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Business Process Outsourcing in the Philippines Essay

Currently, the Philippines is considered to be an important offshore player driven by several factors such as the following: increasing government support on IT (Information Technology) investment, large pool of graduates with English communication skills and knowledge in CIT (Information Communication Technology) far superior to India which has led many impasses to close down Indian operations and move them to the Philippines, reliable and reasonably priced telecommunication infrastructure, low cost high quality locations, and growing buyer trends on outsourcing.

Call center industry operates in the internationally, and is considered to be highly fragmented and extremely competitive. BOP has been one of the fastest growing sectors in the country. In the global arena, the Philippines consistently ranked among the top five BOP locations. The country continues to be an attractive location for offshore voice

BOP (call center) services due to its supply of English-speaking professionals, low labor costs and availability of a good telecommunications infrastructure. In 2011, the Philippines was the country with the highest number of employees at call centers with about 400,000 employees as reported by the article New York Post: Philippines is the New Capital of Call Centers of Good News Philippians (February 2012). The majority of the BOP facilities

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are located in Metro Manila and Metro Zebu.

Others are located in regional economic zones such as Backlog City, Baggie City, Canaan De ROR, Clark Angles City), Dugan City, Dave City, Tactical City, Demagogue City, Lip City, Lillo City, Legalize City, ‘lagan City, Along City and Returned City. However Boos are not concentrated in call center industries only as mentioned above. They also have other sectors including legal and medical transcription, finance, logistics and accounting, and software development animation.

Call Center Industry – It comprises 80% of the total BOP industry in the country. Call center industry employs agents who handle inbound or outbound traffic via telephone and other available channels. Legal and Medical Transcription – Under BOP companies of which do mostly medical reports, discharge summaries, operative reports, therapy/rehabilitation notes, chart notes, and hospital and clinic reports using software and equipment for the U. S.

Nine companies are registered doing medical transcription in the Philippines in 2003 increased to 43 in 2008. Finance, bookkeeping, account maintenance, accounts receivable collection, accounts payable administration, payroll processing, asset management, financial analysis and auditing, management consulting, inventory control and purchasing, expense and venue reporting, financial reporting, tax reporting, and other finance-related services; as well as for logistics management, and cargo shipment management.

Software Development and Animation – Fueling the recent growth spurt in the outsourcing industry in the Philippines are more higher-end outsourcing services such as Web design, software development, and animation (Shame 2006). Filipino animators do well in the global market for animation, which is growing due to the increasing popularity of animation as an entertainment medium not Just for free and cable TV and the movies but also for computer games, as well as an advertising tedium, a graphics medium for Internet content, and an information and educational tool.

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