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  1. 1. Philippines : An Outsourcing Focal Point By Michael S. Murillo Outsourcing - an eleven-letter word that even Mr. Webster cannot define. How come that this simple word become one of the brightest spots in Philippine economy. Mr. Google (known as Mr. Know-it-all) defines it in a simple but an effective way. He states that Outsourcing is the act of getting products or services from other countries for business purposes. Aside from their famous athletes in boxing and billards, breath-taking natural resources, and beautiful women, Philippines is also known woldwide because of sending worldclass products and services through out the planet. Being the second-largest english-speaking country, there is no doubt that the Philippines become one of the most famous Outsourcing hub in the world. Call center Outsourcing Competition is heating up internationally. But do you know that the competition exists even within the country? As of now, Philippines is with 20 call centers which offers outsourcing operations. Among the Asian Nations, India and Philippines are rivals in terms of the business of Outsourcing. India seems to be the biggest threat on the rising status of the Philippines in the Outsourcing world. Talking about the popuplation of call center agents here and in India, agents in RP may be compared to a snow ball (10,000 agents) while agents in India is an iceberg (300,000 agents). According to "A.T. Kearney 2005 Global Services Location Index," the republic of the Philipines (5.78) ranked 4th. India (6.87), China (6.14) and Malaysia (6.07) are the top 3 Outsourcing countries. They based the study according to the countries' Financial Structure, Business Environment, and People and Skills Availability. If that is so, then why outsource in the Philippines? Bear in mind that the population of call center agents is not the greatest factor to consider in the world of Outsourcing; It is the quality of service. Philippines, being an American colony for 50 golden years has a Western-influenced culture. Pinoys have a very good demand of the Western Culture and English language. In addition, they also have strong customer orientation, they possess the values of hospitability, and compared to their other Asian neighbours, Philippines labour cost is considerably lower. Having the quality and professionalism of Philippines labour force for a cheap price is really a jackpot. Try it for yourself. Sources:
  2. 2. msgr&x=wrt& on+services+index&d=PebPHBbfMP-N&icp=1&.intl=us ---------------------------------------------------------------------------------------------------------------------------- RP: A GOLIATH IN OUTSOURCING by: Michael Murillo Blowing numbers of mushroom-like call centers hit the Philippines. In fact, Romulo Neri, the Secretary for Economic Planning mentioned that "For now, call centers are at the forefront of outsourcing." "But we should diversify our outsourcing work beyond call centers," he added. Talking about call center businesses, Republic of the Philippines is one of the best hub because of large supply of graduates with computer engineering/science and business communications as their courses. Board of Investments, Business Process Association of the Philippines together with the Commission on Information, Communication and Technology conducted a study that states that investments for outsourcing in the Philippines on the present year is about P12 billion. Four years from now, it is expected to have more than 1 million individuals who will be employed in the industry compared to that of today which is only around 230,000. Today, Outsourcing-related jobs is 44 percent higher than last year. Aside from IT professionalism, the cost of outsourcing in the Philippines is definitely cheaper compared to the cost of Outsourcing in India, the champion in the field of outsourcing. But even if the cost of Philippine Outsourcing is getting cheaper and cheaper, it still gain more and more revenues as the year pass by. In 2001, the revenues brought by outsourcing market in the Philippines is more or less $1 billion dollars. Today it is almost four times higher. According to Global consultancy Mckinsey, it is estimated that four years from now (2010), the revenues coming from Philippine Outsourcing could reach an incredibly $10 billion dollars from its 120 companies that outsource. Outsourcing companies are scattered all over the Philippines such as Ambergris and Sykes. The major outsourcing spot in the Philippines are Makati (country's main financial district), Alabang, Angeles and Cebu. When a foreigner hears the word "Philippines," he would probably think that this country are decades late when it comes to modern technology. If it is so, let him visit the Philippines and show him the gigantic offices of Siemens, HP, Ericsson, PLDT and other Goliaths in the field of communication technology.
