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The Philippines Anticipates Capturing 10 Percent of BPO Market by 2010

July 13, 2007

While India has long been the destination of choice for a vast majority of organizations seeking to outsource their contact center operations, the Philippines has been working to change that by focusing its efforts on becoming more competitive with India by increasing the quality and volume of its labor pool and ensuring tax incentives are attractive to investors.


In fact, the Philippine business process outsourcing (BPO) industry is hoping to capture as much as 10 percent of the global market share by 2010 and boost revenues to roughly $13-16 billion as the country positions itself to become the second or third largest service provider in the world.

According to Oscar R. Sanez, chief executive officer of the Business Process Outsourcing Association of the Philippines (BPAP), the industry currently enjoys just 5 percent of the global market. With the larger share, the industry is seeking to create 3.5 million jobs.

During a call center conference and expo, the BPAP unveiled preliminary results of the "Philippine Call Center Road Map 2010: Full Speed Ahead", a comprehensive study that details the industry’s goals over the next three years. The roadmap is a private sector-led initiative to determine how big the industry can be while also identifying constraints needed to be overcome.

Sanez also noted that the country is positioning to gain the 10 percent share of the $130-billion global BPO market by addressing major issues including sustaining talent supply, creating new locations and maintaining the right business environment to attract and continue to attract investors. The industry plans to work with the academe and the government to ensure growth in the offshore business.

The industry has plans to collaborate with colleges and universities as improved education is seen as the key to support the industry’s talent requirements. In the meantime, the government must ensure that healthy tax incentives are in place to attract more investors.



Benedict Hernandez, vice-president and general manager of call center firm eTelecare Global Solutions, contributed that the call center industry is expected to generate about 500,000 jobs and $4.8-7 billion in revenues by 2010. The industry currently employs 200,000 agents and raised about $3 billion last year.

The Philippines has been making waves in the offshore outsourcing industry over the past few years. This country has dedicated more focus in its infrastructure, the education of its labor pool and other elements to attract overseas investors.

While India has its own initiatives to maintain its dominant position, the Philippines may also see stiff competition from South Africa as this country has launched several programs in an effort to increase its share of the offshore market. Each country offers distinct advantages to overseas investors and it is too soon to tell who will ultimately emerge the dominant player.

Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
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