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

The Philippines, has over the last few years, bloomedto attract direct foreign investment into the country
as a key player in the global offshore outsourcingspecifically in the BPO sector.
market. The Philippines has been undergoing aThe vast majority of the BPO facilities are located in
Business Process Outsourcing boom which is duethe central part of Metro Manila as well as Cebu City
primarily to the demand for offshore web staffing,although other regional areas within the country are
customer contact services, finance and accounting,starting their own thriving centres.
human resources and call centers.Many international companies already have outsourcing
The outsourcing industry is considered one of theoperations in The Philippines including Accenture,
world'fastest growing industries and InternationalConvergys, Siemens, NEC Telecom, Caltex, Fujitsu,
investment consultancy firm McKinsey & Co. predictsAlitalia, Unisys, IBM, Intel, Procter & Gamble, AOL,
the demand for outsourcing suppliers will reach $170Barnes & Noble, Chevron, Citigroup, Dell, HP, HSBC,
billion by 2010. Many companies outsourcing are moreJPMorgan Chase and Motorola,
and more considering the effectiveness of skills andUsually the key players (vendors) are co-owned and
not just cost savings in their decision making whichmanaged by expats combined with local managers.
means with The Philippines offerings it is now emergingOver the 2006-2007 financial year the Philippines has
as a global leader in the BPO industry.earned over $2 billion from offshore outsourcing
In particular, The Philippines has become a global hubservice provision which makes it the 3rd largest
for corporate backroom operations such as financialsupplier behind India and China. And for good reason,
services including accounting and bookkeeping,The Philippines has a low cost of wages is one of the
accounts receivable collection, accountmain reasons for this trend. The Philippines has the 2nd
maintenance,inventory control and purchasing, payrolllowest hourly wage for outsourcing professionals and
processing, financial analysis, management consulting,95% of the citizens speak fluent English.
expense reporting, financial reporting, tax reporting,It is clear that the Philippines is positioned to become a
credit card administration, factoring, stock brokering,key player in the South East Asian Business Process
financial leasing, cargo shipment management andOutsourcing industry. This outsourcing sector will keep
logistics management. into theseon track to become a primary part of the Philippine
In order to gain this rapid growth The Philippineeconomy as more and more Filipinos youth move into
government has offered significant incentives in orderthe game.