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Offshore BPO Companies Philippines
Global businesses seeking to reduce costs and focus on their core business activities are main market for Offshore BPO companies in the Philippines. Majority of these businesses are located in the United States. In fact, US accounts for 60 percent of the global BPO market.
An offshore BPO company is an outside company that takes over a wide range of business functions. Back office functions that are typically out-sourced are accounting, human resources management, procurement, and the like. Front office operations include customer service, call center operations, sales and telemarketing, among others. Offshore BPO companies in the Philippines provide services to support both back office and front office operations.
In 2005, offshore BPO companies in the Philippines grew significantly at rapid rate of 137 percent earning US$2.5 billion in revenues. During that same year, offshore BPO companies in the Philippines double capacities and produced 81, 000 new jobs.
The growth of the BPO industry in the Philippines started with the strong demand in the United States and other countries for call centers located offshore. The success of the call center business in the Philippines helped establish the country as a viable BPO destination. The call center sector employed 112,000 people in 2005 and earned around US$ 1.12 billion revenues during the same year.
Growth Factors
The large English-speaking workforce of offshore BPO companies in the Philippines favored the customer services sector greatly and this skill in the English continues to give the country an competitive advantage.
In addition to having professionals who are fluent in the English language, Philippines also boasts of having the largest pool of accredited accountants in the entire Asian - a fact that offshore BPO companies in the Philippines that provide financial services use to their advantage.
Industry research ranks the Philippines as the 3rd-best designation in the world for business process outsourcing. The BPO industry is definitely moving towards becoming number one.
Marketing Filipino BPO companies
A trade and investment mission organized by the several Philippine government agencies and BPO industry players are seeking to push the efforts of offshore BPO companies in the Philippines to enter the global market,
The trade and investment mission will sustain the aggressive efforts of the Philippine government to promote the IT capabilities and BPO capabilities of offshore BPO companies in the Philippines in various sectors such as customer relations, transcription, financial services, design, animation, engineering, and others in the United States.
The mission focuses on key cities in the United States that the country is eyeing to deliver more business to offshore BPO companies in the Philippines. These cities are New York, Chicago, Miami and Denver.
The US BPO Market
The United States is the primary market for offshore BPO companies in the Philippines and the increasing demand for outsourcing in the US only indicates it will remain to be so.
Statistical figures show that the BPO market globally will reach US$173 billion dollars in 2007 from $131 billion in 2004. At present, more than half of the demand for outsourced work is coming from North America.
The venture of the BPO Industry and the Philippine government to market Filipino BPO companies in the United States will help small offshore BPO companies in the Philippines who are looking for ways to form alliances with American partners.
As more businesses in the United States see the need to focus on their core competencies, opportunities for offshore BPO companies in the Philippines abound. For these companies, the culture, workforce, and strategic location of the Philippines remain key advantages to attracting business. By leveraging these advantages and further developing human resources and skills through training, the opportunities will increase.
