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Challenges that Philippines' BPO industry are Facing

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  • Posted: July 19, 2011

Manila, Philippines - Since the Philippines has already proved itself as the best option for voice services, the Filipino government is now focusing on developing the non-voice BPO industry.  Incentive programs, infrastructure development, and client grants are being provided in order to attract more investors.

The country has a lot of advantages that favors the growth of outsourcing industry locally.  Some of these favoring factors that encourage offshore investors are the availability of competent and skilled workers, Filipinos affinity to western culture, vast pool of English speaking workforce, and lower cost of production services.

Jimit Arora, Research Director, Everest Research Institute says "In terms of operating cost per employee for transactional back-office work, the Philippines offers about 75 percent and 70 percent respective savings over tier-II cities in UK and US, which is somewhat lesser savings as compared to India, but sizably more than other off shoring destinations like Monterrey (Mexico) and Prague (Czech Republic).  Again, in terms of graduates per annum, at 480,000, Philippines lags behind India's 30, 000,000, but is much ahead of Egypt, Argentina, South Africa and Mexico"

Despite the countless advantages of the country to be the best option for outsourcing industry, Nikhil believes that the managing talent-related constraints will be critical to ensure operational success in the Philippines.  He said that the Philippines needs to address the four key talent-related challenges which are: scalability of entry-level talent; availability of specialized skills; availability and quality of managers; and migration of skilled talent. 

Source:
– Philippines Strong in Non-voice BPO: Study, CyberMedia CIOL, 1/12