The Philippines is the top choice of Australian companies for outsourced work, reveals a study released today.
According to the Australian Contact Centre Outsourcing Market Study 2011, although 81% of all Australian outsourcing was still done domestically, 19% of all outsourced work is now being shifted offshore to the Philippines. The study, released by Callcentres.net with the help of Aegis Australia, divided outsourcing into five categories - customer interaction (contact centers), back office processing, IT, finance, and HR.
In all categories, the study showed that the Philippines was on top - 20% of customer interaction, 33% of back office processing, 18% of IT work, and 25% of finance.
“As Australian businesses continue to have a strong focus on reducing operational costs there is continued growth in the outsourcing of business and customer related processes. There will also be an increase in the amount of work that will go off-shore. Service work will continue to be outsourced and off-shored to where it is most economically comparatively advantageous to perform. We call this the Services Shift,” says Dr. Catriona Wallace, director of callcentres.net. “Although only 1 in 5 Australian and New Zealand consumers state that they are happy to speak to an off-shored customer service representative, they may soon have to get used to it.”
According to Denice Pitt, Aegis Australia president, “This trend to the Philippines is consistent from what we are seeing in the market. It is becoming prohibitively expensive for companies to keep all operations in-house because it requires agility, scalability, training and technology that could be better employed elsewhere.”
“The ability to provide blended offshore and onshore solutions such as those in the Philippines enables companies to create efficient outsource programs whilst reducing their costs. By leveraging our global resources we are able to offer our clients complex, yet flexible, tailored outsourcing solutions that deliver scope and high value,” the Aegis executive adds.