Philippines Dominates BPO In Revenues
February 18, 2011
With the recession having hurt the in-house departments of many large and medium sized firms, they are restructuring so that their non-core functions are outsourced to third parties. The term outsourcing has spread rampantly among companies in the developed world.
When looking at the benefits of outsourcing, there are a host of benefits to overseas firms, despite the controversy that engulfed the term in the U.S., Europe and in other parts of the developed world. By allowing to transfer some of the peripheral process to other providers in another part of the world, they are offered a product or service that is of excellent quality and strict international standards. In this way, U.S., Canada, Europe and Australia are outsourcing their core and peripheral operations to locations like the Philippines, India and China because labor is cheap at these places. There ‘s also a large supply of talented and skilled workers in these developing nations.
Outsourcing firms that offer business process outsourcing provide a number of services including software development, content development, animation, accounting, logistics, finance, technical support, medical transcription, legal transcription, account management, engineering and designing, payroll processing, auditing, financial analysis, and data processing.
Among the countries that offer BPO services, Philippines has had a reputation as a top bpo location in recent years. The BPO industry in the Philippines has gone up by 46%. This increase in business is largely the result of the creation of offshore call centers. Just for the year 2008, the BPO output was $6.1 billion. In the next year, the BPO sector in the Philippines was supposed to take in a figure close to $7.5 billion in terms of revenues. By the end year 2010, the IT outsourcing industry in the Philippines is likely to see as much as $11 to $13 billion in revenues. It is expected to provide employment for an additional 900,000 people.