How outsourcing companies in the Philippines are disrupting the tech industry

Gary Culverhouse
AUTHOR
Gary Culverhouse
    5 minute read

Disruptive outsourcing solutions, those that prioritise emerging tech like artificial intelligence (AI), robotic process automation (RPA) and the cloud, will overtake the constraints of traditional outsourcing solutions according to Deloitte. The infrastructure now available is enabling businesses to reimagine and completely transform the way they service their clients and do business. Outsourcing companies in the Philippines are turning to technologies that will help their tech clients gain a competitive advantage. The focus has changed from traditional outsourcing work to upfront transformation and automation.

As with many initiatives, businesses are discovering that to gain a competitive advantage through disruptive outsourcing, effort is required. The expertise of outsourcing companies can help businesses address concerns such as cybersecurity risks, government regulations, business change resistance and skill gaps.

70% percent of respondents in a survey conducted by Deloitte believe their outsourcing providers have a reasonable or advanced ability to implement disruptive solutions

Technologies driving disruptive outsourcing

Cloud computing

Most outsourcing providers are based on the cloud to allow their clients and employees to seamlessly communicate, no matter their location. This, in turn, enables a competitive advantage by providing businesses with innovative technologies while avoiding the need for them to implement cloud computing themselves. With outsourcing companies in the Philippines keeping up with these changes, they are helping businesses remain agile, expand their offerings and transform internal operations.

Innovation goes hand-in-hand with disruptive outsourcing. Traditional outsourcing solutions are changing to technology-based selections such as IaaS or SaaS cloud computing. Outsourcing providers are focusing their capabilities around company expansion opportunities by offering hybrid cloud services that allow for tech-based workload growth, scalability, and partnership advances.

Robot process automation (RPA)

RPA is becoming increasingly popular with a recent survey by Business Insider revealing 80% of respondents plan on implementing a chatbot this year. However, it doesn’t stop there. Many organisations are starting to realise that there is more to RPA than just chatbots.

RPA can be used to manipulate, capture and interpret data. It can also communicate with other digital systems as well as website visitors. Outsourcing combined with RPA is providing companies with the opportunity to fulfill customer demands by reducing response times both online and over the phone.

Business process automation (BPA)

BPA is a combination of AI and machine learning. The models respond to changes in processes and work towards streamlining internal operations. In short, BPA is a software tool that completes the process driven, repetitive tasks as opposed to an actual member of staff doing the grunt work. It’s common for companies to pay overqualified staff to complete low value, back office tasks, causing them to lose focus on the higher value revenue generating tasks. BPA essentially allows companies to free up their local employees to focus on the tasks they were initially hired to do. Examples of BPA softwares include, Xero, Monday, Jira and Asana.

BPA works hand-in-hand with outsourcing. By combining the two, companies around the world are improving their process accuracy and productivity. Outsourced BPA is reducing human error, increasing customer satisfaction and allowing employees to reassign to other areas of core business that increases revenue.

Most commonly outsourced roles in the tech industry

Technical support:

  • Desktop support specialists: maintain an organisation’s computer hardware and software systems
  • IT helpdesk specialists: troubleshoot and provide technical support to customers or clients experiencing hardware, application and software issues
  • QA testers: analyse and review new software or existing programs for any defects
  • Systems administrators: ensure that computer systems are up-to-date, configured correctly and reliable for the users.

Business services:

Customer support:

  • Chat management: manage the live chat functions on your website or other social messaging platforms
  • Customer service representatives: interact with customers to handle queries, complaints, process order requests while providing information on products and services of an organisation
  • Inbound and outbound sales support: provide administrative support to outbound and inbound sales representatives who contact potential prospects and existing customers to sell new or existing products and services.

Digital marketing:

Finance:

  • Bookkeepers: document accurate records of financial transactions and assist in the production of financial statements for an organisation
  • Accountants: analyse and report in preparation of financial statements and tax returns for an organisation
  • Financial analysts: examine and interpret the financial data of an organisation
  • Procurement officers: research products and services from existing and potential suppliers on behalf of internal business units
  • Tax advisors: provide organisations with expert financial advice and guidance regarding tax accounting and tax law.

Human Resources:

  • HR specialists: manage the entire lifecycle of managing employees from job advertisements and onboarding through to management, administration and termination
  • Talent acquisition specialists: source candidates using various channels, plan interviews with hiring managers and coordinate selection procedures and criteria.

Web development:

Why the Philippines is a top outsourcing location for tech companies

The outsourcing sector in the Philippines currently employs over 1.2 million people and is projected to grow 9% every year for the next five years. Factors that have influenced this growth include English being one of the official languages of the Philippines, a literacy rate of 96.3% and English being used as a way of verbal and written instruction across the country's educational systems and institutions.

The Philippines also has strong government support that recognises the economic growth potential of outsourcing and provides infrastructure for outsourcing providers and businesses setting up an outsourced team.

Outsourcing to the Philippines also allows businesses to tap into a global talent pool to access skills required for roles that may not be available locally.

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