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Philippines To Be Number One Outsourcing Site

Jan 20, 2008
In 2000, only four Business Process Outsourcing (BPO) companies were operating on Philippines shores; and there were only about 2,500-plus call center agents manning the lines. Within seven years, that population has grown exponentially with more than 120 BPO companies requiring more than 200,000 agents at any given time.

The Philippines is gradually becoming one of the most sought after BPO site in the global market. It has surpassed all market expectations, and outsourcing companies are reaping the benefits; while at the same time, help strengthen the Filipino economy with the influx of dollar-based businesses. There are many factors that contribute to this countrys popularity among foreign investors, but for the purpose of discussion, this article will concentrate on only two: English fluency and the steady progress of infrastructure development.

English Fluency

Today, the Philippines ranks third in the global market when it comes to providing outsourcing services, with India and China still retaining the top two spots. India, however, subscribes to the British-style of the English language complete with a very pronounced accent, and native sensibilities. China, on the other hand, despite the fact that it is producing more technical school graduates and scientists yearly, (which is highly desirable in the BPO industry) still has to contend with its fluency with regards to spoken and written English. English fluency is one of the primary reasons why many US BPO companies are looking into the Philippines as an alternative source of skilled manpower.

The Philippines is the 3rd largest English speaking nation in the world (after USA and UK), and has, for a certain time been under American governance. This makes it easier for Filipino outsourcing agents to come to grips with American sensibilities and mode of speech. It also helps that the country is seemingly US centric: following the same accepted accounting principles, the same engineering standards, the same medical standards, and sometimes, even the same laws. For clarification purposes, India, the world leader as outsourcing service providers is more UK centric, and thus poses a lot of problems with regards to US-based companies promoting American sensibilities.

Another factor that contributes greatly to English fluency in the Philippines is that the workforce is comprised mostly of college graduates from reputable schools, and has undergone extensive and / or longer periods of training.

Steady Progress of Infrastructure Development

Infrastructure development is very important in the business world. Development means reliable telecommunication and transportation infrastructure, which translates to lower operational costs for the BPO companies.

The National Capital Region or more popularly known as Manila is the commercial, educational and financial hub of the nation. Here, investors are finding suitable niches that that affords their clients the excellent service their companies bank on, with relatively lower operational costs as compared to the same kind of service in the US and even in India. Here too, is the site for the most numerous qualified college graduates actively seeking positions in the different outsourcing companies. (Not that this has posed any problems prior because according to many market trend research, the demand for qualified agents still outweigh greatly the manpower supply.)

Some BPO companies are even reaching out to other parts of the Philippines like Cebu, Davao and Pampangga: three provinces that have lower costs of living, lower business office rentals, lower housing rates, but with steadfast infrastructure development that can now compete globally when it comes to telecommunications and transportation advancement. All this basically means that the BPO companies can bring down their rates even further to entice more US-based businesses to outsource jobs in the Philippines.
About the Author
James Stinson is Owner and Founder of Global Sky Inc. He employs a team of 50 in a high quality call center facility based in the Philippines. For more info on outsourcing your project visit: http://www.global-sky.com
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