MANILA, Philippines -- Contrary to claims that outsourcing in the Philippines is largely positioned at low-end voice services; the country is likewise strong in other areas, according to the head of local industry group Business Process Association of the Philippines (BPAP).

The marketing head of Outsourcing Malaysia downplayed competition from the Philippines, saying Malaysia is aiming for high-end outsourcing work rather than low-end voice services. Asked to comment on this statement, Oscar Sanez, BPAP's chief executive, noted that the local BPO industry is likewise strong in segments other than voice services.

"The key strength of the Philippines has been that we are able to offer high-quality services in all key sectors, from the well-known contact center services to high-value financial services, engineering design, animation and gaming and software development."

Referring to attrition rates, he added the industry has not been focusing on "labor arbitrage" anymore and the main pitch to investors has been "high quality, large pool of diversified talent that is very sustainable."

Not many countries can claim to have not only size of talent pool but also depth of quality, he said, a fact that was acknowledged by Outsourcing Malaysia's Bobby Varanasi.

Sanez said: "We have highly qualified engineers that are now doing international network operating centers in Manila, experienced architects doing design process and building management models, and financial experts doing equity analysis and research and more."

He added: "If I were Malaysia, I'd do exactly what the people in Outsourcing Malaysia are doing. They don't have any advantage in scale and cost so it is right for them to focus on a few niches that they can do well and promote them."

A recent report by industry analyst XMG pits Malaysia and the Philippines as close competitors, with revenue estimates this year of $3.6 billion and $4.1 billion, respectively, although the Philippines is expected to grow faster.

Sanez, meanwhile, stressed that the global outsourcing market provides many opportunities for many countries, citing smaller countries in Eastern Europe, Latin America and Southeast Asia.

"Even India's NASSCOM, the erstwhile market leader, has been quite generous in giving guidance to markets that are just starting because they know that the more countries promote their services, the better it will be for the growth of the industry," he said.



(Inquirer.Net)