RP eyes bigger share of European call center market
Thursday, April 10, 2008

MANILA, Philippines--Industry groups and government agencies have banded together to increase awareness of the Philippines as an outsourcing spot for European businesses.

Called Team Europe, the alliance includes the local European and British Chamber of Commerce and the Business Process Association of the Philippines (BPAP). The government side is represented by the Commission on Information and Communications Technology and the Board of Investments.

The outsourcing market is Europe is valued at around 20 billion euros or about $28 billion, according to Stephanie Weber, business development manager European IT Service Center (EITSC).

The country's market share, however, is just under two percent, highlighting the need to raise awareness of the Philippines.

Webber cited the growing outsourcing trend in Europe, even among small and mid-sized businesses. Companies there usually outsource to Eastern Europe due to similarities in culture and business practices, she said.

Farther out, India and China are the most likely destinations and given more priority by outsourcers, she added.

"The reason for this is not that people have more trust in India or China, but because they are simply not aware of the Philippines," said Webber in a briefing during the launch of Team Europe.

Team Europe plans to organize more "inbound" missions to the Philippines, bringing in European executives to the country.

"The Philippines has a good chance to take advantage of Europe," said Webber. "We have to show to them the IT industry here in the country."

The local outsourcing industry has traditionally catered to the US market but as Europe catches on, it becomes a lucrative market for offshore markets like the Philippines.

"Europe has a more stable currency and is less to be impacted by the US slowdown," said BPAP chief Oscar Sanez, who acknowledged the fact that there is a lack of positive news about the Philippines in Europe.