Business Process Outsourcing: Moving into the Philippine Shores

Business Process Outsourcing: Moving into the Philippine Shores

Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

images2The Business Process Outsourcing industry is considered as one of the fastest business sectors in the world. The strong demand for outsourcing services is predicted to reach as high as $180 billion in 2010, with finance and accounting, customer support, human resource management, and back- end support services getting the most shares. A trend in primary business requirements is also foreseen, market analysts believe that there will be shift from practicality and cost reduction mentality to service quality and consistency. This reinforces the Philippine position as one of the top BPO destinations.

What started as an answer to the tremendous demand for offshore call center services, the Philippine BPO industry has become one of the leading global BPO service providers in the world. At present, an estimated number of 250,000 Filipinos work in BPO companies, not only in Manila but in regional areas like Clark, Angeles City, Cebu City, Davao City, Cagayan de Oro City, Bacolod and Dumaguete City. While call centers still hold the largest share of the country’s offshore outsourcing sector, the current surge in the industry is powered by a more specialized and higher- end outsourcing demand such as software development, web design, content writing, blogs, SEO – Search Engine Optimization, flash animation, data and billing entry, legal and accounting services, and medical, as well as, technical transcription.

Among the major companies that already operate in the Philippines include Dell, AOL, Earthlink, Chevron, Citigroup, Sprint, HP, HSBC, IBM, Intel, JPMorgan Chase, Motorola, Procter & Gamble, and Siemens AG.

A survey conducted by a reputable international investment consultancy firm revealed that the Philippines ranked 1st in the availability of knowledge-based jobs and skilled workers worldwide, and ranked 4th among Asian nations in terms of labor quality. The Philippines ideal location, the availability of considerably cheaper prime real estate locations, and a growing number of reliable ICT infrastructure only. The Philippine government supports Business Process Outsourcing and is very appreciative of the feedback it gets from foreign investors. Many locations are made to be equipped with high speed Internet accessibility, active and clear phone lines and satellite dishes. PLDT, Globe and Bayan telecommunications are among these companies that equip call center phone lines. It’s exciting to new that this trend toward enhancing BPO standards have surged continually in the past 8 years and continues to grow annually.

The future of BPO in the Philippines is aimed toward greater and better standards. Short courses on English proficiency allow Filipinos to speak better English. Call center academies aim to train in neutralization of the language and understanding the American culture. This approach will arm call center applicants when they get to apply in top BPO companies in the Philippines.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting

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