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Manila placed 3rd in Top Global Outsourcing Destination
Manila, particularly the NCR, placed 3rd in the 2013 Top 100 Outsourcing Destination. The country’s business process outsourcing (BPO) industry is fast expanding compared to its neighboring Asian countries like Indonesia and Malaysia.
Foreign-based companies elect to outsource here in the Philippines because of the excellent high-quality outsourcing services the country provides. The developing macro-economic setting and the country’s unstoppable market expansion are likewise primary reasons why Philippines had climbed one notch higher in the BPO industry ladder. It can be recalled that Manila grabbed the 4th place during its last year’s ranking.
Tholons, an investment advisory firm, said that last year’s IT-BPO industry of the Philippines was powered by the rising investments from small to medium-sized foreign-based companies and the continued expansion of locators and captives all over the country.
Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines (BPAP), declared, “The Tholons’ rankings and report overview only reaffirms the Philippines’ position as a destination of choice for outsourcing services. In 2012, we saw impressive growth across all sectors of the Philippine IT-BPO and GIC industry. The year 2013 promises to be even greater as we expect revenues to increase to $16 billion to provide employment to 926,000 Filipinos”.
While the Philippine IT-BPO industry strives to preserve its worldwide leadership in voice BPO services it likewise intend to expand into several outsourcing sectors, such as software development, healthcare information management (HIM) outsourcing, IT outsourcing, animation and game development. The country’s outsourcing industry further envisions penetrating markets not just the USA but all over the world.
Hernandez continued, “IT-BPO will remain the fastest-growing industry in the Philippines as we continue to address challenges and embrace opportunities in new service areas and emerging markets. We are steadfast in ensuring that the industry will achieve its targets of $25 billion in revenues and 1.3 million full time employees by 2016”.
Among the 2013 Top 100 Outsourcing Destinations were Indian cities, Bangalore and Mumbai, who snatched the first and second place, respectively.
Philippines’ BPO Success Makes India Worry
The Philippines is undeniably becoming the most popular location for the BPO industry. This conception and the lackadaisical growth of India’s BPO industry have led to the conclusion that India needs some serious rebranding.
At the beginning, the BPO Industry of Philippines concentrated on voice-based (call center) services. But as the years flew by, it has migrated to higher-value, knowledge-based services that cater to multinational clients. Call center agents whose jobs were limited to taking calls or delivering voice-based services are now trained to be likewise capable in being domain experts, specialists, or analysts. This has changed the BPO industry of Philippines from giving stop-gap options to providing full-fledge career choices for the nation's professionals.
India, on the other hand, initially shared the same BPO growth as that of the Philippines; however, several Indian BPO companies failed to go through the same development or transition sooner. In turn, the Philippine BPO industry gained the preference not only of people searching for a job or a career but also of companies searching for outsourcing services.
India needs to rebrand the way BPO industry is introduced in its society, that is, make the industry more attractive to parents and university professors since they are the ones who can exert a significant influence in the career choices of their future professionals.
The Philippines has done well in branding the BPO industry. The government has given much support for propagating the industry. It worked with independent organizations focused on overseeing the movement and growth of the BPO industry of the country. Some of the popular organizations include the Business Processing Association of Philippines (BPAP), Contact Center Association of the Philippines (CCAP), and Cebu Educational Development Foundation for Information Technology (CEDF-IT). The government organizations who actively participate hand in hand with the mentioned NGOs include the Technical Education and Skills Development Authority (TESDA) and the National Economic and Development Authority (NEDA). The educational sector of the government has also given their support, the Department of Education (DepEd) and Commission on Higher Education (CHED).
The end result was astounding; the BPO Industry of Philippines has become the world’s leading contact center hub and is where most career choices lie for the youngsters. As for India's BPO industry, a specific curriculum needs to be developed; the country's college teachers can also benefit from trainings about the industry.
BPOs today employ specialists in analytics, accounting, or finance and professionals such as tax consultants, lawyers, doctors, and chartered accountants. Call center businesses now handle more complex functions—it is no longer limited to making random sales calls. India may have produced several of such specialists but they remain wary of the "BPO" tag.
The established relationships between BPO service providers and their multinational clients have increased the latter's confidence in outsourcing more tasks. What comes with this advantage, however, is the client's heightened expectation or an indifference to high-end delivery and a demand for increased value.
India is still leading in IT-BPO and KPO (knowledge process outsourcing) services, but the image and equity thereof are diminishing. For the last few years, the BPO industry of India focused on growth and scale; but since 2009, it has stopped growing.
Raman Roy, chairman and managing director of Quatrro BPO Solutions and considered the father of Indian BPO, says rebranding is critical in the context of career development.
India needs to go back to where its outsourcing industry began and redesign how it was built to prevent further BPO industry decay.
The Philippines has indeed made neighboring countries quiver with its flourishing development in the BPO industry. It’s only a matter of time that the country will be a renowned specialist, not only in BPO, but in all other aspects of outsourcing, worldwide.
Evolution of Philippine - KPO
Businesses are ordinarily confronted with the struggle to stay globally competitive. Business owners find it difficult to compete globally if you still have to worry minor details of trade management. Hence, most companies have resorted to business process outsourcing to give their full attention to the core of their respective trades or businesses. Business process outsourcing (BPO) industry on the other hand presented speedy and reliable services to their clients making the BPO industry soar high. However, BPO has evolved into knowledge process outsourcing or KPO.
While BPO mostly refers to low class kind of work such as payroll preparation, technical support, data entry and several other back office support services, KPO involves first-class knowledge functions. KPO’s wide array of services would include research work on legal, intellectual property, market and business research, as well as data and financial analysis. Thus, to guarantee good quality performance for these services, skilled and experienced professionals are the ones often hired to do the job.
The rising of KPO industry is indeed inevitable. It may encounter challenges along the way, but considering the country’s vibrant, customer-friendly and viable environment, Philippines’ KPO industry is sure to reach insurmountable heights in just few years.
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