Outsourcing: A Growth Driver for the Economy
THE world economy has become a smaller global community influencing different markets in different parts of the world. One country’s economic downturn has a speedy impact on another—some to a big extent, others in a smaller way, but nevertheless in one way or another is being affected by the whole global economy.
In the Philippines, the service sector, particularly the outsourcing industry, is considered as one of the main drivers toward economic growth. According to Wikipedia, the Philippines is the second-largest call-center market next to India, based on a June 2008 study released by Oracle Corp.
The majority of the top 10 business process outsourcing (BPO) firms of the United States have set up operations in the country. The jobs provided by the outsourcing industry grew to 100,000 with total revenues placed at $960 million for 2005. Metro Manila and Cebu City are the locations of these BPO companies, although other cities are now fast becoming ideal destinations for offshore operations such as Baguio City, Bacolod City, Cagayan de Oro, Tacloban City, Clark (Angeles City), Dagupan City, Davao City, Dumaguete City, Lipa City, Iloilo City and Legazpi City.
With this influx of the top outsourcing firms in the United States setting up offices in the Philippines, the local service providers should learn to ride on the popularity gained by the country as a favorite destination of multinational companies.
For one, most of our local providers should find ways to effectively compete with the big potential market out there worldwide looking for experienced, cost-efficient, excellent customer service and technologically capable providers.
