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’. Many still want to know, “What is a BPO and call center?”

The world of IT-BPO began from one contact centre, 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 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 the brand development, operational excellence, and other major business functions.

Forms of BPO

There are basically two forms of BPO namely;

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

Types of BPO in Philippines

Philippine is blessed with six types of BPOs, namely;

Call Center Services

what is bpo and call center?

One of the most patronised types of BPO philippines are call centers. These call centers offer both vocal and non-vocal service for market intelligence, lead generation, telemarketing, inbound and outbound sales, customer care, and technical after-sales support.

Data Entry Services

types of BPO

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

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

Information Technology (IT) Services

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

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. Their services include the following:

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

Procurement Services

types of BPO

People who specializes in procurement services manages a company’s buying costs, supplier relationships, and other purchasing requirements. In addition, they also provide transaction processing support and supplier selection, monitoring, and assessment.

Final Thoughts – BPO and Outsourcing

BPO is practically a well designed alternative for companies that don’t have enough funds, man power, or skills to run their business. Many would agree with me, as was earlier claimed, that BPO is a saving grace for most international businesses.

BPO and outsourcing allow the company owner to cut down the cost of labor, by outsourcing these labor costs to foreign countries or less expensive areas. Not only does this contribute to the global economy, outsourcing gives wealth to these lesser countries as a form of investment. As America is slowly starting to realize, the mass outsourcing and utilization of BPO in foreign countries has led to growth of these foreign entities.

Take advantage of outsourcing and BPO while the cost of this outsourced employment is still competitive.

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