KPO Philippines
The Philippines have been a Business Process Outsourcing destination for many companies over the past few years and in recent years, the KPO Philippines industry is also growing and looking to be a promising new business niche. KPO (Knowledge Process Outsourcing) is generally known as the more specialized and complex brother of BPO. KPO is basically an industry that caters to the demand for offshore professionals like doctors, lawyers, IT professionals, and writers, among others.
Companies choose to tap into KPO companies mainly to lower operating costs and so look to outsource in developing countries India, the Philippines, China, Pakistan, and other Asian countries. In utilizing an offshore solution, companies can save on expenses like finding new employees and recruitment in general, training, human resource management, infrastructure, and equipment. Companies can also save on energy and salary costs. Investing in a KPO Philippines or India-based company can greatly increase a company’s profit margins while still maintain a high quality of service.
There are advantages and disadvantages to taking up KPO companies based in different countries. As mentioned, there are several key offshore locations around the world that cater to specific niches. For example, several countries can provide low cost IT professionals. KPO Philippines, China, Ireland and India-based companies have different salary ranges for their IT services. While Ireland can offer the highest English proficiency and present the best near-shore location, the relatively high salary bracket for the country’s IT professionals (around USD 25,000 to 35,000 per year) can be a bit expensive for companies looking to cut costs. China, on the other hand, can give 24/7 support and low cost manpower but a low proficiency in English and differences with Western cultures are downsides to an otherwise extremely favorable location. The leader in the offshore IT KPO industry is India, which produces a large pool of English-proficient IT graduates a year; India built infrastructure and created Software Technology Parks to more effectively cater to their clients.
Companies in the KPO Philippines industry can tap into a large pool; the country produces a huge number of IT graduates (more than 300,000) every year, most of them proficient in English. The Philippines is culturally compatible with the West, as well as has Special Economic Zones (SEZs) for companies, though the country also has a lack for IT training in general. Countries that wish to be competitive in the KPO and BPO industries will need to concentrate on training to supply the demand for highly skilled and experienced manpower. Governments will need to offer friendly policies and export tax exemptions as well to draw in more clients. Companies looking to outsource also look into other important factors when choosing the country from which to outsource their manpower, including political stability and infrastructure, among other things.
Choosing to get services from a KPO Philippines, India, or China-based company depends mainly on a company’s needs and preferences. At any rate, choosing to capitalize on a KPO service provider can both save money and provide a large talent pool for companies looking to expand their business.