September 13, 2011: It has been not so long that global companies started depending on service providers in Philippines. Today the Pilipino outsourcing market has drastically emerged as a perfect destination for many global giants. Companies from US and UK are exclusively depending on Pilipino service providers to tap the benefit of cheap labor and skilled employees in English language. But now the question for service providers in Philippines is whether cheap labor and good English is enough for them to maintain their designation of best offshore outsourcing market.
Business Process Outsourcing and Information technology (IT) service providers in the Outsourcing sector in Philippines have understood the importance of competitive advantage. Long run survival of the service providers directly depends on how advanced and efficient they are in providing unique services to fulfill the requirements of the clients. Availability of low cost human resource will not fetch the requirements. The service providers should be well advanced in many things to become competitively advanced.
At present the vendors in the nation is into financial and banking service, but to make them highly efficient more emphasis should be given on analytics and higher value financial services, Aubrey Joaquim (Ex-President, CIMA) suggested. He also said that just focusing on auditing and forensics will not fetch enough dollar values to the sector. The strategy should be to improve analytical skills and management accounting so that the clients can have more reasons for engaging themselves with service providers.
As far as Philippine is concern Indian outsourcing sector is a threat and that is because of competitive advantage that Indian IT and BPO companies prevail. Widely acceptance of innovations and technological advancement has made the Indian IT sector more advanced particularly in banking, insurance and financial services. More over the work force in Indian IT and BPO sector is well versed to deliver quality services.
Emerging shared service models and service providers are also a threat for offshore market. Many companies are finding it comfortable to depend on shared services even though it is quite expensive and the reason behind this recent change in attitude of companies is only because of the competitive advantages the shared service models deliver.
At present the Pilipino outsourcing sector is planning to implement new strategies to increase the volume of business. Government authorities are providing immense financial and technological assistance to expand high value BPO services in Philippines.
The trend from customer satisfaction has changed to customer delight, but today service providers are focusing on customer happiness along with delight and satisfaction to retain competitive advantages.