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Manila took over Mumbai’s spot as world’s 2nd outsourcing city
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Manila took over Mumbai’s spot as world’s 2nd outsourcing city

The Philippine economy looks robust with two of its cities crashing into the top 10 of the Tholons Top 100 Outsourcing Destinations for 2014. Since its opening, the IT-BPO market in the Philippines has demonstrated great potential to become a global leader by leveraging a world-class workforce. The country’s I.T. Business Process Association of the Philippines or iBPAP, along with other local government agencies, promotes the industry, in part through campaigns designed to develop IT-BPO capabilities in additional hub cities. The Philippines’ strong infrastructure and distinctive performance in the outsourcing industry will help secure its world leadership position in the IT-BPO sector for the future.

Manila and Cebu lands top 10 for outsourcing

Several Philippine cities actively foster the business process outsourcing industry in the Philippines. Manila recently overtook Mumbai at the number two spot in the Tholons study, outranked only by the number one city, Bangalore, India. The Visayan city of Cebu ranked 8th on this list of the world’s most distinguished business processing locations. Five other Philippine cities also made it into the compilation, which is acknowledged as the de facto ranking for outsourcing cities worldwide. Among other contending Philippine cities are Davao City at 69th place, Sta. Rosa, Laguna, 82nd, Bacolod City at 93, Iloilo City at 95th spot, and Baguio City, 99th.

Manila is Mumbai’s most competitive adversary

Manila, dislodging Mumbai as the world’s second most competitive outsourcing city, establishes leadership in the IT-BPO call center market because of its workforce’s linguistic proficiency in English and Spanish, and the great number of accredited accountants trained within the country. Tholons, a strategic advisory firm for global outsourcing and investments, recognized the consistent growth rate of contact support, finance, and accounting in the Philippines where IT-BPO also exists in industries such as medical transcription, animation, and human resources. Information Technology Outsourcing (ITO) and Knowledge Processes Outsourcing (KPO) are also strongly represented within Manila’s capabilities. For offshore backroom operations, the Philippines is preferred by most U.S. companies over India because of the Philippines’ comprehensive language training, including a neutral accent, and the adaptability of its certified accountants in multiple accounting standards.

IT-BPO receives support from Philippine agencies such as iBPAP

One of the fastest growing industries in the world and in the country, IT-BPO in the Philippines receives consistent support from local advocacy groups, including iBPAP. These agencies promote the Philippines’ grown potential in outsourcing while supporting the industry. One such initiative is the Next Wave Cities Road – a program that identifies ICT hubs outside of Manila.

iBPAP also is proactive in strengthening the Philippines’ global leadership position in the IT-BPM space. The organization ensures that it undertakes initiatives that can further the development and growth of the outsourced I.T. industry in the Philippines and has made a goal of adding three more local cities to the Tholons ranking and eventually top ranks in the coming years.

For 2016, the Philippines is targeting $26 billion in revenue and a 1.3 million member labor force from the IT-BPO industry. Initial estimates indicate strong projections as records in 2013 reveal near $15.5 billion in revenue, a 16% year-on-year revenue growth, and full-time employment totalling 900,000 or a 16% increase. As the competitive Philippine workforce and interest groups such as iBPAP work together to grow the Philippine outsourcing capabilities, both in scope and geographically to new cities, all indications point toward continued growth in this booming industry.

Reference: BusinessTech Insider, January 23, 2014

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