Monday, 13 July 2009

Philippine BPOs eyeing nontraditional markets

By Abigail L. Ho
Philippine Daily Inquirer
http://technology.inquirer.net/infotech/infotech/view/20090713-215148/BPOs-eyeing-nontraditional-markets

MANILA, Philippines - The country's business process outsourcing sector may soon play host to more nontraditional clients, as companies from several parts of the world consider offshoring to reduce costs.

Benedict Hernandez, president of the Contact Center Association of the Philippines, said countries such as the United Kingdom, Australia, Singapore and Canada were increasingly considering offshoring options.

With the Philippines’ good reputation in the global BPO industry, he said these nascent markets were showing growing interest in bringing business into the country.

“We’re on the proof-of-concept stage here. It will still take some time to build a critical mass of awareness among these new markets,” he said. “It will probably take another two years to develop these markets. It usually takes three years, and we’re now on the first year, so we have two more years to go.”

If the country would be able to penetrate the non-United States market, he said Philippine-based BPO providers could gain access to about 10 percent of the $4-billion global market for contact center services.

In the meantime, CCAP executive director Joselito Uligan said the Philippines had also begun to catch the eye of small and medium businesses in the US that had just started to realize the benefits of outsourcing and offshoring.

“More companies that have never considered outsourcing before are now looking at offshoring,” he said. “The SMB sector in the US is growing, and companies from that sector are looking at the Philippines (as a possible offshoring site).”

This emerging trend, he said, would provide a wider market for small and medium-sized call centers operating in the country.

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