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How to Spot a Scam BPO Service Provider in the Philippines: A Guide for Australian Businesses

Blog, BPO Industry, Offshore Staffing, Offshoring in the Philippines, Outsourcing / By DBOS

Outsourcing to the Philippines remains a strategic move for Australian companies aiming to enhance efficiency, reduce operational costs, and access a skilled talent pool. However, recent events have highlighted the importance of due diligence when selecting a Business Process Outsourcing (BPO) partner.

A notable incident involved the shutdown of an alleged scam BPO operation in Cebu City IT Park. Authorities discovered that the company operated without proper business permits and abandoned its office following a viral exposé. The operation reportedly defrauded over 800 victims of a total of $44 million (roughly P2.5 billion in today’s rates).

This incident underscores the critical need for businesses to thoroughly vet potential BPO partners. Here’s how to identify red flags and ensure you’re partnering with a legitimate and ethical BPO provider.

Red Flags: Identifying a Scam BPO Provider

1. Unrealistically Low Pricing

Scam BPOs often lure clients with prices that seem too good to be true. While cost savings are a benefit of outsourcing, extremely low rates can indicate subpar services or fraudulent operations.

Tip: Compare pricing with industry standards and be wary of offers that significantly undercut the market.

2. Lack of Proper Business Registration

Legitimate BPOs are registered with the Philippine Securities and Exchange Commission (SEC) and have the necessary business permits. The Cebu incident revealed that the company operated without a valid business permit, leading to its closure by authorities.

Tip: Request and verify the company’s registration documents and business permits.

3. No Verifiable Client Portfolio

Reputable BPOs showcase their client successes and testimonials. Scam operations often lack a verifiable client list or present fake testimonials.

Tip: Ask for case studies and contact references to confirm the BPO’s track record.

4. Vague Contracts and Absence of SLAs

Scam BPOs may provide generic contracts lacking specific deliverables or Service Level Agreements (SLAs).

Tip: Ensure contracts detail performance metrics, data protection policies, and clear termination clauses.

5. No Physical Office or Untraceable Address

Some fraudulent BPOs operate from undisclosed locations or virtual offices. In the Cebu case, the office was found abandoned, with equipment left behind.

Tip: Request a virtual tour or visit the BPO’s office to confirm its physical presence.

6. Inconsistent Communication

Frequent changes in contact personnel, unprofessional communication, or reluctance to engage in video calls can be warning signs.

Tip: Establish clear communication channels and assess responsiveness during initial interactions.

7. Negative Online Presence

Search for news articles or online discussions about the BPO. The Cebu scam was exposed through social media and online platforms, highlighting the importance of online reputation.

Tip: Conduct thorough online research to uncover any negative reports or discussions about the BPO.

Choosing a Trusted BPO Partner: What to Look For

When selecting a BPO provider, consider the following attributes:

Transparent Operations: Clear business registration, compliance with local laws, and open communication.
Proven Track Record: Documented success stories and positive client testimonials.
Robust Infrastructure: Secure IT systems and a physical office with modern facilities.
Cultural Alignment: Understanding of Australian business practices and communication styles.
Flexible Engagements: Customizable services and contract terms that suit your business needs.

Why Australian Businesses Trust Dynamic Business Outsourcing Solutions (DBOS)

Dynamic Business Outsourcing Solutions (DBOS) stands out as a reliable and ethical BPO partner for Australian companies. Here’s why:

Australian-Owned and Operated

DBOS is 100% Australian-owned, ensuring a deep understanding of Australian business requirements and cultural nuances.

Transparent and Compliant

DBOS maintains full compliance with Philippine business regulations, including SEC registration and tax compliance.

State-of-the-Art Facilities

Operating from a fully equipped office with robust IT security protocols, DBOS ensures data protection and operational efficiency.

Customised Solutions

DBOS offers tailored outsourcing solutions across various domains, including customer service, IT, finance, digital marketing, and back-office support.

