Philippine Outsourcing: Looking Beyond U.S.

On July 16, 2012, in Outsourcing, by Business Development Group
As it stands, the Philippines is unlikely to surpass India across the entire range of outsourcing services which includes non-voice services and other kinds of information technology services. However, industry leaders feel confident of the industry’s future growth, even going so far as to “jack up” the outsourcing earnings forecast to $25B by 2015.

Industry leaders feel confident of the industry’s future growth, even going so far as to “jack up” the outsourcing earnings forecast to $26B by 2015. The challenge now that the Philippines’ BPO industry needs to overcome is in moving beyond the U.S. outsourcing market.

Martin Conboy, president of the Australian BPO Association, pointed out in his blog in The Sauce, that the Philippine outsourcing industry is “punching above its weight.” The growth of the Philippine outsourcing industry has been nothing short of phenomenal. The country has recently managed to surpass India in voice-based outsourcing services even with a population of only about 101 million compared to India’s 1.2 billion.

Related Article: The Philippines is punching above its weight – but can it last?

As it stands, the Philippines is unlikely to surpass India across the entire range of outsourcing services which includes non-voice services and other kinds of information technology services. However, industry leaders feel confident of the industry’s future growth, even going so far as to “jack up” the outsourcing earnings forecast to $26B by 2015.

Related Article: BPO sector jacks up revenue goal to $26B by ’15

The challenge now that the Philippines’ BPO industry needs to overcome is in moving beyond the U.S. outsourcing market.

One of the reasons for the success of the Philippines’ outsourcing industry is that the work pool is made up of Filipino professionals that speak neutral English and are familiar with American idioms and lifestyle. In its early years, this has indeed helped the country’s outsourcing industry stand on its feet but recent developments in the U.S. are threatening the industry as U.S. President Barack Obama continue to pursue anti-outsourcing efforts.

Related Article: ICT-BPO meet to look beyond US

The recently-concluded ICT-BPO Conference held last June 26 & 27 in Cebu City focused on opportunities outside the US outsourcing market, tapping ICT/BPO international speakers from eight countries seen as potential non-US outsourcing markets. As one of the speakers, Martin Conboy gave a talk on the Australian outsourcing market. Whereas majority of outsourcing jobs from the U.S. required night shifts, tapping the Australian market could mean day shifts for Filipino workers – a solution for the empty facilities during the day that’s been a big issue for outsourcing operators in the Philippines.

Related Article: Hundreds expected to attend Cebu ICT/BPO confab

 

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