ING Bank’s shared services unit in the Philippines remains optimistic that the country will remain a preferred outsourcing destination.
In a statement on Thursday, ING Business Shared Services (IBSS) said the Philippines was still a “captive offshoring” market despite concerns of a business process outsourcing (BPO) slowdown.
Hans Sicat, incoming country manager of ING Bank’s Manila branch, said: “The trend for captive shared services centers is to move more knowledge- and skill-based operations to countries where labor is not only available but also adaptable. So the Philippines continues to be a good location for many global companies.”
Unlike the typical business model where a BPO serves third-party vendors, IBSS, as a captive shared services center, handles in-house processing for ING’s Asia, Europe and North America businesses.
This allows ING to keep its attrition low as well as expose its staff to global practices and standards.
“Being a captive shared services center allows IBSS to develop a corporate culture and build employee loyalty and pride,” IBSS Country Manager Cees Ovelgonne said.
“In fact, more than 40 percent of the people we hired were referred by our employees. This means our employees love working at ING that they would even ask their friends and family members to join them,” Ovelgonne claimed.
“There is a vast amount of Filipino talent with knowledge and skills that can fuel the growth of captive offshoring companies like ours,” he added.
Overall, outsourcing revenue could moderate in the coming year, based on forecasts by ING Bank Manila senior economist Joey Cuyegkeng.
These revenues accounted for around 47 percent of the Philippines’ structural inflows in 2016 and this had a huge impact on the strength of the local currency.
Cuyegkeng said outsourcing investment pledges had already contracted by 22 percent year on year due to “competition from other Asian economies, on-shoring threats for US companies, security concerns, and uncertainties over incentives.”