5 Misconceptions About the BPO Industry in the Philippines

Misconceptions about the BPO Industry in the Philippines

Businesses looking to expand their operations and workforce have been opting to outsource in the Philippines. However, despite the well-known benefits of outsourcing, misconceptions about outsourcing in the country remain. As such, we have compiled a brief list of misconceptions about the BPO industry in the Philippines.

Misconceptions about the BPO Industry in the Philippines

1. Outsourced staff often yield inferior quality work

Despite what many may think, the quality of education in the Philippines is considered to be high. A significant portion of outsourced employees holds a tertiary degree or higher, even for entry-level positions. Additionally, the Filipino workforce has English language proficiency, technical skills, and business acumen. This, combined with a large pool of young, tech-savvy, and highly motivated workers, makes the Philippines a valuable and reliable partner for companies looking to outsource their business processes. Moreover, the Philippine government actively supports the growth of the BPO industry, providing tax incentives, infrastructure development, and support for skill development programs to attract international companies.

However, it’s important to note that the quality of staff from outsourcing companies can vary, especially based on the price. While there may not be a significant difference in cost between top-level business process outsourcing providers (BPOs) and budget providers, the quality of staff can be substantial. It is recommended to choose a provider with a proven track record of success and a good reputation for quality staff.

2. Outsourcing is all about cheap labor

If you only seek remote employees to reduce expenses, you are overlooking the numerous other advantages outsourcing can bring. With the advancements in technology and versatility in the workplace, you now have access to a vast pool of talented individuals from around the world. Outsourced specialized skills can lead to improved performance and more efficient use of resources.

In addition, outsourcing can provide a company with greater flexibility in adjusting to changes in demand or business needs. The outsourcing provider can be more nimble and responsive to changing conditions, allowing the company to stay ahead of the competition.

Outsourcing can also help a company manage risks. By transferring certain responsibilities to a specialized provider, a company can reduce the risks associated with these functions and focus on its core business. Additionally, outsourcing can provide a company with access to new markets and customers. This can lead to new opportunities for growth and expansion, as well as access to valuable insights and information that can help a company stay ahead of the competition.

Misconceptions about the BPO industry in the Philippines

3. Working a night schedule affects productivity

A very popular misconception about the BPO industry in the Philippines is that employees lack a proper balance between work and personal life because they work during nighttime hours.

Due to the significant hour difference between the Philippines and the US, most BPO partnerships require the outsourced staff to work at night. However, some BPO companies require work to be done during the morning (US night hours). This is particularly true for accounts in healthcare and game developers.

In addition, for outsourced employees who only work the night schedule, top BPO companies implement measures to mitigate stress and promote well-being:

  • Adequate lighting and ventilation: BPO companies aim to create a bright and well-ventilated work environment to promote a comfortable and safe work environment.
  • Breaks and time off: BPO companies often provide breaks and time off to help employees recharge and maintain their energy levels.
  • Health and wellness programs: Many BPO companies offer health and wellness programs, such as exercise and meditation classes, to help employees manage stress and maintain their overall well-being.

BPO companies need to consider the well-being of their employees. This ensures a positive and healthy work environment, which thereby impacts employee productivity.

4. Outsourcing means loss of control

Staff leasing is a form of outsourcing that mitigates the misconception that outsourcing implies a loss of control over outsourced teams. In this arrangement, the company retains ultimate control and is responsible for the day-to-day management of the employees — even if the employees are located overseas. The service provider assumes responsibility only for tasks such as payroll, benefits administration, and compliance with labor laws.

Customizable service packages can also help companies have control over their overseas operations. This approach is particularly beneficial for small businesses. It allows companies to choose the specific services they need and tailor the outsourcing arrangement to their specific requirements. The company can choose to outsource only certain aspects of its operations, while retaining control over others. For example, a company may choose to outsource certain non-core functions such as payroll or HR, while retaining control over key functions such as product development or sales and marketing.

With customizable service packages, the company can also specify the level of control it wants over the outsourced functions. For example, the company may choose to retain control over certain critical decisions or processes, or it may delegate complete control to the service provider. The service provider can then tailor its services to the company’s needs, providing the level of control and oversight required.

5. Outsourcing may introduce security risks 

A common misconception about the BPO industry in the Philippines is that sensitive company information may be shared with external parties.This misconception arises from concerns over data security and privacy as there have been instances where confidential information has been leaked or misused, leading to a loss of trust in the industry. 

However, the Philippine government has taken several measures to address concerns over data security and privacy. These include the implementation of data protection laws and regulations, such as the Data Privacy Act of 2012, which sets out the standards for the collection, use, and storage of personal data. The government has also established the National Privacy Commission, which is responsible for enforcing the Data Privacy Act and overseeing the protection of personal data.

To further enhance the security of sensitive company information, many BPO companies in the Philippines have invested in technology and infrastructure, such as encryption, firewalls, and secure data centers. They have also implemented strict access controls and background checks for employees, and have established data protection policies and procedures to ensure the secure handling of confidential information.

Misconceptions about the BPO Industry in the Philippines

Misconceptions within the BPO industry may stop some companies from outsourcing. However, despite these false beliefs, the BPO industry is thriving and is expected to keep growing. With 29.1 Bn worth in revenues, the BPO industry in the Philippines exceeded its 2022 goal. 

Outsourcing remains as one of the most powerful business solutions and will continue to strengthen the economy of the Philippines.

To learn more about outsourcing, you can read our 8 Tips on How to Improve the Productivity of your Outsourced Teams article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth ChampionHR Asia Awards, among others.

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