  3. 3. Looking for a world-class call center? Why not try the quality of call center in the Philippines? Source: ---------------------------------------------------------------------------------------------------------------------------- HOW MANY SALES HAVE SLIPPED AWAY? How many sales have slipped away? Does your company suffers because of few number of sales? What do you think is the problem ? Is it about the employees? Is there something wrong with the technical aspects? Or maybe the problem is in you, the owner. Here are some tips for you to improve the shrinking status of your call center. A former agent and Manager named Mike Aoki, introduces a course (applicable for inbound call centers) to help the call centers in improving their standing and to be more competitive in this industry. The course teaches the reader the aesthetics of "sales through service." Always remember that if you show the so-called "customer care," the customers will become more comfortable talking with you. Dont be afraid to have a small talk. Bear in mind that the way you communicate with your customer reflects to the customers view on the quality of your product. To determine the needs of your customer, good questioning and listening skills is a must. Before having a conversation with your customer, think of some questions to ask. Listen carefully and be attentive. Be sure that you will not repeat asking same questions, that may irritate your customer. You should make it a point that your customer will be satisfied (or even amazed) with the quality of your product. Use your communication skills and convincing power to make it possible. Use key "buying" phrases that maximize the likelihood of your customer to purchase your product. When the customer question the quality of your product, try your best to show him the bright side of having this product on his own hands. Objection-handling techniques will surely gain you more sales. If you envision that your customer is convince to buy your product, that does not mean you have to be comfortable. This one of the most critical parts of the sale because once you did a single mistake, the customer may change his mind and put down the phone. During this scene, you need to maximize your convincing power to ensure that your customer will buy your product. To close the sale, you should distinguish the buying signals of the customers. Hope this tips could help you. Thank you for reading.
  4. 4. Source: ---------------------------------------------------------------------------------------------------------------------------- COMPLETE IDIOT'S GUIDE TO SETUP A CALL CENTER by Michael Murillo Want to earn salary that ranges from $200-275 per month? Then apply in a call center in the Philippines. What are you waiting for? You can enjoy high salary and gain applicable work experience. But, having this amount of money each and every month is not that easy, sometimes, you need to do your work even if it is in the middle of the night. When foreigner dials a "1-800" number, they might think that they are talking to an individual of the same race as them. Well, they were wrong because it is a Filipino talking on the other end. Want to satisfy your outsourcing needs? Then let the Philippine call centers be the solution to your problem. For half a millenium, United States colonized Republic of the Philippines that is why Filipinos are familiar with American Culture and can speak Americanized English clearly, not all the major outsourcing countries have that quality. Foreign customers will be more comfortable if they believe that the person they talk to is from the same race. Well in fact, the person that they are talking to has never set even his single foot on their countries soil. Because of the quality of English the Filipinos exercise, you can fool foreign customers that they are not talking to a person outside of their country. When setting a call center in the Philippines, you may choose from the brightest spots of outsourcing, Manila and Cebu. This two cities are also the biggest cities in the country. Let's say that you intend to locate your call center in Makati, Metro Manila. It is a good choice because Makati is known as the country's main financial district. The atmosphere inside the call center should be relaxing and the agents should be provided with some amenities. For those who work overnight, they need a place to cook their food because it is difficult to look for a convinient store in the middle of the night. Find a place where there is a 24-hour convinience store where your employees may hang-out during their breaktime. After having the perfect place for your call center, next step is to setup the technical aspects. All you need are workstations, broadband connection and of course, do not forget the server. When technical aspects are all ready, next thing to do is to hire agents. This is not a difficult part because most of the fresh graduates want an elite call center job. All is ready. You should also be ready to receive large amount of dollars because of choosing Philippines as your call center's location. Source:
