Cebu needs to identify niche in the KPO services industry

CEBU, Philippines - While every major city and province in the Philippines are preparing to take advantage of the Business Process Outsourcing (BPO) investments opportunities, Cebu should focus on finding its niche in healthcare and information management services.

This is the suggestion made by Tholons managing director for South East Asia Jonathan De Luzuriaga expressing his strong confidence that Cebu will be able to get the multi-million dollar market of these two services under the Knowledge Process Outsourcing (KPO).

The name of the game now in attracting BPO investments is no longer the availability of good English-speaking talent pool, but recognizing the core competency zeroing in to promoting niche skills.

De Luzuriaga, who was in Cebu recently to conduct a BPO/IT industry briefing organized by real estate developer Apple One Properties, said that as Cebu has taken off as the voice segment of BPO, and now its time to develop skills for high-level outsourcing needs.

“We can not be everything and anything to everyone,” he said adding that Cebu has an enormous opportunity to grow in the healthcare and information management KPO services, as other cities in the Philippines have slowly recognizing their respective core competencies.

Davao City and Cagayan de Oro City in Mindanao have slowly proven its niche in financial service outsourcing, while creative outsourcing capability is now eyed in the northern part of Luzon, specifically Vigan.

Cebu with its good number of schools and universities offering medical courses can leverage on this niche, as well as the availability of good information management experts including lawyers, among others.

The medical transcription segment on the other hand, although it is still holding and not “dead”, is considered as lower-end KPO service. The trend now, he said is providing analytical services to outsourcers.

Although, there is still room to attract other segments in the KPO sector, Luzuriaga believes that Cebu can achieve faster BPO growth in leveraging these two identified skills.

KPO is a segment in the broad outsourcing industry that has more intellectual requirement, providing workers higher pay-check than the usual voice-BPO jobs.

The KPO sector is seen to grow at a conservative estimate of 30 percent to 36 percent this year, which is closely comparable to India, he said.

“Early and existing locators have discovered that the Philippines is more than just voice, but it has huge potential to attract the high-value outsourcing jobs under the KPO segment,” he stressed.

Luzuriaga, who is also the executive vice president of CIBI Information Inc. said that in other countries especially India, zoning in the BPO sector is being practiced.

This effective approach should also be applied in the Philippines. Cebu for instance, should take the lead in recognize its niche in the KPO sector, so that opportunities will be spread effectively.

Attracting voice BPO is no longer as exciting now as before. He said any voice BPO can locate in any cities in the Philippines, as Filipinos in general are good English speakers. (FREEMAN)