In less than a decade, the Philippines has emerged as businesses’ top choice for business process outsourcing. The country is often referred to as the World Capital of the BPO industry. Over the years, the industry has grown by leaps and bounds and continue to do so. After BPOs, the country’s Knowledge Process Outsourcing industry is growing at a fast pace and leading the world. The industry is expected to reach the same market size as BPO in no time.
What is Knowledge Process Outsourcing?
What is Knowledge Process Outsourcing?
When it comes to outsourcing, Knowledge Process Outsourcing is relatively newer than Business Process Outsourcing. This industry specifically involves information-related business tasks. In simpler words, jobs in this industry include skilled roles like market research, survey analysis, data mining, equity research, research and development and more. These jobs are essential to the growth of the business and cannot be ignored. When such tasks are allocated to an outside organization that belongs to a different geographic location, it is called Knowledge Process Outsourcing. Many companies prefer to knowledge process outsourcing to the Philippines because these tasks require specialized knowledge and expertise. Besides the Philippines, the other countries that have prominently contributed to this global industry are India, China, Sri Lanka, Singapore, Malaysia, and the Baltic States.
Why Knowledge Process Outsource to the Philippines?
The Philippines has consistently been leading the outsourcing business globally. While cost savings remain the prime reason why companies like to invest in the Philippines, talent and skilled labor are a few other important motives. The company has a lot to offer and businesses around the world have experienced the same. Let’s take a look at the reasons why companies prefer to knowledge process outsource to the Philippines.
Cost Reduction: For many businesses, this is the prime reason for offshore outsourcing to the Philippines. Studies suggest that companies can reduce as much as 45 to 50 percent of operational and overhead costs by hiring services from the Philippines. While the operational cost is much affordable even the average salary of a Filipino is at least 50 percent lesser than the employees of the west. Cheap yet efficient labor is a great reason why companies from all over the world are attracted to the Philippines. In addition, these companies have an established system that saves the extra cost of infrastructural arrangements, training, recruiting, and more.
Neutral Accent and English Proficiency: Another reason why Filipinos are the top choice for creative process outsourcing, business process outsourcing, and knowledge process outsourcing is their neutral accent. It makes them incredible communicators when it comes to interacting with clients from the West. At the same time, most of the Filipinos are as proficient in English as any native English speaker. This is due to the cultural influence as well as due to the emphasis on education and high literacy rate.
Skilled and Specialized Talent: KPO industry extensively relies on specialized skills and knowledge-intensive experience in risk management, financial studies, research and development, analytics, IT and engineering. With a pool of talent streaming out educational institutions, every year making the country a strong contender.
Time Difference: Another reason why outsourcing to the Philippines a good idea is because these companies work 24/7 a day. This means that the work continues even at the night, when you are sleeping. At the same time, different time zones and cultures contribute to the factor that the work never stops which is the key to enhanced productivity and efficiency of the company.
In addition, strong government support encouraging foreign investments and growth of the industry has made it one of the prime sectors in the company contributing to the economic growth and national GDP. Meanwhile, the legal laws of the Philippines are similar to that of America which makes it the perfect choice for outsourcing business. There is high-level cultural compatibility between the Philippines and the countries from the west. For those unfamiliar, the Philippines was colonized by Spain, USA, Portugal, and a few more other foreign forces. This has influenced the culture and ethical values massively. Finally, it is centrally located on the world map with well-developed ports and airports that provides easy access and trading options.
The future looks bright for the Philippines’ outsourcing industry. The BPO and KPO industries are forecasted to improve and grow at a faster rate in the near future.
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