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Wednesday, March 05, 2008

 

BPO industry broadens market
reach, courts Australian firms

By Likha C. Cuevas-Miel, Reporter

THE local business process out-sourcing (BPO) industry is courting Australian companies into setting up offshore operations in the Philippines to broaden its market and ensure the continuous growth of the sector.

Philippine-based BPO firms can tap the largely unexplored off-shoring segment of Australia to help the growth of the industry, which has been dependent on the US market, Oscar R. Sañez, Business Process Association of the Philippines (BPAP) chief executive, said on the sidelines of the merger ceremonies of Jones Lang LaSalle and Leechiu and Associates.

New York-listed Jones Lang LaSalle has acquired the local consultancy firm to take advantage of growth prospects in the BPO market. The merged firms service JP Morgan Chase, Deustche Bank, Citibank Savings, Convergys, IBM and HSBC. They have exclusive relationships with six of the 12 largest BPO firms in the country like TeleTech and eTelecare.

In April, BPAP and the Department of Trade and Industry will send a trade mission to Sydney and Melbourne to persuade firms to outsource to the Philippines.

“Outsourcing in Australia is already a big industry but offshoring is not as big. We can tap into that. We think there is [a] big chance because they need more talent and they need to lower their costs. We will certainly offer 60-percent savings,” Sañez said.

Besides increasing the number of outsourcing and offshoring operations in the Philippines, having Australian clients would be better for BPO workers due to the minimal time difference between the two countries compared with that of the US.

Sanez said 93 percent of BPO firms’ clients in the country comprise of American companies but only 20 percent of Fortune 500 companies have engaged Filipinos for their back office operations. Therefore, there is still a huge room for growth for the local BPO sector, which is seen to expand until 2015.

In addition to Australia, BPAP would also further market the Philippines in the United Kingdom. Lack of awareness, not differences in accent, is a barrier to expanding UK outsourcing and offshoring services in the country, Sañez said.

  
 

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