According to the Business Processing Association of the Philippines (BPAP), the Philippines is one of today’s ideal offshore outsourcing destinations as it is equipped with skilled workforce and offers services at a fraction of the cost.
BPAP President and CEO Benedict Hernandez said the country continues to attract information technology and business process outsourcing (IT-BPO) investors due to several factors which include strong public-private partnerships, new investment models, sound infrastructure, proper investment climate, and the country’s positive image.
He added that organizations in emerging markets are rapidly growing compared to firms in more advanced economies. Some of the world renowned IT-BPO companies have operations in the Philippines.
Moreover, the Philippines is able to break through the IT outsourcing arena. It is now capable of delivering engineering, finance, healthcare, facility management, support services and more, which in turn makes the country a feasible location for investors who are looking to outsource various functions.
In 2011, the country’s BPO industry posted $11 billion in revenues and employed 640,000, putting the country at the top for voice-based services and second for high-valued, complex processes. Another delivery model that is predicted to grow within the IT-BPO segment is global in-house center (GIC) type which is said to reach $270 billion by 2016.
Meanwhile, the Next Wave Cities report highlighted information about the top 10 regions in the Philippines that are on the fast track in becoming IT-BPO hubs. These are Davao, Laguna, Bacolod, Iloilo, Cavite, Batangas, Cagayan de Oro, Malolos, Baguio, and Dumaguete.
In addition to that, the Data Privacy Act and the Cybercrime Prevention Act, which were recently signed into law, are expected to increase investor confidence and improve the country’s IT-BPO industry.