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Offshore Business Process Outsourcing Companies Philippines
The first offshore business process outsourcing company in the Philippines was a call center, which started operations in 2001. Since then, hundreds of call center have sprung in the country handling a wide range of inbound and outbound calls from product inquiries, telemarketing, to technical support and travel bookings.
As the call center industry grew, more offshore business process outsourcing companies in the Philippines opened business to deliver services other than call center services. The development of internet communications technology in the Philippines made offshore business process outsourcing possible in the country. Technology allowed companies in high-cost regions to relocate their non-core business processes to offshore locations where the cost of operations and labor are much lower
Mainly, companies chose to send work to offshore business process outsourcing companies in order to reduce costs and increase profits – goals that are realistic and highly attainable because wages in developing countries like the Philippines is 50 to 80 percent lower than wages in the United States and other developed countries.
For instance, the average monthly salary of a customer representative in the Philippines is US$300; while in the United States, a person doing the same job receives about $2,000 a month. While three hundred dollars would seem like a pittance to the average American, that amount of salary in the Philippines is in fact very attractive drawing a mass of recruits.
Many of the large offshore business process outsourcing companies in the Philippines have become even more profitable in the past years. In 2005, offshore business process outsourcing companies earned a total US$1.8 billion in revenues and produced about 160,000 jobs. Analysts predict offshore business process outsourcing companies as a whole will earn revenues close to US$4 billion by the end of 2006 and $10 billion by 2010.
Makati City, Quezon City and Alabang are the main locations of offshore business process outsourcing companies in the Philippines but infrastructure developments in several regional areas have encouraged many offshore business process outsourcing companies to set up operations outside Manila.
Currently, the biggest offshore business process outsourcing companies in the Philippines are call centers. The largest call center has about 8,000 employees with several locations in the country. Large call centers hire about 600 people annually. Many of them have headquarters based in the United States but have expanded their operations to the Philippines.
While call centers are presently the most dominant offshore business process outsourcing companies in the Philippines, the BPO industry consist of other companies offering diverse business process outsourcing services.
Among the most promising offshore business process outsourcing companies in the Philippines today are medical transcription companies. For these firms, the availability of medical and health professionals in the Philippines is a key advantage along with the presence of good internet communication technology.
There are about 50 companies offering offshore medical transcription services in the country located predominantly in Metro Manila and some in Baguio City and Cebu Ciity. Currently, the Philippines has 1 percent of the US medical transcription market share. The industry is confident this will grow in the coming years.
Another type of offshore business process outsourcing company in the Philippines is an animation service provider. Animation is a potential growth sector in the BPO industry. About 22 companies in the country produce animation for the US, Europe and Japan markets. These animation companies have generated $40 million in revenues in the year 2004 and the animation sector could grow 25 percent annually.
Other offshore business process outsourcing companies offer services related to IT, finance and business such as software development, website services, accounting, logistics, human resource management services, supply chain, research, engineering and architectural design and among others.
