Glossary

The most comprehensive list of business process outsourcing related terms and definition.

PEZA

Definition

What is PEZA?

The Philippine Economic Zone Authority (PEZA) is an agency that provides assistance to foreign entities in facilitating businesses within the PEZA Special Economic Zones. Created in 1995 under the Republic Act 7916, PEZA is often beneficial to the business process outsourcing (BPO) sector.

In order to avail of the agency’s incentives, an enterprise must register with PEZA and locate their operations in one of the PEZA zones, buildings, or IT Parks. As of November 30, 2017, the agency has over 370 economic zones across the country.

Benefits of PEZA registered companies

Registered enterprises may avail of incentives such as income tax holidays (ITH) of up to six years, a special tax rate of 5% of gross income after ITH, tax-free and duty-free importation of machinery equipment, and exemption from expanded withholding tax.

They also qualify for simplified import-export procedures, Special Non-Immigrant Visa with Multiple Entry Privileges, and extended visa assistance to foreign nationals and their spouses and dependents. Outsource Accelerator provides you the best PEZA-registered outsourcing companies in the Philippines, where you can save up to 70% on staffing costs.

The Philippine Economic Zone Authority (PEZA) is an agency that provides assistance to foreign entities in facilitating businesses within the PEZA Special Economic Zones.

PEZA

Outsourcing FAQ

What is an Outsourcing Company?

What is an outsourcing company?

An outsourcing company handles various supporting processes of contracting companies. These supporting processes are activities that are not central to the company's business but cannot be done away with. Examples include payroll, customer service, accounting, IT, etc.

A great outsourcing company is someone that has proven expertise in the process to be outsourced, that has access to resources and technology not otherwise available to the contracting company. For a contracting company to fully leverage the advantage of outsourcing, it is preferable that the outsourcing company will have it's own key performance indicators to help drive innovation and growth for the contracting company.

Outsourcing companies in the Philippines

Outsourcing evolved a lot during the past decade, it is no longer all about customer service outsourcing. Nowadays, it is very common to outsource other functions such as finance & accounting, lead generation, software development or digital marketing. Outsourcing is also applicable to any industry and any business size, as long as the job can be done in front of a computer, then it can be outsourced.

Outsource Accelerator's directory lists over 700+ outsourcing companies in the Philippines. All of these are carefully selected for innovation, expertise, and technology that will benefit our clients. We also provide you with guidance on how to maximize the potential that such expertise gives you in growing your business.

What is a Call Center?

What is a call center?

A Call center may refer to a physical center where an outsourcing company conducts various customer contact services that act as a front liner to customers. Call centers comprise of a team of agents who are trained for the product or service being offered. A call center may also refer to a type of BPO setup where a client gets a remote team to handle its customer service hotlines and attend the client’s customers in its behalf.

In call centers, agents often does inbound or outbound call handling. The former talks about customer service, order processing or technical support. The latter focuses more on telemarketing, promotions or selling. In this setup, it is the call center agent who initiates the call to potential customers.

Call center outsourcing

A call center employs agents who act as representatives of their client’s behalf to deal with questions, concerns, and complaints of the customers. Aside from that, call centers can also function as sales hotlines and telemarketing teams. Outsource Accelerator provides you the best call center outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost.

What is 13th Month?

What is the 13th month bonus?

The 13th month pay is a unique feature of the Philippine labor economy. This 13th month is paid just prior to Christmas, and is designed to support employees throughout the Philippine holidays.  The benefit paid to all qualifying employees in the Philippine private sector with at least one month of service rendered to their respective companies. This pay is equivalent to 1/12 of the basic annual salary or a pro-rated amount, depending on the number of months rendered within the year. 

Other monetary compensations such as unused vacation and sick leave, overtime pay, and cost-of-living allowances are not part of the computation for the 13th month pay. It is not subject to tax, except if it exceeds the prescribed limit of Php92,000.00 set by the Republic Act 10963 or the TRAIN Law of January 2018.

13th month pay law

As per the Labor Code of the Philippines, employers are required to give 13th month pay to their employees not later than December 24th of the current year. Failure to do so may result in administrative charges. Executives, supervisors, and managers are not covered by this benefit.

Outsource Accelerator provides you the best outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

What is Business Process Outsourcing (BPO)?

What is business process outsourcing?

Business Process Outsourcing (BPO) is the engagement of services from a third-party provider. BPO uses various technology-enabled services to hasten the delivery of services. The business activities could be back-office such as, but not limited to, payroll, accounting, human resources, or front office jobs like customer service, sales, and marketing, etc.. In the case of content providers, these business activities could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business activities use their time on core services and competencies. With this shift on focus, companies improve their current processes that may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies. Often, companies find it impractical to hire a full-time position inhouse because of the cost associated with doing so.

Business process outsourcing services

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, business process outsourcing.

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