  5. 5. ---------------------------------------------------------------------------------------------------------------------------- BEING AN OUTGENERAL IN OUTSOURCING The Pearl of the Orient (Philippines) wins praise when the Department Of Labor and Employment (DOLE) declares that one of the brightest spots of the Philippines today is its outsourcing business. It is documented that the Philippines is a hub for outsorcing and gained the trusts of the customers not only from within the country but worldwide. GOODBYE OUTSOURCING, HELLO EXPORTING? According to the Chairman and chief technology officer of Infoweapons Mr. Lawrence Hughes, time will come that the outsourcing market in the Philippines will lost its momentum. Its only temporary and will die down as years pass because of a very tough competition within its fellow Asian Nations; specifically China and India, the top outsourcing giants. On the other hand, he added that industry in an another form could give the same or even brighter spot in the Orient's Pearl. He mentioned, why did not the Filipinos give attention to the product-based companies which is more productive? There is a possibility that exporting Filipino- made products would be a great or even better source of revenue rather than outsourcing because of its tough competition today. Giving an effective and convincing example is one way to win a debate or a simple conversation. Why not set his own company as an example? Infoweapons and other firms such as the Cebu IT firms gain praises both in and out of the country. As a matter of fact, Filipinos can produce high caliber, world class products. The US Department of Defence prove that right. Remember the Cebu Watershed? The Chairman of US Department of Defence once mentioned that the Watershed in Cebu is years ahead than other products of the same kind in the world market. WISE OUTSOURCING: WHY NOT OUTSOURCE? With the help of "Wise Outsourcing," could you believe that companies can save for upto fifty percent on their operating costs? Yes it is possible, only, if you outsource wisely. Compared to the leading outsourcing country which is India, Outsourcing in the Philippines is definitely and evidently cheaper. Forget about high expenses on labor because outsourcing in Philippines (and in China) offers the cheapest but the most efficient labor. Dont problem your labor training costs because you will be assured to get professional human resources. In order for the companies to survive in the competition at the corporate world, organizations and companies prefer to outsource because outsourcing is proven to cut costs for the company to stay alive and breathing. Thanks to Outsourcing.
  6. 6. Sources: outsourcing.htm ---------------------------------------------------------------------------------------------------------------------------- "ICMI" DID IT FIRST, NOT THE BARBARIANS There are almost billions and billions of words you can read on the net regarding the topic "Telesales," let me add another 400 words that topic. Very short compared to other articles but surely an interesting one. What if call centers already existed during the stone age? The era when barbarian and uncivilized men ruled the world, the period when men and women used leaf as body coverings, and the time when homo sapiens lived like squirrels on the tree. Aside from their own language (if there's any), one way for them to communicate was through smoke signals; "Guten Morgen Senior, you can have a pair of mammoths tooth if you will give me an ivory" Another smoke signal appear writing this words in the air: "Give me the whole mammoth and in return, i will offer you the biggest elephant you had ever seen." Being serious, Annapolis in Maryland gave birth to Incoming Calls Management Institute (ICMI) because they realized that their call centers should be upgraded or developed. ICMI plays a big role on the evolution of the industry of call centers. Because of ICMI, the world experienced the first ever seminar on incoming call center management and the very first conference on call center bacame possible. ICMI didnt stop researching until they found, learned, practiced, and perfected performance improvement solutions that is now used by modern-day call centers. 1987, the year when ICMI made a mark in the blowing world of call centers. Founded on this year is the industry's first ever publication focused on call center management, the "Service Level Newsletter now known as the Call Center Management Review. The year was 1989 when the ICMI together one of their partners, Angus Telemanagement, Toronto witnessed the great great grandfather of the conferences on Incoming Call Center Management. Seven years after, Gunter Greff let the Germans see and experience ICMI seminars. Again, Angus Telemangement and ICMI joined forces to deliver the first seminar that is based on Internet-enabled call centers.
