ achievements promotes loyalty to the company.
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Considering employees’ desires for personal and career growth will show employees that their company cares for their well-being. Workshops, seminars, and easily accessible information on career paths and competency requirements will aid employees in setting goals for their career.
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The management plays a great role in supporting employees. Motivating and empowering employees— rather than attempting to control them— contributes a great deal in promoting a favorable culture in the company.
A healthy employee retention program is one of the differentiators of Philippine BPO companies and other outsourcing service providers. By prioritizing employee retention through a proactive approach in dealing with work-related stress, companies ensure the loyalty of their top talented people. In turn, work performance is enhanced and quality outsourcing services are ensured.