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Monday, February 13, 2006

BPO: Why outsourcing to Philippines?

PHILIPPINES Key Cities: Manila, Cebu City, Makati City

Labor Pool: The Philippines turns out 380,000 graduates annually, but only 15,000 of them are focused on technology. The country has cultural affinities with the U.S., is well-versed in U.S. accounting and customer service standards and has low employee turnover.

Costs: Higher labor costs than India; technical salaries range from $5,000 to $10,000 annually and back office from $3,000 to $8,000.

Government: Government exempts companies from export taxes, fees, dues and licenses if they open in one of the country's IT parks. Government's task force charged with development of IT and business process outsourcing (BPO) services.

Infrastructure: IT parks that have sprung up over the past 13 years fuel the export industry. Abandoned U.S. military bases left behind dependable telecom infrastructure.

Expertise: Accounting, finance, call centers, animation, human resources.
Major U.S. Customers: Procter & Gamble, American International Group, Citigroup.

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