Outsourcing in the Philippines: Integral in the year of the OX

Despite the global economic slowdown for the year 2009, the business process outsourcing industry is expected to remain strong. However, growth will be as big as 2008. The Philippines has successfully captured a niche in the business process outsourcing industry, what with hundreds of call centers opening up and operating not only in Metro Manila, but in the islands as well and pretty much everywhere in the country. This success is attributed to its high English literacy rate and cultural proximity to the U.S. This industry is now a major contributor to the country’s economy and its employment opportunities.

We are in for a very tough economy, budgets are being cut across the board and companies won’t be increasing their spending on business operations. They are going to use outsourcing as a vehicle to save money, and – hopefully – increase their competitiveness. So, while we can expect to see increased spending on lower-cost services with a strong offshore element, we are already seeing many areas of planned spending put on hold – for example, costly software upgrades, or business transformation initiatives. Hence, the competition for the outsourcing dollars is going to be increasingly intense as revenue opportunities for services firms are already drying up in other services markets. Many of the smaller service providers, which are more focused on staff-augmentation delivery and discretionary projects, are going to struggle.

Philippines is emerging as attractive outsourcing location-with competent labor pools, lower costs. strong government support, and fast improving technical infrastructures allowing it to develop-attract- a base of suppliers with increasingly mature, competent service capabilities and reliable English speaking business source. BPO in the Philippines in this year will foster the necessity for entrepreneurs to create a solid BPO foundation.

The main driver for outsourcing is cost reduction. Labor cost savings overseas are just too great to be ignored. In knowledge-intensive industries such as Analytics and Data Mining Services, Research and Development, and Intellectual Property Research, companies can save significantly “ as much as 40-50% “ by offshoring work to low-wage countries.

123Employeeis the Low Cost leader in outsourcing to Philippines . It offers offshore outsourcing services from its American managed facilities in the Philippines. For just $897 per month each, you can have a full-time dedicated employee or team of employees with the skills you need.

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 www.123Employee.com