The world leader in business process outsourcing or BPO is the Philippines. The Philippines has emerged, substituting India in terms of total number of workers employed. It is show a shift at the top of the still strong global cost-cutting trend, this is show by the two studies, one by IBM’s Global Locations Trend report and the another is by consulting firm Everest Group. Since 2006, with an average annual growth of 46 percent, the Business Process Outsourcing has been one of the few bright spots in the otherwise moribund Philippine economy.
In 2006, the sector almost non-existent a decade ago, it has zipped from US$350 million in revenues to cover $9 billion last year. The analyst predict industry revenues will grown $10 billion this year. By the Western Banking, insurance and technology companies, the Business Process Outsourcing has evolved into a $150 billion global industry. It has outsourced parts of their Information Technology operations to lower cost, English-speaking developing countries. The Filipinos handle sales, customer services and technical support calls because of the boom in the Philippines, this are led by the call centers.
According to the Contact Center Association of the Philippines, the Philippines boom has been led by call centers, which make up for nearly 70 percent of the local Business Process Outsourcing industry.
In the Philippines, the Indian Business Process Outsourcing companies are shifting their work. The India’s Tata Consultancy Services opened its first Business Process Outsourcing center in Southeast Asia at Taguig City. By the year 2016, the Philippine projected that outsourcing in the Philippines will grow into a $25 billion industry. This provide work for some 1.3 million people. Over the past three years, the number of call centers in India has fallen by half.
Base to the Business Processing Association of the Philippines, an estimated 120 Business Process Outsourcing firms employed over 600,000 Filipinos. Business Process Outsourcing company employees is now earing on an average of 53 percent more than workers of the same age in other industries. The US outsourcing clients are drawing a distinction between the Philippines and India, this is with the preference for Filipino workers’ American accents and grasp of US culture. The key to the Philippines success has been its huge pool of English language-proficiency workers.
It is often cited for the comparative ability to solve complex problems in the Filipino Business Process Outsourcing workers. In India, one industry executive estimated that it takes on an average only one to two calls to solve a problem in the Philippines that in comparison would take six or seven. Deepak Patal, an Indian Business Process Outsourcing entrepreneur noted that the Indians have not been able to handle irate customers.
A local think-tank, the Institute for Development and Econometric Analysis Inc. estimated that the fewer number of calls required to solve a Business Process Outsourcing-related problems has contributed to the Philippines cost competitiveness vis-a-vis competitors in India. The US companies are increasingly willing to pay for the difference. It is still considerably less than the $30,000 excluding fringe benefits required to hire an average US worker, the Filipino call center agents earn around $3,600 annually. It is a crucial measure of quality control that the attrition rates are also much mower in the Philippines than in India.
It has also given the Philippines an edgein the tax incentives for Business Process Outsourcing related investments, including income tax holidays of six to eight years. The industry net margins rate were between 11-12 percent in the Philippines base int he report of the World Bank’s latest Philippine Quarterly Report. The two countries were roughly on par after the income tax holiday.
Business Outsourcing is the best in all the technique, people should know now the importance of outsourcing. There are lots of benefits that people can get here. This is the best way to find a solution in every struggles of the business or country as well.
REFERENCE:
http://www.atimes.com/atimes/Southeast_Asia/MC09Ae01.html
http://www.atimes.com/atimes/Southeast_Asia/MC09Ae01.html
http://www.allvoices.com/news/8405677-philippines-ousts-india-for-outsourcing-top-spot
Philippines ousts India for outsourcing top spot
http://www.philippinesorbust.com/philippines-ousts-india-for-outsourcing-top-spot/
http://www.trybpo.com/bpo-philippines-indispensable-business-process-outsourcing-hub/
