What Is BPO and Call Center? Outsourcing in the Philippines | Inquirer

What Is BPO and Call Center? Outsourcing in the Philippines

/ 01:15 AM January 30, 2019

The IT-BPO industry is the saving grace for a lot of international companies. If not for Business Processing Outsourcing(BPO), the likes of—Alibaba, Basecamp, AppSumo, Expensify, Github and Google—wouldn’t grow beyond their ‘parent country’. What is a BPO and call center?

The world of IT-BPO began from one contact center, the Accenture Global Resource Centre. It was established in 1992 by Frank Holz. The growth of IT-BPO was catalyzed by the enactment of the special economic zone act.

This act is key to the development of IT-BPO in the Philippine: it ensured that, in the lower area conditions, developmental policies, government aids, and tax incentives were met. The Philippine zone authority attracted more foreign investors and inevitably improved the national economy.

What is BPO and Call Center?

BPO is the short form of Business Process Outsourcing. It’s a term used for all legal agreements that allow a third-party agent to perform certain non-core responsibilities such as— customer services and human resources management— in exchange for money.

Outsourcing reduces the initial cost and increases the work efficiency by allowing the company to focus on brand development, operational excellence, and other major business functions.

Forms of BPO

  • Horizontal BPO: This form of BPO focuses on function-based services offered throughout a lot of businesses.  IT, HR, and procurement.
  • Vertical BPO: industry-based services that focus on a specific industry. legal, finance, and healthcare.

Types of BPO in the Philippines

Philippine is blessed with six types of BPOs, namely;

BPO  Call Center Services

what is bpo and call center?

One of the most patronized types of BPO Philippines is call centers.

These call centers offer service for market intelligence, lead generation, telemarketing, inbound and outbound sales, customer care, and technical after-sales support.

BPO Data Entry Services

types of BPO

Data entry services are a type of BPO that helps companies handle documentation, data capture, including filing and processing of forms, and compilation, creating databases, and updating online catalogs.

BPO Human Resource (HR) Services

This is the type of BPO that handles a vast range of recruitments, payroll services, and employee management.

Wages and withholding income tax computation

  • New worker onboarding and training
  • Employee document administration and management
  • Searching and screening job candidates
  • Compensation and rewards management

BPO Information Technology (IT) Services

This type of BPO specializes in IT infrastructure and IT-enabled services. These IT services include software development, help desk support, network, and server administration, and data center management.

BPO Financial and Accounting Services

what is bpo and call center?

This is the type of BPO that helps companies handle their financial and accounting BPOs.

BPO Services Include:

  • Preparation and Tax reporting
  • Accounts payable and receivable management
  • Bookkeeping and accounting
  • Financial analysis, auditing, and reporting

BPO Procurement Services

types of BPO

People who specialize in procurement services manage a company’s buying costs, supplier relationships, and other purchasing requirements.

BPO provides transaction process support and supplier selection.


BPO is a well-designed alternative for companies that don’t have enough funds, manpower, or skills to run their business.

BPO and outsourcing allow the company owner to cut down labor costs, making BPO a great resource for most international businesses.  As America is slowly starting to realize, the mass outsourcing and utilization of BPO in foreign countries have led to the growth of these foreign entities.

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