PH remains ahead of India in ‘outsourcing’

Categories: Business Updates

Date Posted: 06 Aug 2014

Shore Solutions Inc., a local firm engaged in a boutique-style approach to outsourcing, is investing anew to further expand its operations as the Philippines remained to be the “best place for offshoring” services globally.

In a briefing following the Asia CEO Forum Tuesday, Shore Solutions chief operating officer Jonathan Smith noted that the company was investing roughly P90 million to add 500 more seats this year within its existing four facilities in Bonifacio Global City in Taguig City, and in Mandaluyong City, thus increasing total employment to 2,500 by yearend.

The company was likewise considering to put up by next year a fifth facility south of Metro Manila, either in Alabang or Laguna, which would have an initial 500 employees, he added.

The Philippines, according to Smith, continued to edge out India, which he said was estimated to have lost 10 percent of its business in the BPO voice segment to the country.

“The voice experience in Philippines is a far more positive experience. Culturally, there’s more of a mismatch in dealing with an Indian agent–it’s just that they come across as aggressive. (Talking to a) Filipino agent is a far more pleasant experience. And although the Philippine peso appreciation was fairly substantial, the voice work is still coming here,” Smith explained.

He added that the Philippines also boasts of low labor costs, highly skilled and diligent workforce, cultural compatibility with both East and West, affordable and stable telecom infrastructure and strong government support to the BPO industry.

Smith noted that there was a perception that technical roles were being sent to India and the voice roles end up in the Philippines. But this was not the case for his company, which has since been taking on heavily technical projects.

Smith explained that more companies were tapping the Philippine BPO sector for higher value-added business particularly in the development space, which included programming and IOS development, among others.

This was despite the country’s higher office lease rates and threat of unstable power conditions. In the case of Shore Solutions, for instance, its lease rates amount to P350 to P1,200 a sqm.

“(These issues) are not yet much of a concern, we have yet to see what will happen over the next few years. These issues won’t derail the interest of foreign companies but they need to be aware of these, which should be factored in the cost,” he added.

Shore Solutions offers contact center, BPO, IT (information technology) and professional services through a range of customizable outsourcing models to clients in Australia, United States, United Kingdom and the Philippines.
Written by: Amy Remo

Source: http://business.inquirer.net/175978/ph-remains-ahead-of-india-in-outsourcing

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