Sourcing Destination Snapshot: The Emerging Philippine Value Proposition

“The Philippines offers many opportunities as an offshore sourcing destination as well as being well positioned as a regional hub for Asia Pacific.” - Ralph Schonenbach (CEO, Trestle Group)

In designing sourcing models, IT and BPO decision-makers literally have a “world” to choose from when it comes to competitive country locations. The unique needs of a business will clearly drive managers to seek out sites capable of satisfying a range of those complex demands. With that said, informed professionals know that the Republic of the Philippines is a world-class delivery-center destination that should be closely evaluated as an option in any sourcing exercise.

From a sourcing perspective, the Philippines is one of the global titans. Ranked 2nd after India as a business process offshoring market by destination, the Philippines has emerged as a power-player that has aggressively taken advantage of the outsourcing trends over the past decade. In 2010, IT and BPO revenues totaled $9 billion in the Philippines and its global share of the offshore services market rose from 7% to 8%.

Clearly, with a large pool of English-speaking talent and 92.6% literacy rate, the scale and skills required for both voice and non-voice BPO are present. Currently, the nation has over 600 IT & BPO companies present with labor force totaling approximately 530,000. In regards to growth, the Philippines IT-BPO industry as a percentage of GDP has nearly doubled to 4.8% in 2010 from its base at 2.7% in 2006.

This expansion has not stopped. During the financial crisis alone, the Philippines bucked the negative global trend and demonstrated a 19% growth rate in IT / BPO revenues. With this level of operational tempo and expansion, not only is talent available across the Philippines, it is also now proven.

Industry and Government Support
The Business Processing Association of the Philippines (BPAP) clearly plays a leading role in supporting the local offshoring industry and has together with relevant stakeholders developed and acted on a comprehensive action plan designed to grow and improve the Philippines’ value proposition and competitive position. This “blueprint” plan was first conceived in 2006 and was eventually named “Road Map 2010” as it incorporated goals and specific action items that needed to be executed in order to obtain success. Areas of focus within this plan included talent management and development, “Next Wave Cities,” and the business environment. Over the past four years, BPAP has aggressively worked with stakeholders to obtain outstanding results that have improved the Philippines’ market position as a leading offshore location. Going forward, and released early in 2011, BPAP presented the “Philippine IT-BPO Road Map 2016: Driving to Global Leadership”, that emphasizes the importance of talent development programs, strategy for marketing, needed regulatory changes, and additional priorities for next wave cities.

Detailed information about this article and more publications on:
http://www.trestlegroup.com/wp-content/uploads/2011/05/TGC_SourcingDestinationSnapshot_Philippines_May20111.pdf

Trestle Group is an international firm providing services solely focused on global sourcing. Through our diverse and complementary set of services, clients benefit from support ranging from strategy through to implementation. Whether you are interested in setting up operations in Eastern Europe, outsourcing to India or ready to make the world a better place through our Foundation (www.trestlegroupfoundation.org), Trestle Group is a solid partner. Experience Trestle Group today.

Daniel Rivette
Friedrich-Ebert-Anlage 36
60325 Frankfurt am Main
Tel: +49 69 244 333 162
Fax: +49 69 244 333 207
http://www.trestlegroup.com

This release was published on openPR.