Knowledge Process Outsourcing, an element of the outsourcing industry, is when an organization hires an external vendor to administer its core and information-related business tasks.
One in every of the most important outsourcing destinations for knowledge process services is the Philippines due to its talented workforce and cost-effective services.
Nevertheless, before you select to interact with a knowledge process outsourcing within the Philippines, study the risks and opportunities related to it.
In this text, we’ll cover the six key advantages of KPO Philippines and the highest KPO services within the country. We’ll also introduce six popular KPO service providers within the country.
Table of Contents
Let’s start.
6 key advantages of outsourcing knowledge processes to the Philippines
The Philippines’ outsourcing sector is understood for its thriving BPO industry. The IT and Business Process Association of the Philippines (IBPAP) reported that the market’s revenue grew by 10.3% to $32.5 billion in 2022. IBPAP cited growth drivers in finance, healthcare, retail, tech, and telecommunications.
The KPO industry, an offshoot of business process outsourcing (BPO), is drawing on the robust Philippine outsourcing ecosystem and showing tremendous potential.
But what’s the difference between KPO and BPO?
The KPO sector requires employees with specialized knowledge in a specific field and typically involves research-oriented and core tasks. Then again, BPO services demand administrative skills for easy non-core tasks.
Listed below are the six advantages of partnering with KPO services firms from the Philippines:
1. Offers cost-effective services
The expenditure of running a business within the Philippines is significantly lower than in other countries just like the USA and Switzerland. The low real estate, telecommunications, transportation, and labor cost reduce the general operations budget.
For instance, the typical salary within the Philippines is PHP 161,847.60 per yr (USD 3,218) for legal professionals, whereas the identical is USD 95,100 within the USA.
Likewise, the rental cost in a highly sought-after region in Recent York is USD 82.56 per square foot. But the identical in Metro Manila is barely 1,045 Philippine pesos per square meter or around USD 1.8 per square foot.
Which means that KPO vendors within the Philippines can offer services at lower costs, helping their clients get monetary savings.
2. Access to expert labor force
Since KPO services are knowledge-specific, employees have to be highly expert and experts of their domain.
Luckily, the Philippines has a robust education system that nurtures a talented workforce. In accordance with the 2022 Times Higher Education (THE) Impact Rankings, fifteen Philippine universities are among the many world’s best higher education institutions (HEIs).
The country also has 1,949 higher education institutions and, consequently, numerous expert college graduates.
Within the Global Skill Index report 2022, the Philippines ranked seventieth, above leading Latin American outsourcing hubs like Mexico (89th) and Chile (72nd).
Furthermore, the Philippines ranked 51st on the 2021 Global Innovation Index (GII) amongst 132 countries. In accordance with the report, the country’s strong areas include knowledge and technology outputs, business sophistication, and innovation.
The Philippines also ranked 58th out of 125 countries on the 2019 Global Talent Competitiveness Index (GTCI) by the French business school INSEAD.
In consequence, it’s easier to search out talented knowledge process outsourcing professionals at competitive rates within the Philippines.
3. Supportive government policies
The PEZA (Philippine Economic Zone Authority) has built special economic zones in Cebu City, Laguna, Baguio, and other cities to draw and encourage foreign investors.
Moreover, businesses registered under the Special Economic Zone Act of 1995 and the Corporate Recovery and Tax Incentives for Enterprises Act enjoy fiscal incentives.
Listed below are just a few incentives offered by the Philippine government:
- 4 to seven years of Income Tax Holiday depending on the placement and industry.
- Export firms have only 5% Special Corporate Income Tax or enhanced deductions for 10 years.
- Lets foreign firms import equipment, raw materials, spare parts, and accessories tax and duty-free.
- Offers domestic sales allowance of as much as 30% of total sales.
- Provides an exemption from payment of local government taxes.
Moreover, the country’s Bureau of Investment (BOI) gives the foreign company 100% ownership of their businesses – further boosting the attraction of foreign investments.
The above schemes aim to develop these regions into industrial hubs for various sectors like banking, ICT, etc. The growing domain expertise of the local businesses in these sectors then paves the best way for corresponding KPO services.
