Over the years, the Philippines has grown to become one of the leading outsourcing destinations in the world. It has continuously provided abundant skilled workforce at a low cost, despite being in tough competition with other neighboring countries.
Additionally, this archipelagic Asian nation has turned into a feasible option to invest in outsourcing not only for multinational corporations but also for medium-sized companies.
This country with a population of more than 90 million people, in fact, has been a favorite place for business process outsourcing (BPO) because it is where efficient and cost-effective workers are available.
Aside from this, the country’s high quality workers are easily trainable and professionally skilled. some, if not all, are adept in Information Technology, programming, and Search Engine Optimization (SEO) techniques; and able to speak, understand, and write good English.
BPO and offshoring operations and activities are not a new phenomenon, though. Massive job losses and cost adjustments are inevitable consequences in the past that need to be addressed in a timely and effective way by all countries involved.
In a 2011 report by the Philippine Daily Inquirer, it is said the Philippines will remain on the third spot in the current global outsourcing and offshoring market, “with revenue for 2011 expected to reach $10.7 billion.”
According to XMG Global, a Canada-based research group, although India will still occupy the top spot, with an estimated reach of $61.5 billion in the same year, significant market shares will be achieved by China and the Philippines in the following years.
Both India and the Philippines are primarily dependent on clients based in the United States to generate their much-needed revenues, contributing to keep their economies moving.
The United States economy “remains to be a large market for offshore” and is “still on the road to recovery” in terms of gross domestic product growth rate.
On the other hand, China’s outsourcing industry tends to become more dependent on clients from Korea and Japan, despite some signs of weaknesses in their respective economies.
The Manila Bulletin also reported that the Everest Research Group forecasts a 15% growth in banking, financial services, insurance business process outsourcing as the year 2012 unfolds. Knowledge outsourcing such as analytics, internal audit, risk assessment, IT audit, and others will continue to increase as their favorable results show in 2011.
Such growth rates will be ushered in by developing economies in Asia Pacific and Latin America, the same source said.
Some experts say global outsourcing has already entered the era when technology is rapidly developing, demands for products and services are expanding more than ever, more opportunities for the IT and BPO industry are emerging, and government policies are shifting and changing to make them attuned to present conditions.
At this point, industry leaders are asking the question: how will the industry respond to current issues and trends?
They are starting to examine the root causes of issues and developments in global outsourcing and explore potential alternatives that they can mutually agree upon and implement unanimously.