From its impact, the global financial crisis has spared few countries or business sectors however some countries and sectors have found themselves in a much better position to not only weather the storm but to better position themselves for the coming rebound. For instance, the Philippines and its outsourcing sector and two recent studies show just how the country’s outsourcing industry is not only surviving but it also prospering. It was noted that while the Philippine Outsourcing sector’s growth rate dipped to 15 percent during the first half of 2009 in the first report from the World Bank. From the 26 percent growth rate for 2008, it is projected to grow by about 20 percent for the entire year. The quickest to react with a large number of banking groups planning to either significantly expand or to establish an outsourcing presence in the Philippines is the world bank noted that certain sectors have experienced substantial disruptions.
The Philippines with its favorable cost structures, English language and technical skills, the world bank also noted that many players in or clients of the global outsourcing industry are pursuing an India plus one strategy, it seems to have established itself as the preferred backup choice. The Philippines still needs to pursue structural reforms to address different business climate related issues and problems with the country’s education system.
A white paper entitled The Philippine Business Process Outsourcing or BPO sector int he second report and also the Global Financial Crisis that is written by Ceferino S. Rodolfo a professor at the University of Asia and the Pacific or UA&P in the Philippines. A confluence of factors that include the global slowdown and problems in India are providing the Philippine outsourcing with an opportunity to consolidate its position as a preferred locations for Business Process Outsourcing Services.
According to Rodolfo, he noted that: slower economic growth is expected to lower the inflationary pressure on critical cost items such as rent salaries and telecom expenses, The Philippine economy in general though has remained relatively stable compared with other economies, A fairly stable or predictable depreciation of the Philippine Peso as a result of the Global Financial crisis will have a positive impact on the bottom-line of Philippine based outsourcing operations, Certain types of transactions such as outbound calls for credit collection are increasing and Hiring freezes and retrenchments both at home and abroad are making Business Process Outsourcing and call center jobs more attractive.
The crisis gives the country’s outsourcing sector, the opportunity to change negative perceptions about Business Process Outsourcing or call center related work and to present an image to potential employees that the outsourcing industry provides a globally oriented career path. The crisis is giving the Philippines an opportunity to address any longstanding barriers to growth and grab a bigger share of the outsourcing pie.
Outsourcing is the fastest growing in the industry because of its service and benefits that people earn. An outsourcing is the way to have a best development and performance in the country and business.
REFERENCE:
http://outsourceportfolio.com/philippine-outsourcing-sector-impact-global-financial-crisis/
http://www.blogster.com/philippine-outsourcing/philippine-outsourcing-and-the-global-financial-crisis-impact