4. Robust infrastructure
The Philippines has financially attractive real estate prospects in each urban and rural areas. This contributed to its rating ninth on the 2021 Global Services Location Index (GSLI), above developed countries like Germany, Japan, Canada, and others.
Moreover, the Philippines has been upgrading its infrastructure up to now few years. The country is investing in roads, bridges, and other large-scale projects. The Philippine government also has higher budgets for public information technology infrastructures, comparable to e-invoicing and digital national identification cards.
By 2025, the variety of mobile subscribers within the Philippines will reach 159 million, and broadband subscribers will probably be around 10.8 million. This means that the country’s advancement in digital infrastructure has triggered rapid progress in its digital economy.
In consequence, Philippine super cities like Quezon City, Davao City, etc., are witnessing a rise in KPO firms. These firms effectively leverage the country’s booming infrastructure to supply top-notch knowledge and business process services.
5. Friendly culture
Filipinos are generally hospitable and friendly and have a robust familiarity with western culture. So that they accept foreign colleagues and outsourcing partners with none prior perception.
Besides, English is widely spoken within the country, minimizing language barriers. This also makes it easy for global clients to avail themselves of the Philippine KPO expertise for his or her knowledge-intensive tasks.
6. Economic stability
The Philippines has a robust economy with an annual GDP (Gross Domestic Product) growth rate of 8.3% in the primary quarter of 2022. This value is higher than that observed in other popular outsourcing destinations like South Africa (3%) and India (4.1%).
Moreover, Trading Economics predicts the country’s annual GDP growth rate to be 6.8% in 2023 and 6.5% in 2024.
This economic stability helps strengthen the local business climate and attracts more foreign investments, boosting the general outsourcing sector.
In consequence, each foreign firms and native clients can rest assured that their partnership with a Philippine KPO provider will probably be stable and fruitful.
Take a look at our article for more information on outsourcing to the Philippines.
Now, let’s take a look at the KPO tasks which can be mostly outsourced to the Philippines.
6 top KPO firms within the Philippines
Some knowledge-intensive business process tasks will be time-consuming, and outsourcing them can provide your in-house team more time to consider other essential tasks.
Listed below are six common KPO services within the Philippines:
1. Banking and finance
Banking and finance services are the leading knowledge process outsourcing tasks within the Philippines.
Knowledge process outsourcing firms provide underwriting, training and consulting, profit and loss, risk mitigation, and other BFSI (Banking, Financial Services, and Insurance sector) related services.
Additionally they offer industry-oriented finance services like strategic research, market research, analytics, and competitive intelligence monitoring.
2. Healthcare and medical services
In accordance with Statista, in 2021, there will probably be over 88.5 thousand nursing graduates and 28.8 thousand physicians across the Philippines.
Resulting from the abundance of expert employees within the sector, global healthcare firms outsource their KPO services to the Philippines.
Some common knowledge process outsourcing services within the country include health and wellness evaluation, research and development of healthcare services, genetic profiling, diagnostics, and more.
3. Pharmaceutical research and development
Many Chinese pharmaceutical firms have arrange their R&D within the Philippines as a consequence of low rental and operational costs and adept scientists.
Pharma KPO firms provide tasks like genetic profiling, diagnostics, oncology tests, HIV tests, and allergy tests.
4. Animation and design
The Philippines also attracts global clients searching for low-cost animation and design services as its animators and designers are known to supply incredible value. The principal markets for Philippine KPOs on this sector include america, Western Europe, Japan, and Australia.
Animation firms within the Philippines mainly deal with flash animation, website design, graphic and art design, mobile application design, and more.
5. Content writing and development
Two-thirds of the population within the Philippines is fluent in English, and it ranks 18th in English Proficiency. In consequence, it’s an excellent outsourcing solution for foreign firms on the lookout for help with their content writing and development work.
Probably the most commonly outsourced services include content production, digitization, editing, proofreading, and publishing.
6. Legal services
The Philippines has many KPO firms within the legal domain. Specialized knowledge processes outsourcing firms on this domain commonly offer legal and paralegal services like e-discovery, contract management, compliance, legal research, mental property, and due diligence.
