The Philippines is second most favored outsourcing country

After India, the Philippines has emerged the second most favored global outsourcing destination in the world, while the country’s National Capital Region (NCR) of Manila has emerged as the fourth most favored city, after Bangalore, Delhi and Mumbai in India, for setting up IT and outsourcing facilities.

According to a survey of Top 50 Emerging Outsourcing Cities published by the global investment advisory firm Tholons recently, although the population of the Philippines is a mere tenth of India, the country has been able to capture 15 per cent of the offshore BPO market. Presently, the offshore BPO market share of the Philippines is just below 33 per cent of the Indian market. Most importantly, while the other businesses suffered due to the recent global recession, the Philippine BPO industry has succeeded in maintaining a double figure annual growth each year.

Quoting the CEO and president of the Business Processing Association of the Philippines (BPAP) Oscar Sanez, a website reports that in terms of proceeds, the contact center witnessed a growth of 20 per cent during 2009 compared to 14 per cent growth during the corresponding period in the previous year. In general, the BPO industry in the Philippines increased by 19 per cent earning revenues to the tune of $7 billion. Sanez further said that the Philippine BPO industry, which currently has a 442,000-strong workforce, of which as many as 70,000 joined the industry last year, makes a contribution of five per cent to the country GDP.

Another report quotes the BPAP CEO saying that that the growth target for industry during 2010 is 26 per cent with an estimated total revenues worth $9.5 billion. He said that the growth is not unrealistic considering the fact that more and more global clients are seeking inexpensive services. He said that the Philippine BPO industry is following a ratio of carrying out three to four investor meet every week of which some yield results, while others don’t. Nevertheless, in general, the industry has witnessed the setting up of a number of delivery hubs during 2009 and presently there is a flow of new inquests regarding about the Philippines. At the same time Sanez reminded that several Philippine BPO firms are currently stressed to lower their pricing arrangement and, hence, they are contemplating outsourcing as well as offshoring to augment their effectiveness.