Outsourcing in the Philippines The Philippines outsource industry is expected to benefit a report released by McKinsey & Company. The report says that worldwide demand for outsourcing will grow to $180 billion in 2010. The countryâ€™s economic growth can be credited to companies outsourcing in the Philippines, with earnings growing to $11 to $13 billion in the same period. Philippines outsource sector growth Growing by 46 % annually since 2006, the BPO Philippines industry is led by the call center sector. Eighty percent of the Philippines outsource industry is made up of these call centers, which mainly cater to customer service and technical assistance. The Business Process Association of the Philippines (BPAP) says that 435,000 professionals were working for companies outsourcing in the Philippines in 2008. This is set to grow even further with the potential addition of 900,000 workers. The Philippine governmentâ€™s 2007 Investment Priorities plan offers many fiscal and non-fiscal incentives for companies outsourcing in the Philippines, allowing for more growth in the sector. As a result, foreign business owners are investing in the Philippines outsource industry, which currently has 15 percent of outsourcing market share worldwide. It is the third largest BPO industry in the world. The Philippine IT outsourcing sector IT outsourcing companies are also finding the country a good place to invest. The Meta Group, a research organization, says the country ranks first in knowledge-based job availability and fourth in labor quality in Asia. Major studios in Hollywood regularly seek out talent in such fields as web design, search engine optimization, and software development from the Philippines outsource industry. IT outsourcing in the Philippines features lower costs and high quality, making it a turn-key destination for IT firms worldwide. Different outsourcing fields in the Philippines The Philippines outsource industry also provides legal and medical transcription services in addition to its vibrant call center and IT outsourcing sectors. The strength of the Philippine legal transcription industry is local familiarity with American court proceedings, precedents, legal
terms, and rulings. The industry is also involved with transcribing recorded audio, such as depositions and court testimony, as well as legal document drafting. Companies outsourcing in the Philippines also offer medical transcription, data entry and seo content writing. The government has led in initiatives for training. The Technical Education and Skills Development Authority (TESDA) in 2006 presented a program called the Finishing Course in Medical Transcription, which trains potential Philippine transcription professionals. Government-led programs like these have helped in the growth of the Philippines outsource industry. Another growing sector is business process outsourcing in the Philippines. Back-office functions, which are not related to a companyâ€™s core competencies, are outsourced to third-party companies. These functions include human resource development, accounting, payroll, and virtual personal assistant services. Lower outsourcing costs The Philippines outsource industry presents advantages in terms of cost and spending. Indiaâ€™s employment costs rose by 15 percent in 2006. Because of that development, outsourcing in the Philippines has proven to be more affordable. Annual salaries for BPO Philippines employees range from $3,000 to $6,000, making it cheaper than other options.