Philippines, the preferred alternative production site for Japanese manufacturers

August 25, 2011: Japanese firms are planning to start manufacturing operations in the Philippines. Business magnets in Japan feel that the migration to Philippines is a crucial decision taken to avoid the risk factors involved in continuing business operations in the country.

The recent disaster struck on March 2011 in the nation has widely affected trade in Japan which has resulted in a damage of almost 300 billion dollars. It is still a recovering stage for the country as a whole. At this point of time, migrating to another country like Philippines is seen as a good option.

Many Japanese companies have already started planning to operate in Philippines. Japan based companies such as Toyota Motor Philippines Corp, has already started outsourcing the auto parts. The outsourcing fever is also going to affect firms which are into constructions, exports, manufactures of agri based products and even Non-voice Business Process Outsourcing (BPO). It should be noticed that a Japanese company which is in to IT infrastructure and IT service desk has already started its operations from Philippines. The company has many other units around Asian country like China.

The Japanese Outsourcing firms and service providers are also expected to migrating. The recent unit started by a Japanese BPO company in Philippines might be a beginning for these. Moreover the firm is also focusing on employing 500 employees in the country and anticipating a business of 10 million yen in the first five years.

Now, this shows that the starting operation in Philippines is an ultimate benefit for the Japanese companies. Philippines are an ideal location for outsourcing with abundant man power and westernized culture. It can also deliver superb hospitality and highly skilled professional well versed in English language. The nation can also provide improved adaptability to changing environment, increased control over business outcomes, diversification and expansion of talent pool, ability to refocus on bottom line and last but not the least reduction in expenditures.   

Philippines allow removal of non-core day to day processes and a platform to concentrate on the facets of the business for smooth uninterrupted business operations. Attracting more companies to the country is like a mutual benefit where the nation will have more employed citizens.   

The trend is seen not only in BPO industry, there are many other sectors which are focusing on shifting the functions from Japan to Philippines. It is always better to reduce the expenses and expand capabilities simultaneously apart form sticking in highly risky, fluctuating and unstable environmental conditions.  

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