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Build better customer relationships
January 18, 2007


The Philippines’ Outsourcing Opportunity


If the Philippine economy was looking for a tonic to energize it then it has come in the form of outsourcing, with the Philippines at the leading edge of this rapidly growing industry which—via the wonders of the IT highway—provides key backroom operations and call centers that build better customer relationships for leading corporations in the United States and the European Union.

Much to the envy of its other Asian rivals vying for a piece of the outsourcing cake, the Philippines currently hosts 120 business process outsourcing (to give its full, and rather unwieldy name) providers, including 70 call centers. And together they fully employ over 130,000 workers.

The industry is expected to rake in almost $2 billion in revenues this year, and engage at least 50,000 new workers next year.
In addition, the BPO industry has helped boost the office rental business by taking up lots of space in high-rise office buildings in the Makati Business District and Ortigas Center (the main locations for BPO operations in Metro Manila) that have stayed largely empty for some time.

Recognizing the growing role of the business process outsourcing industry in national economic expansion and job growth, Rep. Joseph Santiago of Catanduanes has sought the creation of a top-level, 24-hour one-stop government help desk that would assist all existing as well as prospective investors promptly deal with all their needs and build better customer relationships.

Santiago, the former chief of the National Telecommunications Commission, also proposed that BPO providers be granted preferential, fast-track accommodation in their transactions with national as well as local government offices. He said the special treatment should include express lanes in the Bureau of Customs, Bureau of Immigration, Department of Foreign Affairs and Department of Labor and Employment.

The industry’s rapid growth has had a tremendous multiplier effect on the economy. Thousands of new jobs and new income are being created, thus spurring personal consumption in a big way. The industry’s brisk demand for telecommunications services and office space is also lifting other sectors. Even the advertising industry is being buoyed by the aggressive labor recruitment of call centers.

Chasing the outsourcing wave is a smart strategy for an economy such as the Philippines'. Compared with capital-intensive manufacturing, service businesses are cheap to set up, and can generate a hundred times more jobs per dollar invested. President Arroyo recently earmarked $10 million for new trainees in the outsourcing industry. Students interested in outsourcing jobs are given vouchers that can be used for tuition at vocational institutes.

Offshoring, Inc, an American owned and operated staff leasing company headquartered in Atlanta, Georgia and based in the Philippines, provides businesses and employers with a simple, no-hassle solution to offshoring business processes, in response to the influx of demand for outsourced products and/or services.

Offshoring, Inc provides offshoring solutions in the Philippines and is the foremost offshore staff leasing company that offers the best professionals in the labor pool, such as advanced degree holders and competently trained writers, graphic designers, programmers, media managers, quality assurance representatives, data entry clerks and contact center agents all who have practical experience in the workforce and are able to build better customer relationships. The company helps international employers significantly reduce searching, training, and operating costs while maintaining complete control over the process. Offshoring, Inc’s edge among other staff leasing companies is the highly qualified skilled professionals that occupy their seats. The company also provides state-of-the-art hardware and facilities for the professionals’ efficient operations.

Providing US-based confidentiality and non-compete agreements, Offshoring, Inc values the client’s intellectual property and trade secrets in top priority. The company assures clients that the staff they hire are their exclusive employees until the contract expires. All potential staff are extensively reviewed with background checks and constant stern supervision. Offshoring, Inc dutifully protects their clients’ security.

Unless cost escalation gets out of hand or other infrastructure bottlenecks appear, the Business Process Association of Philippines projects that outsourcing in the Philippines could be an $11 billion industry employing 900,000 people by the end of 2010. That will put it close to where India is today. "Five years from now, there could be a lot of countries doing as much as India is doing today," says Infosys CEO Nilekani. "We are just scratching the surface in outsourcing and offshoring."

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