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Globalization has made the seamless delivery of information technology (IT) and business process (BP) services across countries possible. The increasing demand for IT and business process outsourcing (BPO) services has opened the doors for emerging IT and BPO destinations such as India, the Philippines, China, and Russia and was estimated to reach as high as US$180 billion in 2010. The Philippines, in particular, has emerged from a call center outsourcing destination to a competitive and top knowledge process outsource (KPO) destination catering to higher-end services such as accounting, e-commerce, web marketing, web development, software development, legal services, and others. Not only that clients reduce and control their operating costs but also, maximize productivity and get high quality and reliable services. Some factors to be considered in choosing a KPO destination are the quality of human capital, location, infrastructures, and costs.
Labor force has been one of the Philippines’ advantages in their region. As reported by a reliable and reputable international investment consulting firm, the Meta Group, the Philippines ranked 1st in terms of knowledge-based and skilled workers availability. In addition, as reported by the Philippine EcoZones Association, the Philippines is the largest English-speaking population in Asia and 3rd in the world, offering a large pool of educated and computer-literate manpower that can provide world-class financial, legal, accounting, and other support services. Aside from English proficiency, literacy, and educational background, the Philippines’ notable cultural affinity to the US makes it easier for both parties to conduct businesses.
The Philippines is strategically located in the heart of Asia and is at the crossroads of eastern and western businesses, giving critical entry point to more than 500 million people in the ASEAN market. In addition, to being physically strategically located, the Philippines has been considered the best outsourcing location because of it’s powerful and reliable ICT infrastructure, availability of relatively cheap prime commercial real estate locations, and low capital cost of qualified personnel.
According to the Asia-Pacific Development Information Programme, “Internet-wise, the Philippines is part of the US Internet at the end of a very long string across the ocean.” This statement is based on the observation that foreign traffic, mostly from US, makes of almost 90% of the consumer’s consumption. In addition, the Global New e-Economy Index released in 2001 reveal that the Philippines ranked 4th worldwide in terms of ICT competencies. Though dial-up connection is the commonly used mode of Internet-connection, the Philippines provide both fixed and wireless broadband capabilities.
One of the main reasons why businesses outsource is to save on operating costs without sacrificing the productivity and quality of output. Outsourcing companies reveal that businesses who operate on-shore usually achieve cost savings of only 5-10% while businesses who operate offshore, in the Philippines, through KPO providers achieve cost savings of 40-60% due to the relatively cheap cost of labor. Through strategic operation, premium human capital development, and the best technology platforms, OAH’s production facilities in the Philippines will deliver superior work outputs to provide a solid impact on our clients’ revenue and business equity.