The 12-Step Offshore BPO Agency Philippines Capabilities Model

Why finding an offshore BPO agency in the Philippines to meet client goals is crucial to BPOs success.

Discussed here are 12 capabilities to evaluate your offshore BPO agency in the Philippines. These are findings of PITON , an offshore BPO agency in the Philippines, on BPO agencies capabilities in the local setting. The details on the findings of the research, supported by case studies, can be read in white papers published by PITON.

There have previously been an assortment of ways to analyze outsourcing goals, and PITON has developed one that can be adopted as a model for identifying the capabilities that need to be thoroughly assessed by the client. As the offshore BPO outsourcing market grew over the past few years in the Philippines, the community of offshore BPO agencies in the Philippines also increased and became quite diverse with locally based specialists in particular applications and industry sectors, as well as several offshore BPO outsourcing to the Philippines. In this market environment, client organizations are challenged to identify an offshore BPO agency whose capabilities best meet their needs. Recognizing the importance of building a long-term relationship with the right offshore BPO agency, strategic buyers asked PITON to focus research on the BPO market in the Philippines and help customers identify what is most important to evaluate in their offshore BPO agency.

The research sought to identify any common mistake by customers in evaluating offshore BPO agencies in the Philippines. Based on the research in the offshore BPO outsourcing to the Philippines market, PITON found out that clients made mistakes looking at offshore BPO agencies’ resources such as physical facilities, technology, and workforce composition in the Philippines. Rather, they should have focused more on the offshore BPO agencies’ capabilities to effectively manage and deploy those resources for the customers’ benefit. For example, as PITON described in the white paper, many senior executives tend to ask offshore BPO agencies in the Philippines for proof of workforce quality such as resumes, average years of experience, turnover rate, and certifications. However, this evidence will not effectively differentiate offshore BPO agencies. Instead, customers should ask offshore BPO agencies in the Philippines for evidence that the workforce is empowered, satisfied, and customer-oriented. Clients need to ask about the offshore BPO agencies in the Philippines behavior management capability: How does the offshore BPO agency deliver service excellence through a customer-focused ethos? How does an offshore BPO agency in the Philippines orient new employees toward their standard work ethic? How does an offshore BPO agency in the Philippines reward and encourage capable, skilled and competent employees? These are the right questions to ask to get satisfying answers.

There are also examples where customers focus on the wrong issues and frequently ask for evidence of excellent offshore BPO agency people in the Philippines’ technology area because they have identified technology as a key proponent of the transformation required in the offshore BPO outsourcing to the Philippines market. This assessment does not distinguish between offshore BPO agencies because all credible offshore BPO agencies in the Philippines have excellent people. But an offshore BPO agency who instills in its technology people an ethic of rapid and regular delivery of benefits to the business will deliver a very different experience to the client.

What kind of competencies should a customer look for in an offshore BPO agency? Well, to greatly varying degrees, every offshore BPO agency in the Philippines has competencies in three main domains: delivery, transformation, and relationship. An offshore BPO agency in the Philippines’ delivery competency is the capability to respond to the customer’s requirement for day-to-day operational services. Transformational competency determines the extent to which the offshore BPO agency is equipped to deliver on the clients need for service improvement and lower costs in the Philippines. Relationship competency determines the extent to which the offshore BPO agency in the Philippines is willing and able to deliver the win-win relationships that more successfully align client and agency goals and incentives over time.

PITON’s Offshore BPO Agency in Philippines Supplier Capabilities Model was based on these three competencies and identified the 12 capabilities that underpin the achievement of these three target competencies. The model provides a tool to help clients evaluate potential BPO agencies and may also help offshore BPO service providers in the Philippines assess themselves and their relative strengths versus the competition.

Another question that was asked of PITON was would one of the 12 capabilities be more important than the others? PITON’s research found that the main differentiators between success and failure in an outsourcing relationship was the individuals who were leaders of the offshore BPO agencies in the Philippines’ account teams. Leaders must operate as the CEOs of the relationship rather than as traditional account managers now delegated to the business management capability. Offshore BPO agencies in the Philippines’ leaders must also have significant clout within their parent organizations to mobilize resources on behalf of their clients.

How does a buyer move from evaluating offshore BPO agency in the Philippines capabilities to achieving performance? Choosing a capable offshore BPO agency in the Philippines is not enough to deliver performance. The research that supports our model suggests three imperatives for companies that wish to assess value through use of the BPO services market. First, to identify the competencies they should be accessing, client firms should think carefully about their likely future needs from any process to be outsourced. The decision to choose a particular BPO agency should be guided by the 12 capabilities in our model. And it is essential for the client firm to stay involved rather than step aside in the belief that everything is up to the offshore BPO agency in the Philippines.

PITON believes that the global sourcing of business services is prompting a fundamental shift in types of IT skills and capabilities needed in the United States. PITON’s research team collects and analyzes skills needed to manage offshore BPO agencies in the Philippines. Through these research projects, we hope to better meet the needs of potential clients.

To learn more about our industry-specific BPO capabilities please contact us by calling +1-310-844-7805 or by filling out our inquiry form. We look forward to hearing from you.