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Offshore BPO Outsourcer Philippines
Globally, the Business Process Outsourcing (BPO) market is set to increase in size at rate of 79 percent annually and mat reach more than US$24 billion by the year 2008.
Locally, there is also growth for the offshore BPO outsourcer in the Philippines as the number of businesses considering outsourcing increases along with more business functions other than call center operations being out-sourced from first world countries.
In the Philippine offshore BPO industry, the most dominant service sector is the call center industry. However, service buyers have started outsourcing other business factions such as finance, accounting, human resources, procurement, logistics and manufacturing. Even the healthcare industry has embraced outsourcing to meet demands for medical transcription services.
The Progress of BPO in the Philippines
Increasingly, the global BPO market is regarding the Philippines as a top offshore BPO outsourcer. Industry surveys ranks the Philippines as the second most attractive BPO destination in the Asian region and fourth worldwide. The strength of offshore BPO outsourcer Philippines lies in its competitive cost structure, availability of qualified labor force, solid business and telecommunications infrastructure and business-friendly environment. The top rankings of the Philippines as an offshore BPO outsourcer matches economic figures that indicate revenues earned through BPO service contracts amounting to more than US$1 billion in 2005 from a 2004 revenue of US$800 million.
The main assets of offshore BPO outsourcer Philippines continue to be the high level of English proficiency of the Filipino workforce and its familiarity with the culture of Western businesses. Additionally, offshore BPO outsourcer Philippines attracts more BPO service buyers, mainly from the United States, with its low-cost labor rates, a huge pool of college and university graduates, and modern technology infrastructures. These advantages have made it an ideal offshore BPO outsourcer for many Fortune 500 companies who have turned to outsourcing business operations like customer support, call center services and telemarketing.
Nationwide Expansion
Most BPO companies in the Philippines are based in Metro Manila particularly in the business areas of Makati and Quezon City, where about 80 call centers can be found.
However, smaller cities in other parts of the Philippines are developing into BPO centers due to the lower operation costs in these areas, local talent, and the development programs of the Philippine government. Among the cities that have great potential to become top players in the BPO market are Cebu, Davao, Bohol, Baguio, Clark, Iloilo, Dumaguete and Cagayan de Oro.
Future Prospects
As the BPO market consolidate, which many industry analysts predict will happen, many BPO service providers will bundle their service offerings and provide clients end-to-end or full-spectrum business services. Offshore BPO outsourcer Philippines is set to participate in this trend by expanding its services to be able to offer business clients solutions for wider-range of business processes.
In finance-related services, for instance, an offshore BPO outsourcer of accounting services may branch out to other areas of finance such as accounts payable, accounts receivable collection, and accounts receivable management, payroll processing and others. In the area of Human Resources Management, an offshore BPO outsourcer offering services to this sector may expand to payroll processing, benefits administration, and even training.
However, it will necessary for an offshore BPO outsourcer to establish and maintain good client relationships with its current client base if it were to expand into other services with success. Keeping a good record of reliability and quality in its present service offerings will serve it well in its future ventures.
With collaboration among industry players, the Philippine government including the educational institutions in the country, the prospects of the Philippines as an offshore BPO outsourcer are indeed promising and the opportunities for growth are many for the country to explore.
