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The Rising Tiger in Outsourcing - The Philippine Business Process Success Story

The Philippines, has over the last few years,the  BPO  sector.
bloomed as a key player in the global
offshore outsourcing market. The PhilippinesThe vast majority of the BPO facilities are
has been undergoing a Business Processlocated in the central part of Metro Manila
Outsourcing boom which is due primarily toas well as Cebu City although other regional
the demand for offshore web staffing,areas within the country are starting their
customer contact services, finance andown  thriving  centres.
accounting, human resources and call centers.
Many international companies already have
The outsourcing industry is considered one ofoutsourcing operations in The Philippines
the world'fastest growing industries andincluding Accenture, Convergys, Siemens, NEC
International investment consultancy firmTelecom, Caltex, Fujitsu, Alitalia, Unisys,
McKinsey & Co. predicts the demand forIBM, Intel, Procter & Gamble, AOL, Barnes &
outsourcing suppliers will reach $170 billionNoble, Chevron, Citigroup, Dell, HP, HSBC,
by 2010. Many companies outsourcing are moreJPMorgan  Chase  and  Motorola,
and more considering the effectiveness of
skills and not just cost savings in theirUsually the key players (vendors) are
decision making which means with Theco-owned and managed by expats combined with
Philippines offerings it is now emerging as alocal  managers.
global  leader  in  the  BPO  industry.
Over the 2006-2007 financial year the
In particular, The Philippines has become aPhilippines has earned over $2 billion from
global hub for corporate backroom operationsoffshore outsourcing service provision which
such as financial services includingmakes it the 3rd largest supplier behind
accounting and bookkeeping, accountsIndia and China. And for good reason, The
receivable collection, accountPhilippines has a low cost of wages is one of
maintenance,inventory control and purchasing,the main reasons for this trend. The
payroll processing, financial analysis,Philippines has the 2nd lowest hourly wage
management consulting, expense reporting,for outsourcing professionals and 95% of the
financial reporting, tax reporting, creditcitizens  speak  fluent  English.
card administration, factoring, stock
brokering, financial leasing, cargo shipmentIt is clear that the Philippines is
management and logistics management. intopositioned to become a key player in the
theseSouth East Asian Business Process Outsourcing
industry. This outsourcing sector will keep
In order to gain this rapid growth Theon track to become a primary part of the
Philippine government has offered significantPhilippine economy as more and more Filipinos
incentives in order to attract direct foreignyouth move into the game.
investment into the country specifically in



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