How to Source Back Office Outsourcers in the Philippines (BPOs) 

Thousands of Australian businesses are now taking advantage of outsourcing their back-office functions to Philippines BPOs for good reason.

Massive cost savings!

While there has been mixed success with moving front-office functions like call centres to the Philippines, back-office functions are tailor-made for offshoring.

Offshoring back-office functions to the Philippines enables you to tap into skilled labour at a fraction of the costs of doing the same function in Australia, with savings of at least 50%

Back-office functions that are easily outsourced to the Philippines include:

  • Accounting/bookkeeping
  • Payroll
  • Human resources
  • Claims and compensation processing
  • Logistics
  • Procurement
  • Customer administration, such as data entry for form approvals, etc. 

Benefits of Using a Back-office Outsourcer in the Philippines

Like call centre outsourcing, there are lots of benefits in outsourcing your back-office functions to the Philippines, including:

  • Significant cost savings of at least a minimum of 50% compared to the same functions performed here in Australia.
  • Access to highly skilled resources, e.g. you can afford to have CPA-qualified accountants, lawyers, degree-qualified HR practitioners, etc., for a fraction of the on-shore cost. 
  • Improved efficiencies as the outsourcers are experts in back-office functions and may also be able to introduce further efficiencies with experience in Robotic Process Automation (RPA) and more. 
  • Scalability as you can ramp up and down resources quickly.

Our free Outsourcing to the Philippines guide (no email required) provides more general information about outsourcing benefits and expert tips. 

How to Select a Philippines BPO for Back-office Services

Like front-office outsourcing such as call centres, choosing the right back-office outsourcer in the Philippines for your business can be challenging. 

Factors you might want to consider in choosing the right Philippines BPO for your business include:

  • Specialisation - There are already outsourcers with back-office experience in different verticals like finance, insurance, FMCG, Retail etc which can dramatically improve the speed to competency.
  • Local knowledge - Many of the BPOs already have Australian clients and are familiar with local laws, regulations etc, including GST & BAS, Superannuation,  Workcover etc) 
  • Scalability - Some providers are happy to provide solutions for one FTE (Full Time Equivalent) and others aren't interested in smaller volumes (e.g. under 10 FTE) - it's important to get the right fit. 
  • Reputation - Do you select someone with an established reputation and pay a little more or opt for a new starter hungry for your business?
  • Turnover - Even in the more professional roles, it's not uncommon to have high turnover, which leads to increased costs in training and recruitment and potentially lower quality. 
  • Technology - Do they have the latest technology that can help drive further efficiencies? From optical character readers and scanners to robotic process automation, there are lots of ways outsourcers can assist in reducing or eliminating headcount. 
  • Reporting - What type of reporting can you expect? How often?
  • Accessibility - Assuming you will be spending some time at the offshore centre, where it's located can have a big influence on your visiting experience. Traffic in Manila is notoriously bad, and travelling 10km can sometimes literally take hours. 
  • Commercials - What type of model do they use - per hour, per outcome etc.

There are also local nuances to consider in the Philippines with different regions like Makati, Ortigas, BGC, Eastwood and more in Manila to different cities and islands, including Cebu, Antipolo, Bacolod, Davao and Baguio, all offering different pros and cons. 

Also, a word of caution: most of the larger back-office outsourcers aren't interested in low volumes of work.

So, if you require sporadic work or low volumes, learn more about using Virtual Assistants in the Philippines

You may also be interested in viewing back-office outsourcers in Australia or India, each with its pros and cons.


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