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NZ Firms Seen to Invest More in PH

by: Sarah Joson

Thursday, June 19, 2014 | Outsourcing News |

More Investors from New Zealand Anticipated

According to Reuben Levermore, New Zealand Ambassador to the Philippines, the country’s robust business process outsourcing (BPO) industry is further improving its image as an investment destination, particularly for engineering and IT firms based in New Zealand.

Levermore noted that more and more companies from New Zealand are not only outsourcing call center work, but are actually setting up IT offices as well. Since New Zealand firms are setting up in the Philippines, they are able to grow their business while contributing to the inclusive growth of the Philippines through job creation. This, he said, is possible because New Zealand companies can provide the technology and expertise, while the Philippines offers scalability.

Meanwhile, New Zealand Trade Commissioner to the Philippines Hernando Banal said he has seen an increase in the number of IT companies that are opening offices in the Philippines. Banal said the first few firms that took interest in the Philippines are engineering and food and beverage companies. But in recent years, more and more IT companies are seen setting up their back office operations in the country. A company was said to have grown from two employees to 500 in a period of four years.

One major challenge of companies in New Zealand is finding the right local talent. This is because of its small population and a low turnout of university graduates annually.

Banal added that New Zealand firms have the in-demand product ideas and innovations, but they do not have the capacity to mass produce. For instance, one of the commonly outsourced processes to the Philippines today is product testing. It requires many testers for a short period of time and is very labor-intensive. Basically, the design and concept will come from New Zealand firms, while the labor-intensive parts such as actual production and testing will be sent out to the Philippines.


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