By Remedios V. Lucio
Contributor
February 9, 2010

The Philippine business-process outsourcing (BPO) industry has definitely grown over the last couple of years. Recently, during the 10th e-Services Global Sourcing Conference and Exhibition held at SMX, the revenues were reported to have significantly increased by 19% to $7.2 billion since 2008.

“It’s been a good year, especially in the second half of 2009, when the recovery started to kick in,” elaborated Gillian Virata, Business Processing Association of the Philippines executive director for information and research.   BPAP reported that the continuously growing sector provided more than 70,000 jobs for Filipinos last year. Meanwhile, the knowledge-process outsourcing industry also earned $1.19 billion.  It had increased by 35% in its revenues since 2008.  However, the IT sourcing sector lowered by 5.5%.  Experts foresee a possibility of attracting newer markets in animation, ESO and transcription this year.

According to the Global Services/Tholons Top 50 Emerging Outsourcing Cities report last October 2009, Philippines is considered as the second offshore nation following India.  Makati is the top location for HR outsourcing and Cebu is the number one emerging global outsourcing city.

Moreover, chairman Charlie Villasenor of the Procurement and Sourcing Institute of Asia said that “outsourcing and offshoring is all about supply management.”  He believed this was considerably one of the best years of e-services because there were more suppliers and buyers who attended the event.

He also said he believed in the talent, guts and resources of Filipinos thus leading to a possibly successful leadership in the BPO sector.  “We are getting a lot of global attention…and what I keep thinking about is that [the world] has finally found that the Filipinos have something more to offer than call centers.  And procurement BPO is a big part of it.”

Data privacy law was also discussed during the press conference.  Monchito Ibrahim, commissioner of the Commission on Information and Communications Technology, explained the importance of creating the Department of Information and Communications Technology to ensure the protection of important company data. He said it will be a way for the Philippines to measure up with other countries around the world.  “[BPO] can expect more support from the government especially in developing new markets,” Ibrahim said.

Last February, Salmat opened its BPO Solutions Center in Manila.  Dr. Philip Hadcroft, general manager of strategy at Salmat, said it will represent their strong commitment to the country’s BPO industry.  The company’s services will include “call centers, computer programming, web content management, data entry” and “IT-enabled services.”

Currently, there are 100 employees in their Mckinley Hill office.  They are expecting to grow to 800 employees in three years time.  He further noted that the facility was bigger than what they had expected.

November 3, 2009

The current economic downturn has turned up the pressure on Philippine companies, particularly the 800,000 micro, small and medium-sized enterprises (MSMEs), to find new customers for their products and services. At the same time, 25 million Filipinos and over a billion people worldwide use the Internet and search engines to find information on products and services such as prices, reviews and even where to buy locally. To connect Philippine MSMEs to these millions of Internet users at home and abroad, the Commission on Information and Communications Technology (CICT), Go Negosyo, Google, and STI Colleges are partnering to offer a Business Stimulus Package that enables local businesses to harness the cost-effectiveness and reach of the Internet to access a wider market and increase sales. Any MSME can take advantage of the package by signing up at www.google.com.ph/stimulus between now and December 15, 2009.

MSMEs in the Philippines are crucial to the country’s economy. They make up 99.7% of the country’s businesses and create 70% of the country’s jobs annually. In order for them to bounce back from a crisis that has left them with decreased sales and smaller budgets, they need to grow their businesses without breaking the bank. Google’s online advertising platform enables a business, no matter how small, to reach out to tens of millions of Internet users in the Philippines and 73% of all Internet users globally. At the same time, MSMEs only pay when a potential sales lead clicks on their online ad.

The Business Stimulus Package aims to help local MSMEs:

• Be available 24/7 to any potential customer by establishing an online presence on the Internet
• Grow the business cost-effectively through a user-friendly Web site and an online marketing campaign
• Connect with 25 million Internet users in the Philippines and over one billion globally

Any Philippine company that has a product to sell and a valid business permit can apply for the package. Participants will enjoy:

• A company Web site developed by STI College to promote their products and services. The first 200 MSMEs who register for the package and do not yet have a Web site will get it for free; subsequent participants need only pay a one-time fee of PHP3,000 to STI College for the Web site development work.
• PHP2,000 worth of free credits from Google to start an online marketing campaign with Google AdWords, Google’s online advertising platform.
• A free tutorial from STI College on starting a Web site, marketing products and services online, and using Google’s technologies to promote their business.

CICT commissioner Mon Ibrahim affirmed his support for the Business Stimulus Package, asserting, “In line with our mission to develop an ICT-enabled business community, we support this initiative as way to get more Philippine MSMEs online and use online advertising and Web sites to engage both a local and global audience. We are very excited to be part of a program that uses technology as the foundation of economic progress, and we look forward to promoting this package in our roadshows around the country.”

“The Philippine Center for Entrepreneurship, through its banner program Go Negosyo, supports this business stimulus package as a way of aiding hundreds of thousands of MSMEs in the Philippines,” said Joey Concepcion, founding trustee of Go Negosyo and Presidential Consultant on Entrepreneurship. Go Negosyo is actively promoting the package to its members and in its nationwide entrepreneurship events. “Through this partnership with Google, local entrepreneurs will have a new targeted channel to promote and grow their businesses without having to invest millions of pesos in marketing infrastructure typically only afforded by large companies. We are proud to be part of a program that will enable Pinoy businesses to sell their Philippine-made goods and services to the whole country and beyond, no matter where they are physically located.”

“Misconceptions about the high cost of technology and lack of technical knowledge have prevented local MSMEs from adopting technologies that can help them promote their business to more customers,” said STI President and CEO Monico Jacob. “The Business Stimulus Package addresses these concerns, as we will be building Web sites for MSMEs and teaching them how to maintain it in addition to training them on conducting an effective online advertising campaign. The hope is that these skills will enable MSMEs to become self-sufficient in sustaining their market presence online.”

Derek Callow, head of Marketing, Google Southeast Asia said, “MSMEs understand that the Internet provides a great opportunity for them to expand locally and into new markets across the world, but they don’t know how to get started or are unsure of the benefits of online advertising. With the Business Stimulus Package, we make it easy for local MSMEs to create a Web site and use it as an effective sales channel with a free trial of Google AdWords, an affordable, measurable online advertising platform.”

In addition to these partners, the Philippine Marketing Association (PMA) and the Center for International Trade Expositions and Missions (CITEM) have also pledged to support the package by promoting it to their members and attendees of their many events and trade shows.