MANILA, Philippines--Is China really worth looking as a business process outsourcing (BPO) market? Could be but not quite yet, according to the head of a local industry group.

The Philippine BPO industry has largely catered to US customers and most of the major players here have been spun out from American companies.

Oscar Sanez, head of the Business Process Association of the Philippines (BPAP), believes the industry remains "Western-centric."

"There is a lot more opportunity coming from these existing markets," Sanez said during an e-Services briefing last week.

The BPAP chief, however, does not completely discount China as a market for outsourced services. China itself is looking to become an outsourcing destination, investing in infrastructure necessary for BPO operations.

"From our understanding, the BPO market in China is already [there] but it addresses largely the domestic market," Sanez said. "But there could be room for support services that require English capability especially as more companies there become global."

One significant factor is cultural affinity. The Philippines is widely acknowledged for its affinity with Western culture, which makes it an ideal destination for US companies.

On the other hand, China is part of a larger Asian culture. The city of Dalian, for example, is reportedly becoming an outsourcing hub catering to Japanese and Korean companies.

"China represents a new frontier for us," Sanez said. "We need to understand a lot of things for us to devise a strategic plan on how to address potential opportunities."




(Inquirer.Net)