No Lock-In Contracts

Believing in performance-based partnerships, DBOS offers flexible engagement terms without long-term commitments.

Take the Next Step with Confidence

The recent scam incident in Cebu City serves as a cautionary tale for businesses considering outsourcing. By partnering with a reputable and ethical provider like DBOS, you can leverage the benefits of outsourcing without compromising on integrity or quality.

Ready to explore outsourcing solutions tailored to your business needs?

Visit www.dbos.com.au to learn more and schedule a free discovery call.

Outsourcing to the Philippines: Managing the Timezone Differences

Outsourcing in the Philippines / By DBOS

Majority of Philippine outsourcing companies offer to work almost the same office hours as their clients. They will work according to your timezone, whatever it may be. This is one of the many attractive propositions to clients located in Australia and New Zealand.

A normal and comfortable work shift in the Philippines would-be 7:00 AM to 4:00 PM. Without the dreaded Metro Manila traffic and with ample preparation, Filipino staff could comfortably come in as early as 6:00 AM and stay late until 5:00 PM. Sometimes, to avoid the rush hour, some employees choose to stay even a lot later.

More and more Australian and New Zealand businesses choose to outsource to the Philippines, instead of other known outsourcing destinations.

The timezone gap between the Philippines and these countries are minimal which allows a more real-time communication and interaction between the onshore manager and their Filipino staff. This is extremely important in building a good working relationship, better collaboration and making your Filipino staff feel like they are part of the team.

Filipinos are also very family-oriented so working a day-shift allows them not only to live a healthier life but also spend more time with their families and friends.

But this doesn’t mean that companies in Europe and North America are in the disadvantage. Many of the BPO companies now have higher flexibility in providing services in different timezones.

Here’s a quick overview of the time differences between the Philippines and some of the key cities in AU and NZ:

In Australia, New South Wales, Victoria, South Australia, Tasmania, and the Australian Capital Territory observe Daylight Saving Time (DST). Whilst Queensland, the Northern Territory and Western Australia do not observe DST.

Daylight Saving Time starts when the local standard time is about to reach Sunday, 4 October, 02:00:00. The clocks are turned forward 1 hour to Sunday, 4 October, 03:00:00 local daylight time instead. It ends when the local daylight time is about to reach Sunday, 5 April, 03:00:00. The clocks are turned backward 1 hour to Sunday, 5 April, 02:00:00 local standard time instead.

During DST, the clocks on the Chatham Islands are also turned forward 1 hour from UTC+12:45 to UTC+13:45. It starts on the last Sunday of September and ends the first Sunday of April, the same as mainland New Zealand.

Here at DBOS, not only that we personalise and make offshore staffing an affordable option for startups and expanding businesses, but we also make collaboration and communication with our Australian and New Zealand partners very simple.

Our remote management system provides our clients with full control and visibility to their Philippine-based operations using their chosen tool and system. This addresses the pain points when working on a different timezone and with a geographically separated team.

As labour costs in Australia and New Zealand continue to rise, startups and expanding companies find the low wages and minimal timezone gap in the Philippines attractive and practical. In fact, the Philippines has overtaken India as the leading call centre country. This subsector added around 10% in the country’s economy in 2015. The expansion of the BPO industry to other provincial regions such as Cebu and Davao was also a key factor for the country’s continuous growth. You can learn more about the best outsourcing locations in the Philippines on one of our previous blogs.

Back-Office Outsourcing: How to Remain on Top of a Competitive Marketplace

Offshore Back Office, Outsourcing in the Philippines / By DBOS

When a company wants to stay on top or improve their competitive position in a highly competitive market, they typically look to doing something internally to transform their position whether it’s learning a new technology, developing an innovative process, or even adopt a new business model.

These traditional strategies for enhancing competitiveness are sound but not the only option. More and more organisations turn to outsourcing to improve the competitive landscape, reposition their companies, or restore how they do business.

Thus, small and medium-sized enterprises (SMEs) are trying to find the most suitable offshore back-office provider that will help them achieve success.

