Friday, December 7, 2007

Swinging Along with BPO in the Philippines

A Major Shift in the BPO Industry

There was a major shift in the BPO industry in the Philippines cooking these days along with the exit of the year as different Indian companies start to shift operations directed to Philippines shores according to some reports. This specific turnout of events were estimated by some BPO industry analysts and economists to carry with it optimism that the BPO industry in the Philippines will continue to drag to the country more of the share in the BPO market and become the top venue for BPO jobs and companies to deal offshore business here by 2008.

As Different Telemarketing Outsourcing Companies, BPO Companies, Medical Transcription Outsourcing Companies and Call Center (Contact Center) Outsourcing Companies in the likes of GXS, Convergys, HP, Client Logic, Sykes, Dell, IBM, Safeway, eTelecare, People Support and more are optimistic that there will be an even stronger support for the industry's growth by the Philippine government, there are also certain estimates that higher return on investments will pour down in the country by 2008 in the said industry. This is probably one of the reasons why the Indian venue of these different BPO companies shifted operations here.

Philippines Joins the AHIMA Conference in the U.S.

Combining efforts by the government in the recently concluded American Health Information Management Association (AHIMA) conference in the USA which estimates the Philippines to be a top destination for business ventures by big BPO and medical transcription outsourcing companies based in the health sector in America. Another reason for the major shift of the Industry is because India is said to have tripled its lease rates to the companies investing there in the BPO, Telemearketing, Medical Transcription Call Center (contact center) outsourcing industry.

Reasons BPO Companies will Swing to Philippines Shores

According to a presentation of Craig Reines (Teletech vice-president and general manager) in the Philippines last June, he mentioned specifically that India has tripled its lease rate in the last four years. Also wages of the common worker increased up to 13 percent while the attrition rate reached a high of 40 percent per month while the 30 % can be accounted to salary of the managers. This is a very significant figure based on the rate of costs for the different BPO companies (telemarketing outsourcing companies, medical transcription outsourcing, KPO, BPO and more...) in India and this can be some of the compelling reasons why the expectation of the Philippines is rising as New Year fast approaches. This has become a signal for many professionals in the BPO industry in India to move on to other venues and the Philippines is the most favorable for this business type second to India. There are presently other compelling issues that put the Philippines as a top choice such as, the ratio of labor force, western assimilation and availability of more professionals which can play as a major factor to convince Business Process Outsourcing (BPO) companies to put the Philippines on their top list this coming 2008.

A recent study showed that by 2010, India's labor force in the business process outsourcing sector could possibly reach twice it is now in a matter of four years. According to some reports, it is an estimated from 1million to 2.4 million. Other popular BPO analysts also reported that some companies in Singapore were also interested in taking part in the BPO labor and investment markets in the Philippines. For Singapore, this will be particularly in the offshore back-office end related services and jobs.

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