Now, let’s take a look at the perfect knowledge process outsourcing firms within the Philippines.
6 best KPO service providers within the Philippines
Listed below are the six popular KPO service providers within the country:
1. SourceFit
SourceFit, headquartered in Metro Manila, is a KPO company specializing in legal, finance, and IT sectors. The corporate helps you to hire services on a monthly and hourly basis.
Key services
- Offers data collection and searching, organization, mining, and end-to-end management.
- Conducts insurance and risk analytics, fixed income research, equities research, and more for the BFSI industry.
- Guides you to form your individual corporate company within the Philippines and manages that entity in keeping with your specifications.
- Manages documents and legal transcription, coding, tagging, document discovery, etc., for legal firms.
2. FilWeb Asia Inc.
FilWeb Asia Incorporated, headquartered in Laguna, offers virtual process and IT (Information Technology) outsourcing services. The BPO company focuses on providing high-quality KPO or BPO services and great customer support.
Key services
- Offers highly expert and talented virtual assistants to assist with back door services.
- Provides low price writing and research services that ensure traffic growth.
- Offers a multi-talented and highly qualified team that serves in full compliance with standards.
- Offers flexible working hours and 24/7 customer support.
3. Outsourced
Outsourced, positioned in Quezon City, offers full-time distant staff offshoring and offshore staffing solutions to firms internationally. It’s an ISO (International Organization for Standardization) certified company that gives high standards for distant outsourcing services.
Key services
- Offers data entry, report management, business analytics, and other services.
- Prepares and proofreads legal documents.
- Recognizes and corrects any issues in software before deployment.
- Offers quality offshore payroll staffing services comparable to a dedicated payroll officer or payroll administrator.
4. Visaya Knowledge Process Outsourcing Corporation
Visaya KPO Corp., positioned in Makati, is an outsourcing company specializing involved center delivery, healthcare information management, and IT outsourcing. The KPO firm goals to be an extension of your organization for smoother collaboration.
Key services
- Helps with general ledger and asset management.
- Offers care coordination, higher patient navigation, and improved access to care.
- Provides you with outsourced coding through secure web-based processes.
- Offers claim management, HEDIS (Healthcare Effectiveness Data and Information Set) abstraction, medical coding, and billing.
5. Magellan Solutions
Magellan Solutions makes a speciality of customer support outsourcing for small, medium, and huge enterprises. This BPO firm is positioned in Metro Manila and in addition offers LPO (Legal Process Outsourcing), KPO, and business process outsourcing services.
Key services
- Assists you in back-office services involving human resources, digital marketing, payroll and accounting, and more.
- Gathers, stores, organizes, and maintains relevant information for your corporation with data entry, mining, and more.
- Captures information faster and turns it into actionable data, certificates, or documents.
- Helps call centers with services comparable to customer support, answering services, technical support, etc.
6. EnterPH
EnterPH is an outsourcing solution headquartered in Makati, providing all the assistance an organization might want to arrange within the country. They provide business registration, bookkeeping, payroll, and other services.
Key services
- Ensures adherence to Philippine laws, like Corporate Code, the Labor Code, and the Consumer Act.
- Offers payroll services to make sure employees receive proper salaries and mandatory advantages.
- Prepares and files tax returns and computes withholdings, VAT (Value Added Tax), and income tax liabilities.
- Guides firms during equity restructuring, declaring dividends, or converting debt to equity.
Irrespective of which KPO company you partner with, you might not know whether its employees are working as productively as you’d expect together with your in-house team.
The tool also tracks an worker’s idle time and, upon crossing a preset limit, shows an idle time popup – nudging them to resume working. You should use this time data to generate accurate invoices and avoid being charged for unproductive hours.
Wrapping up
Outsourcing KPO services to the Philippines can enable you to get monetary savings, provide access to a talented workforce, and enable you to scale faster.
Nevertheless, it is advisable find the correct KPO solutions for successful and profitable outsourcing. In this text, now we have listed just a few popular outsourcing firms offering high-quality KPO services.
Request a demo today and track your KPO firm’s activities from your organization!