With all the tasks available for outsourcing, and a lot of choices, finding the most equipped provider for your service is not as easy as it sounds. So, to keep up with the competition, most importantly with the industry giants, outsourcing providers have become very aggressive.

The demand for back-office outsourcing services

On a recent study, it is said that the outsourcing market is expected to see an annual growth rate of 7.4% in the next 6 years. Partially, this is because businesses are looking at becoming more global, complex, and digital to keep up with the trend. So, the initial step is to adopt the latest developments and work on better strategies to properly outsource.

Along with the demand for call centre agents, other popular services today include back-office outsourcing services. Based on the latest data, 74% of companies outsource IT-related services, 52% on HR functions, 43% procurement, and 39% on financial services.

But first, how well do we know back-office outsourcing?

What is back-office outsourcing?

Back-office outsourcing is the process of delegating non-customer facing operations to a third-party supplier. The most common back-office services outsourced by companies are administrative tasks that require a certain level of skill.

Most startup entrepreneurs venture in fields that they are good at. However, to make the business running, there are other positions that must be occupied too. Some of which include; HR, payroll, accounting, marketing, and other support tasks.

Some companies try to do these tasks themselves but eventually didn’t get the results that they wanted. Most of the time, they ended using up all their time and fail in focusing on their core competency.

Why do businesses choose to outsource?

Both small and big companies have been outsourcing for a long time. Their number one reason remains to be for cost-savings. But, there are a lot more reasons to consider aside it. With outsourcing, businesses are not only expected to save a huge heap of money but also gain more time to focus on their main goal. Other entrepreneurs also take this time to make sure that they use their free hand in creating better strategies to expand their businesses.

Most of the time, there are telltale signs that prompt you to outsource, especially when you need it most, watch out for those.

Conclusion

Given the overwhelming advantages of outsourcing, back-office outsourcing is becoming increasingly strategic and even a game-changer.

Back-office outsourcing is changing how business is done. It is a powerful way to improve business focus, achieve better resource utilisation and allows the business to gain a competitive edge in the industry.

Now, we here at DBOS believes that if it is not your cream of the crop, then you should delegate it to the experts. And as an outsourcing company in the Philippines that holds a reputation for providing the best services to all our clients, we make sure to pick only the best talents. Our main goal, to help our clients grow their businesses while saving up to 70% on their labour costs.

Want to know more? Contact DBOS today and get a free consultation with our CEO/Founder.

Top 4 Best Outsourcing Locations in the Philippines

Outsourcing in the Philippines / By DBOS

Over the years, the Philippines continuously make headlines and breakthroughs in the world of outsourcing. In 2010, the country was then declared as the world’s BPO capital with 525,000 employees in call centres and $8.9 billion in revenue. After a year, numerous BPO companies started to open up their businesses in strategic locations inside and outside the Metro. That specific year started the progressively exciting year for the outsourcing industry.

With numerous contenders on the business processing outsourcing industry around the world, the Philippines soared high and has reached its peak in 2015. Formerly known as “the sick man of Asia”, the country immediately rose as the “tiger economy of Asia”, with outsourcing as its most income-generating industry.

However, not all foreign investors were impressed by this feat and some were even clouded by second thoughts. But then, a massive number of startup companies suddenly started to take risks and experience the perks of outsourcing their services to the Philippines.

PEZA special economic zones

Now, not just anywhere in the Philippines is a great location to outsource. There are strategic business districts in the country called PEZA Special Economic Zones. And out of all the industries under these economic zones, the BPO industry has benefited the most from it.

To date, there are 379 operating economic zones in the country which is mostly comprised of IT parks and centers. Most of them are located in Metro Manila, specifically in Eastwood, Cubao Quezon City, Makati, and Ortigas.

To build more of these economic zones, currently, there are 139 under development, 99 of which are IT parks and centres.

