Guide to Choosing the Right Type of BPO Service Level in the Philippines this 2022

1. Guide to Choosing the Right Type of BPO Service Level in the Philippines this 2021 BPO has become the buzzword all across different countries around the globe. Companies nowadays are looking at driving financial growth and operational efficiency by strategically outsourcing non-core functions or a large part of their business operations. These companies vary from small start-ups to tech giants such as IBM and Microsoft. There are many companies around the globe that have successfully integrated BPO into their business strategies. This is to ensure that some of their operations which include IT, legal services, accounting and finance, as well as medical transcription are efficiently done without neglecting their company’s core functions. Outsourcing providers offer different service models, which vary depending on the type of service or business function you want to outsource. With flexible arrangements now available in many providers’ service models, choosing the right type of service is the key to ensuring the right growth for your business, especially this 2021. The models of outsourcing depend on the size and nature of the business, along with the most crucial consideration which obviously has to do with cost-cutting. In this article, we’re going to find out which business model to choose, especially if you’re planning on outsourcing to the Philippines. Outsourcing Service Models Comprehensive The comprehensive model of outsourcing is a long-term arrangement between the business owner and the outsourcing service provider. Usually, a comprehensive business process outsourcing agreement has a timeline of over five to seven years. The outsourcing company will then be required to handle different training processes related to the core functions of the business, which include delivery, administration, content, as well as technology. Each of these services has multiple processes that are managed by the service provider. In this model, the BPO has full responsibility for meeting the objectives of the client’s business. Many businesses opt for comprehensive outsourcing models. Convergent Outsourcing, a collections agency based in the United States has outsourced its revenue cycle, management of receivables and other processes. Staff Leasing This type of service model talks about the contractual agreement of a client or a company with a leasing company for the recruitment of the employees. Some BPO companies offer this kind of service along with different services models to ensure that they can cater to different services for every requirement a company needs. . Many multinational companies resort to staff leasing in the Philippines, including high-tech companies and small businesses. Currently, more than 1.2 million people are employed in the BPO industry according to a report in the ASEAN Today. Companies in the US account for about 70% of BPO business in the Philippines. From lead generation to insurance claim verification, the talented workforce in the Philippines can handle it all. European and American companies are also increasingly outsourcing services that require more skills such as legal contracts, clinical support and research. Legal services are also another such outsourced work. Document formatting and legal transcripts are

2. some of the commonly outsourced jobs in the Philippines. The scenario is unlikely to shift as companies would have to pay eight times more in the US for the same services. Build-Operate-Transfer The government of the Philippines was the first one among Asian countries to bring in a BOT law mainly to encourage infrastructure development through a public-private partnership. Many business giants such as Capital One, American Express and JP Morgan have adopted the Build-Operate-Transfer model of BPO. The agreement between the GMR Megawide Consortium (GMCAC) and the Department of Transportation and Communication (DOTC) in the Philippines is an example of a BOT model. GMR has undertaken to build an international airport in Cebu with this agreement. The Philippines government awarded a BOT recently to the Vibal Group to set up the cloud infrastructure. Conclusion The business process outsourcing models have to match the business needs and the desired objectives. A detailed assessment of the strengths and weaknesses of the outsourcing partner, the projects or processes that need outsourcing will help you reap the benefits of outsourcing. It might always be a good idea to begin small when the business is a start-up or has very little experience in outsourcing. Testing the market with a smaller project will help you scale up your business in the new market.