LECTURE

• The Philippines BPO industry contributes nearly $30 billion to the economy each year
• It is estimated that 1.3 million Filipinos were employed in over 1000 BPO companies in 2019, and that figure is showing 8-10% growth every year
• It is estimated that the country holds 10-15% of the global BPO market
• The Philippines' BPO services are oriented to its former colonial power, the USA, and also serve Europe and nearer neighbors, such as Japan, New Zealand, and Australia
• Why the Philippines excels at BPO

  • High level of English language proficiency
  • Hospitable and courteous culture
  • World-recognized education system
• In 2001, the Philippine government put measures in place to support BPO companies to reduce unemployment and in 2021, that support has grown exponentially to curb the COVID economic collapse
• Multisourcing


  A strategic approach adopted by organizations to procure goods, services, or solutions from multiple suppliers rather than relying on a single source
• Multisourcing


  • Reduces the risk of dependence on a single vendor
  • Enables access to a wider range of expertise, technologies, and solutions
  • Can potentially lead to cost savings through competitive pricing among suppliers
  • Encourages innovation and continuous improvement
  • Provides flexibility to scale resources up or down based on changing business requirements
• Geographical Diversification


  • Engaging suppliers from different geographical regions can help mitigate risks associated with regional disruptions, natural disasters, or geopolitical factors
• Enhanced Service Levels


  • With multiple suppliers, organizations can leverage the strengths of each vendor to improve service levels, responsiveness, and customer satisfaction
• Multisourcing also presents challenges such as increased complexity in managing multiple vendor relationships, coordination issues, and potential conflicts among suppliers
• Effective vendor management practices, clear communication, and robust governance frameworks are essential to successfully implement and reap the benefits of multisourcing strategies
• Crowdsourcing


  A method of sourcing tasks, ideas, or information from a large group of people, typically via the internet
• Types and examples of crowdsourcing

  • Idea Generation
  • Microtasking
  • Crowdfunding
  • Knowledge Sharing
  • Citizen Science
  • Crowdsourced Innovation Challenges
• Idea Generation


  • IdeaScale
  • Internal suggestion boxes
• Microtasking

  • Amazon Mechanical Turk
  • CrowdFlower
• Crowdfunding


  • Kickstarter
  • Indiegogo
  • GoFundMe
• Knowledge Sharing


  • Wikipedia
• Citizen Science

  • Zooniverse
• Crowdsourced Innovation Challenges

  • InnoCentive
  • Kaggle
• Onshoring


  The process of bringing back or relocating business operations, manufacturing processes, or services to one's own country from offshore locations
• Factors driving onshoring

  • Cost considerations
  • Quality control concerns
  • Regulatory requirements
  • Geopolitical stability
  • Customer preferences
• Cost considerations

  • While offshore outsourcing may offer initial cost savings, factors like rising labor costs in offshore locations, transportation expenses, and communication costs can erode those savings over time
  • Onshoring can sometimes be more cost-effective in the long run
• Quality control


  • Some companies may experience issues with quality control and communication when working with offshore vendors
  • By onshoring operations, they can have more direct oversight and control over the production process, leading to higher quality products or services
• Regulatory compliance

  • Onshoring can help companies comply with local regulations and standards, which may be more stringent or complex when operating in foreign countries
• Geopolitical stability


  • Political instability, currency fluctuations, and changes in government policies in offshore locations can pose risks to businesses
  • Onshoring reduces exposure to such risks
• Customer preferences


  • Some customers prefer products or services made or provided domestically, which can drive companies to onshore production or services to cater to these preferences
• Onshoring can have positive impacts on the domestic economy, including job creation, increased tax revenue, and support for local businesses and industries
• Onshoring may also face challenges such as higher labor costs, limited availability of skilled workers, and potential disruption to existing supply chains
• The decision to onshore is influenced by a complex interplay of factors unique to each company and industry
• Onshoring


  Bringing business operations back to one's own country from offshore locations
• Advantages of onshoring

  • Direct oversight and control over operations
  • Improved communication between departments and teams
  • Compliance with local regulations and standards
  • Reduced geopolitical risks
  • Strengthening the domestic economy
  • Improved customer perception
  • Reduced transportation costs
  • Environmental benefits
• Direct Oversight and Control


  1. Allows companies to have direct oversight and control over their operations

  2. Can lead to better quality control, improved efficiency, and faster decision-making processes
• Improved Communication


  1. Proximity to the operations facilitates better communication between different departments and teams

  2. Can help in addressing issues promptly, reducing misunderstandings, and fostering collaboration
• Compliance with Local Regulations

  1. Operating within one's own country ensures compliance with local regulations and standards

  2. Reduces the risk of legal and regulatory challenges
• Reduced Geopolitical Risks

  1. Onshoring reduces exposure to geopolitical risks associated with operating in foreign countries

  2. Political instability, currency fluctuations, and changes in government policies can pose significant challenges for businesses operating offshore
• Strengthening the Domestic Economy

  1. Onshoring can stimulate the domestic economy by creating jobs, increasing tax revenue, and supporting local businesses and industries

  2. It contributes to the development of skills and expertise within the country, fostering innovation and competitiveness
• Improved Customer Perception


  1. Some customers prefer products or services that are made or provided domestically

  2. Onshoring can enhance customer perception and loyalty by demonstrating a commitment to local communities and economies
• Reduced Transportation Costs

  1. Bringing operations closer to the market can reduce transportation costs for raw materials and finished goods

  2. Can lead to cost savings and shorter lead times, improving overall supply chain efficiency
• Environmental Benefits

  1. Onshoring can also have environmental benefits by reducing the carbon footprint associated with transportation and logistics

  2. Shorter supply chains and reduced reliance on long-distance transportation contribute to sustainability efforts