If you would notice, the first PEZA economic zones are all strategically located in places most accessible to the general public. This is also because most career-driven individuals move into the Metro as there are better opportunities than in provinces on the country. However, as more people move to the capital, it has become highly congested. To veer away from the already overpopulated Manila, more IT parks and centres are being built outside the capital. This move attracts more companies to invest in the country while boosting the economy, as well as tourism.

4 Best Locations in the Philippines to Outsource

Aside from the numerous benefits that companies can get from starting their BPO businesses in the Philippines, there are PEZA incentives. But to get those privileges, entrepreneurs should be familiar with the strategically-located economic zones that PEZA approves. Here are some in the Metro:

Cubao, Quezon City

locations-cubao — Photo from ASYA Design.

Locations highly matter for businesses, especially for the BPO industry. Not only it is a great advantage for clients and customers, but also the employees.

Cubao has been a famous BPO hub since the peak of outsourcing because of its accessible location that entices great clients and talents. Since then, BPO companies in the area have been randomly popping up everywhere. And to continuously meet the ever-increasing demand of PEZA-accredited corporate offices, The Spark Place was built. Following the long line of BPO companies in the building, it also serves as home to DBOS for 5 years.

Nonetheless, there are only a few certified zones in the area. Some of which also includes the Araneta Center Cyberpark which has 2 towers with 33 floors of office space each.

Eastwood City

Eastwood City is a special case among all strategic locations for outsourcing in the Philippines. It is the first IT park and the first project to be granted special economic zone status by PEZA. Although technically, Eastwood City in Libis is still a part of Quezon City.

In addition to that, Eastwood is not just a business district, it is also a residential community that allows clients from keeping their home close to their business. With this, it has become a top dollar-earner in the Philippines over a couple of years. Accessibility wise, the ride from Eastwood to Cubao only takes a couple of minutes. If you live in Eastwood, there is a possibility that you might never move out because everything that you need is within its 18.5 hectares. High-end malls, entertainment complex, sports hub, and many more are provided in that location alone. These attractive features are the biggest reason why DBOS choose this location to build another office that will be launched this year.

Ortigas Center

Ortigas Center is located within the joint of Pasig, Mandaluyong and Quezon City. It is a central business area that is highly considered as the second most important business district that after Makati. Like other business districts in the Metro, it is home to many shopping malls, office spaces, and condominiums. Established for a very long time, Ortigas Center has been the headquarters for one of the largest and most diversified conglomerates in the country. It is also where one of the largest malls in the nation – SM Megamall is located.

The transportation to and from Ortigas Center is very easy as it is surrounded by the streets of Ortigas Avenue, EDSA, C-5 Road, and Shaw Boulevard. However, traffic is very bad in this area.

Makati CBD

As the leading financial district in the country, Makati is where the Manila skyscrapers are found. The country’s tallest office building is also in this area and is known as one of the most vibrant commercial districts in Southeast Asia. More than a hundred multinational companies listed in Forbes Global 2000 have also built their regional headquarters in the CBD.

Years ago, working in Makati was a prestigious achievement for job-hunting people. But as time changes, the Makati area has become one of the worst traffic-congested places, especially during rush hours. And although opportunities are there, talents are backing out because their travel time to and from work almost takes half a day.

Conclusion

If you choose to outsource in the Philippines, find a company that value things like travel time, locations-wise, accessibility to both clients and employees, as well as other factors that can affect on how your business will be impacted directly or indirectly.

With DBOS, you don’t have to worry about things like such. Our head office is strategically located in a PEZA-certified building – Spark Place Cubao and our upcoming office will open its doors in Eastwood – two of the most accessible business districts in the Metro. As we highly value the convenience of both our staff and clients, we only offer dayshift schedules. On top of that, we made sure to get the right talent as we help them save up to 70% on their labour costs.

Want to know more about our services? Contact DBOS today and get a free consultation with our CEO/Founder!

