Economic crunch a boon to outsourcing industry

The global recession and the consequent cuts in IT spending in the United States and other developed countries are proving to be a boon to the country’s emerging IT outsourcing industry.

The need for foreign firms to trim their operating expenses is encouraging them to outsource their IT requirements to competent e-services companies in other countries, particularly the Philippines, which can deliver on a global scale at a much cheaper cost and still earn huge dollar income in the process.

E-services outsourcing also enables foreign firms to downsize or do away with such peripheral and support activities and consequently focus on their core competencies or mainstream operations instead.

So far, the country’s biggest market comprises US firms, which have begun outsourcing their e-services requirements to Philippine companies.

Many from Europe are expected to do the same, particularly in the field of data and call or contact center operations wherein the country reportedly enjoys a distinct advantage over its closest rival India.

Reports say that of the 1.5 million contact center seats available in the US market, the Philippines has cornered almost 10,000 as against India’s only 1,000.

The Philippines has emerged as a viable global outsourcing capital because of its cheaper labor, vast pool of English-speaking IT professionals and modernizing telecom infrastructure.

Another advantage is the country’s abundance in intelligent buildings where transnational firms can immediately locate and centralize their global e-services operations.

These potentials are now being harnessed by the Department of Trade and Industry (DTI), which is holding an outsourcing seminar to help Philippine-based companies cash in on this new business trend.

Organized by the DTI through the Center for International Trade Expositions and Missions (CITEM) and Fiera de Manila Inc., the event dubbed "E-Service Philippine Outsourcing Seminar" will be staged at the World Trade Center Manila on Feb. 7-9.

The seminar will also help Filipino IT professionals develop their skills in managing offshore projects as it will roll out outsourcing fundamentals and the best industry practices, promote direct interaction with technology experts, and present the lessons learned from case studies.

Inquiries can be addressed to Fiera de Manila (tel. nos. 896-0639, 899-6893, 896-0636, fax 890-2101 and 896-0637, e-mail address [email protected], or website http://www.fmi.com.ph or http://www.e-servicesphils.com).

Seminar topics include How to Make Request for Proposals, Managing Risks/Rewards in IT Outsourcing, Managing Call Centers/CRM, Managing Business Process Outsourcing (BPO), World-class Animation Projects, Cross-Cultural Issues, Stages of Project Management, and Technical Support.