Philippines top choice among US companies for finance, BPO services
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MANILA — Consul General Cecilia Rebong of the Philippine Consulate General in New York, USA reported to the Department of Foreign Affairs that a capital markets analyst has said that the Philippines is the top choice among a growing number of major U.S. companies for finance, technology, telecommunications and consumer products, and accounting business process outsourcing (BPO) services.
Consul General Rebong said this was essentially the message of Ms. Cynthia Houlton, Senior Analyst of RBC Capital Markets, in speaking on “Global Sourcing and Finance and Accounting Business Process Outsourcing Services” during a well-attended business networking reception organized by the Business Process Outsourcing Council, the Philippine Consulate General, and the Philippine Trade Office in New York on 23 May 2007.
Welcoming the guests who were mostly CEOs, presidents, and managers of major American financial, banking, and investment companies based in New York, Consul General Rebong said, “The reception is only our second offering since the creation of the Business Process Outsourcing Council one month ago, and the goal remains to be to facilitate dialogue, information, and greater understanding of the Philippines Business Process Outsourcing (BPO) sector among potential global partners.”
Ms. Houlton reported that among the US companies to consider the Philippines as a top destination for their offshoring services are ACN (Accenture), Genpact, ICT Group, Inc., TTEC (Teletec Holdings, Inc.), ETEL (eTelecare Global Solutions, Inc.), and PCPT (People Support, Inc.). Ms. Houlton said that these companies posted phenomenal revenue growths during the first quarter of 2007 from their offshore BPO/Contact Center operations.
The main speaker, Mr. Gary Reddick, Senior Vice President of AIG Worldwide Life Insurance, shared why his company selected, and is now running a business process operation in, the Philippines, stating “By locating in the Philippines, we are able to leverage AIG’s strong local presence in an environment that is highly conducive to US-focused outsourcing operations.”
AIG American General is the second largest life insurer in the United States. In 2002, it formed AIG-BPSI as a joint venture between AIG General and Philamlife, the largest and most diversified insurance company in the Philippines. AIG-BPSI was to provide outsourced backroom processing as well as contact center services to AIG and its various customers worldwide. AIG-BPSI launched full operations in January 2003. In April 2006, AIG American General completely bought out Philamlife interests in AIG-BPSI.
Mr. Reddick also noted that AIG selected the Philippines because of the country’s advantages over alternative Asian sites: Labor costs equivalent to China; lower and more stable than India; prevalence of spoken American English; cultural and social affinity with the US; modern and stable infrastructure such as water, power, roads, telecommunications; large pool of qualified college graduates seeking white-collar employment; access to specialized skills aligned with US professional standards; government support and tax breaks for the industry; and more familiar environment for expatriate trainers and managers than other Asian alternatives. He added that having a local partner like Philamlife helped a great deal.
“The ‘advantages’ cited by Mr. Reddick clearly show that the Philippines’ attractiveness as a BPO destination is no longer limited to cost-reduction but also to being able to provide global partners with a human resource possessing the right skill sets and competencies supported by a sophisticated telecommunications infrastructure,” Consul General Rebong observed. END
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Transport of flu patient to DMC done under strict protocol
July 6th, 2007 at 12:16 am
This is a very good news, i hope this leads to an increase in the investments for the Philippines in the BPO industry.
This could mean more client for webmaster SEO in the Philippines also.
April 16th, 2008 at 11:33 pm
there are already a lot of BPO industries that came here in the philippines, ahd they are continuously growing. this should have caused a great increase on Phil revenue already and made the economy better. however, on the current philippine scenario, where goods cost higher and people only get poorer, i don’t know where this revenue goes. makes me doubt about the government again
April 28th, 2008 at 9:04 am
hi there… there are so many BPO companies now in the Philippines and in fact Philippines rank in the most outsourcing companies in the world. Filipinos are very lucky because they are teach well on how to speak English. that is the first advantage of the Filipinos. they can communicate to other people from other country well through language. have a good day!!
May 17th, 2009 at 1:37 am
I’m excited to see outsourcing expanded and growing rapidly in the Philippines. Our office in Davao City was an exciting addition for us and we hope the trend continues.