8 Fundamental Benefits of Embracing Big Data in HR

Human Resources, Outsourcing in the Philippines / By DBOS

The HR department in any organisation is pivotal. It plays one of the most important roles in a business because it handles strategic planning, company image, acquiring the right talents, and hiring. With all the tasks that HR personnel should do, the introduction of using big data has become a huge breakthrough in running the department.

What is Big Data?

According to SAS, the term “big data” refers to the data that is so large, fast or complex that it’s difficult to process using traditional methods. The idea was there for a very long time, but this concept gained momentum in the early 2000s.

Doug Laney, an industry analyst, enunciated the importance of big data as the three (3) V’s.

1. Volume: In businesses, data could be collected from a variety of sources including transactions, smart devices, videos, documents, and so much more. In previous years, storing big volume data takes up a lot of space on external hard drives and backups on other storage devices. Nowadays, there are affordable online platforms that could ensure security for any volume of data.

2. Velocity: The data streams that businesses acquire comes at an unprecedented speed and must be handled in a timely manner.

3. Variety: There are a huge variety of data. Whether structured or unstructured text documents, databases, emails, videos, audios, graphics, and others, the big data sure can handle it all.

Why is Big Data Important?

In today’s innovative world, using big data has become highly important. Initially, it doesn’t just focus on how much data you have, but what you can do with it. While all of those could be overwhelming to analyze and manage, big data enable cost reductions, time reductions, new product development, optimized offerings, and smart decision making.

While all those important aspects of acquiring big data alone is a huge feat, let us also find out what’s in it for the HR department.

8 Benefits of Embracing Big Data in HR

Traditionally, the HR department is one of the busiest and most cluttered places in an office setting. Papers piled up on desks and file cabinets lined up everywhere are just normal during this time. Sorting all those files take up a lot of energy, manpower, and time. However, technological advances came fast and most businesses became reliant on outsourcing.

Moving forward, a lot of advanced years came by and the usage of online storage became a hit. Companies are suddenly going paperless and fewer people are needed to run a department while most are utilised for other roles.

Suddenly, HR outsourcing in the Philippines became famous and even the smallest entrepreneurs use this practice. To learn more about the usage of big data in human resources, check out these benefits:

1. Improving strategic workforce planning

Big data has the ability to sort all candidates by their specific skill sets, work arrangement options, work experience and other categories. This help businesses tap into a very precise talent pool and immediately exclude other candidates that do not pass the qualifications. By doing this, the HR department can save more time to look at a broader talent pool.

2. Predicting hiring needs

One very specific benefit of big data in HR is that it helps employers improve their quality of hire. It also strengthens employee retention and better predicts hiring needs. By mining employee data and identifying their pattern of skills, performance, education, professional experience, and more, then hiring the right talent would be so much easier.

3. Improving retention

According to a relevant HR study, the company culture hugely affects employee retention. With big data, HR can now immediately identify if a candidate and their personality align with the company values and goals. For an organisation’s long-term survival, employee retention is the key.

4. Providing hidden talent insight

The use of big data in HR lessens the actual number of staff needed in the department. So, instead of employing a whole HR department, the company can actually cut the number and have them do other things that will help with their career growth. Now, this is where hidden talents could be discovered.

5. Enabling decision-making without bias

By implementing big data in HR, decision-making would be quicker and simpler. There won’t be any issues of being biased, because all of it will be based on actual numbers. And so, the HR people will be able to accurately track the demographics and performance of each and every employee.

6. Automating your processes

Embracing the use of big data in HR allows you to use tools to automate your processes. On the other hand, your human resources team will be more available for strategic planning, reaching out to employees, and finding more ways to engage and support them.

7. Tapping into shared experiences

Being exposed to HR trends in other industries allows employers and their staff to get better ideas. It will also aid the HR leaders to create strategies that would best fit the organization they belong to. This drives new big data analytics and AI-powered solutions onto the market.

8. Unlocking powerful ideas

As analysing data can give you other points of view to focus on, it can also unravel more ideas that could later turn into an opportunity that will change the way companies handle their HR.

