According to latest industry reports, the Information Technology outsourcing market in Philippines is expected to double by the end of 2016. Outsourcing business in Philippines is heading towards a new direction with an increase in the number of call centres in Philippines. Abundance of skilled talents at a lower cost is one of the dominant factors for considering Philippines a more suitable option by many medium and small scale businesses. The current information Technology Outsourcing industry is growing at a rapid speed mainly because of the technological advancements and also the growth of knowledge based economy. As per industry reports, Philippines is the third largest economy which has got a good pool of technical talents. According to survey conducted by Meta group which is based in US, Philippines provide the largest number of Knowledge based workers at a global level.
Philippines have increased the Outsourcing revenue from $6 billion in 2008 to an outstanding figure of $12 billion by the end of 2011. This country provided outsourcing jobs to around 9, 00,000 people at the beginning of 2011 when compared to the previous figure of 3, 70,000. Philippines have been ranked consistently for its largest outsourcing business.
Reasons for higher growth in IT Outsourcing Market in Philippines is as follows –
- Skilled Workforce – The highly skilled and talented workforce in Philippines has helped them to gain an edge over other countries in terms of growth. Philippines have been highly successful in supplying technical talents to other countries.
- Low Cost – Outsourcing business in Philippines happens to be a low cost affair. When compared to their counterparts like US, India etc the cost of outsourcing remains low.
- Cultural Adaptation – As the call centre employees have the ability to understand all the intricacies prevailing in American culture, less cultural training is required. This in a way will reduce the employee acquisition costs.
The Outsourcing business in Philippines is rising at a phenomenon pace. More investment activities are being adopted by the country to compete in a better manner with the other countries. The outsourcing industry in Philippines includes higher value IT services. With a view to achieve much more foreign direct investments, the Philippines government is on the verge of introducing several fiscal and non fiscal benefits. This will lead to enhanced and consistent growth activities.
Philippines have emerged as one of the lowest cost destinations. Higher experience in the area of IT outsourcing along with the skilled workforce will definitely take Philippines to newer growth heights. According to Melchor, (Deputy Director of Industry Development of Information and Communications Technology) Philippines have the correct mixture of talents and skills to transform in to a main player in the global IT outsourcing industry. The Philippines local Information Technology Outsourcing industry also registered a growth of 37% by the end of 2011.