  7. 7. ICMI did not stop there, in partnership with the American Express they bring to existence the the complete two-day call center management seminar. It is the first of its kind. Delivering this seminar via live, interactive satelite, they got appreciations from different individuals in the industry of call centers. Aside from that, many other "firsts" in the history of call centers were made possible by ICMI. Now that you finished reading this article and learning the activities that marked the beginning of call centers... do you prefer to be a barbarian and use smoke signals? sources: ---------------------------------------------------------------------------------------------------------------------------- Orient's Pearl; A Hub for Outsourcing In our growing global economy, Human Resource Outsourcing and Business Process Outsourcing are parts of an emerging trend of outsourcing business functions. If you are not good on one thing, why not outsource it? In HR Outsourcing, there is a so-called "a la carte," which means you can pick for yourself the human resources you want. This gives the power to the customer on what kind of Human Resources they prefer. There is also a term called "all-or-nothing" which literally means letting them handle all of your company's HR functions, on the other hand, none at all. Customers can also choose from what country the human resources will come from. Philippines is known as one of the hubs of outsourcing through out the planet. "Offshore destination of choice by global companies looking for their backroom," the trademark given by the Gartner Group to the Pearl of the Orient, and according to the Philippine IT competitiveness review, the said country is one of the most promising, rising and important offshore player. India, China, and Malaysia should not be confident about their present status. Those countries are the 3 champions in outsourcing operations. Studies of BPO firm based in the US proved that BPO Philippines would give India tough competition in offshore outsourcing operations in the coming years. Avinash Vashita, the managing director of NeoIT mentioned in a seminar, "Scaling up BPO Operations" at Kolkata (Infocom 2003) that BPO Philippines (and BPO China) can provide high quality of outsourcing but with an affordably low cost. Let us compare those countries. Talking about the proficiency and fluency in english of both countries, Philippines is definitely better in English because for almost half a milenium, the U.S. colonized this said country making them familiar and comfortable speaking english languge. In addition, there is no doubt that
  8. 8. Filipinos can be considered as high-caliber IT professionals. Philippines produces more and more IT professionals (and computer science major) every year. Being a part of DDC Group of Companies (a privately held portfolio of companies) and being a leader in providing human capital BPO solutions, "DDC HRO" ( expects much to the Philippines compared to their other Asian neighbors because of the blowing numbers business opportunities for business process outsourcing (BPO) services in the Philippines. After reading this article, there is no reason for you not to outsource at the Orient's Pearl? Sources:`ZmoiovqkSSge!6C)bfekv ---------------------------------------------------------------------------------------------------------------------------- OUTSOURCING COMPETITION: INDIA VERSUS RP Some consider software outsourcing options for the reason of financial motives. But the benefits reach well further than the financials. A report according to 2004 Forrester states that, “offshore outsourcing remains an imperative in North American companies because of the cost and quality benefits it makes possible.” Outsourcing is often made to lesser costs or focus on competencies. A related term that means transferring work from one country to another, typically overseas is Offshoring. Offshoring is similar to outsourcing when companies employ subcontractors in a foreign country, but differs when companies shift work to the same company in another country. Outsourcing became a popular exhortation in business and management during 1990s Due to certain aspects such as cultural compatibility, proficiency in English, and neutral accents, Philippines is chosen as the base for their offshore customer service facilities by most foreign investors. In addition, racially, Filipinos are more westernized compared to their Asian neighbors. . . Being a former American Colony, there is no difference between the Philippine Mercantile Laws and the Commercial code of U.S. and has similar requirements for Certified Public Accountants as well. These are concrete evidences of cultural similarities between RP and U.S. In the recent years, the RP has become the offshore target of choice for call center outsourcing, specializing in customer support services. Filipinos take pleasures in watching American shows, for that reason, Filipinos are familiar with the nuances of American English. Customers usually think