Conclusion

The implementation of big data in most companies is an advanced move that will help the business reach, understand, and target their supposed audience. On the other hand, the HR department is indeed a huge beneficiary of big data.

So if you’re thinking about working with an outsourcing provider who shares your goals and aspirations, check out DBOS and get to save up to 70% on your labour costs!

5 Reasons Why You Should Outsource to the Philippines

Outsourcing in the Philippines / By DBOS

Before 2020 started, an international market business insider listed the Philippines as the second-best country to outsource in the world. Despite the hundreds of countries that accommodate all kinds of outsourcing, the Philippines remain thriving.

Each country that serves as home to hundreds of outsourcing companies has a special subset of skills and expertise. Although they can probably take on a few tasks beyond their core strength, it would be more strategic to assign it to someone with in-depth knowledge and experience on the matter itself. According to the same survey, almost 80 per cent of businesses feel good about their outsourcing decisions and are expected to continually do so in the coming years.

Once dubbed as the Call Center Capital of the World, the Philippines has been considered as the number one source for outsourced agents in the world. So, if you’re contemplating whether to outsource your services to the Philippines or not, you should check out these 5 reasons why.

5 Reasons Why You Should Outsource to the Philippines

Every country has its own reasons why foreign companies decided to outsource their non-core tasks with them. While it could be because of the most obvious of reasons, the Philippines remains to be one of the most outsourced countries in the globe.

1. Filipinos are highly proficient in English

There is no doubt that the Filipino people are well-versed in the English language. Even the local vendors and drivers can keep a normal conversation going. Aside from that, the media also utilise the English language in news reports, newspaper articles, magazines, and more.

Students have also learned it in school as early as 2 years old. At the same time, their teachers speak a mix of English and the native language when communicating. Even in meetings, events, and formal written documents. Although not formally declared, English is considered as the second language in the Philippines.

According to the English Proficiency Index, the Philippines ranks 20th out of 100 countries that proficiently speak the language, and is 2nd in Asia.

2. Labour costs are cheaper

Outsourcing in the Philippines has one outstanding privilege that foreign businesses take advantage of, the low labour costs. They enjoy almost up to 70% less on their wage costs compared to what they might be spending if they opt to do nearshoring. Also, they have high regards to the Filipino quality of work and their ethics as professionals. So, instead of paying someone locally for the same skill, it is better for them to outsource that talent and pay less. It might be just a little amount for now, but when accumulated, could be more than enough to grow their businesses.

3. Almost 3 decades of outsourcing

As the saying goes, “experience is the best teacher”, the Philippines has a 3-decade history of outsourcing. Starting from 1992, when the first contact center was built in the country, slowly, the business practice flourished. Because of the surge, the outsourcing industry in the country hit the all-time high rank and was recognised as the top outsourcing destination in the world. Until then, the Philippine government came into the picture and supported the rise of the BPO sector. As it contributes a huge chunk to the country’s economy, they made sure to protect it by enforcing laws and policies that will attract more investors.

4. Strict data privacy law

“To protect the fundamental human right of privacy, of communication while ensuring free flow of information to promote innovation and growth” is the main objective of the Data Privacy Act of 2012. It is designed to protect the client’s data by maintaining confidentiality, integrity and availability of their data while ensuring a free flow of information. It was established to attract more foreign investors and businesses to move to the country.

5. Filipinos are hardworking and talented

The Philippines has a highly educated and diverse talent pool which was evident in almost 200,000 university graduates each year. This number equates to the country’s 97% literacy rate. And in every field of work, the Filipinos are popular because of their culture of hard work and perseverance to achieve excellence.

Conclusion

Outsourcing in the Philippines could be your best move this year to help grow your business. You just have to make sure to meet a great outsourcing partner that will walk with you through success. Find an outsourcing provider who has the same goals and aspirations as you. If you’re having a hard time finding one, check out DBOS and get to save up to 70% on your labour costs today! Contact us today and get a free consultation with our CEO/Founder.