  9. 9. that after dialing a 1-800 number, they are talking to a fellow American. Well, it is a big mistake. India is an IT giant in the third world and is ranked as one of the top choices of U.S. companies for software outsourcing. But the Philippines - having the world’s second-largest English-speaking populations—is fast catching up to India and probably taking the crown out of India in the near future. The most up-to-date “mantra” of India in the present day is the Business Process Outsourcing (BPO). Due to the fact that the current sources of revenue face slower growth today, software companies try new or fresh ways to have a larger amount of revenues. Outsourcers choose call center facilities that are capable of handling calls not just from English-speaking nations but from all over the world. Because of that reason, The India should not be confident with their status today. Source: ---------------------------------------------------------------------- The "Magnitude" of Outsourcing : A Rational View In the contemporary global bazaar, outsourcing is becoming increasingly popular as a way to increase output cheaply and competently. “Global sourcing is seen as necessary to be competitive or even survive…and small midsize companies are now involved” (Gartner, June 2004) Polls show that by a wide margin, Americans believe that outsourcing is not good for the economy. Is that truthful? No. Moving service jobs overseas, as is happening now, brings actual, concrete benefits to the economy, just as the country benefited when manufacturing jobs moved overseas. When jobs go to countries like India or China, those countries become wealthier and more developed, and in turn they demand more of our goods and services. The best way to understand outsourcing is to learn and comprehend its meaning. Contracting out or Outsourcing is defined as the entrustment of non-core operations or jobs from internal production within a business to an external entity (e.g. subcontractor) that specializes in that said operation. OUTSOURCED WORKS It is a must for each and every organization to generate data. Hidden in those data are pieces information on how the organization performs. Data analysis is the crucial process to bring
  10. 10. out information out of the otherwise random reservoir of data. Analysis results are very significant in any processes wether it is retail, pharmaceutical research or even banking operations. Varying amounts of data and bits of information in quantity and quality are generated depends upon the process. IT operation is one of the fresh faces in the outsourcing arena. It involves the management of IT assets of corporations from a specific location. It become possible when the management of a computer network of a large corporation includes outage monitoring, alarms monitoring, remote monitoring of data centers etc. OUTSOURCING BENEFITS The access to have skills and professional capabilities that you don’t have within your team will be possible with the help of outsourcing. Flexibility is one of the product of outsourcing. With the help of outsourcing, the owner or manager of an organization can easily gain more staff and / or add systems you do not have. On the other hand, when your business is shrinking, it's hard to keep non-core activities when you're having trouble selling. Not all businesses are aware of the benefits of outsourcing. It is a fact that outsourcing can save money, but that is not the most important reason to perform it. During the Outsourcing Mania of the early 1990s, it can be concluded that it is worse to outsource too much rather than not outsourcing at all. Flat economy is the reason why many companies into huge layoffs and subsequently outsourced functions that were better kept in-house. However, sensible outsourcing can offer a number of long-term benefits. Sources: ---------------------------------------------------------------------------------------------------------------------------- BY: ALEXIS HOJILLA Outsourcing: The Rise of an Economic Tonic As decades start to pave way for global transformation, today’s generation has witnessed countless technological advances and strategic economic approaches to suit the complexities of the modern world. Truly, man has proved himself ingenious in adapting to the difficulties he encounters in any field to which he engages himself with. And business is no exception.
  11. 11. In the past few years, outsourcing has become a well-known buzz word in the business industry. However, unless you are a business person or had some orientation in economics or business administration, you probably have no idea what this word is. Outsourcing is the handing over the tasks or jobs from internal production to an external unit. In recent times, it has preferred the employment of staff overseas where salaries are markedly lower. Nonetheless, buying services from a source provider can not be considered outsourcing. Outsourcing always constitutes a significant degree of interpersonal information exchange, organization and trust. Outsourcing traces its origin way back 1940’s, during the boom of the textile industry in the United States. Yet, its name got the attention of large-scale business industries when Ross Perot established the Electronic Data Systems in 1962. For years, designing, manufacturing and retailing firms paid for their management competence in information technology to aid in reaching their business objectives. Thus, outsourcing companies serve as a branching unit of these firms responsible for managing a segment of business. After over forty decades, outsourcing remains not only as a business stabilizer but also as an economic stimulant. Aside from aiding in performing business tasks, it also provides employment opportunities for countries with stiff job markets. At present, most international outsourcing firms principally comprises trade in services. International companies use outsourcing as a deliberate method which allows them to provide services to customers or other manufacturers in their home markets while using overseas staff whose labor is priced lower. As outsourcing becomes broader in scope, more and more benefits are brought about such as enhanced specialization and more extensive markets. These advantages are evident to both the developing countries providing labor services and the developed countries that purchased them. At present, outsourcing had escaped its stereotype purpose as an accounting support, which was the trend before. It has now invaded wider extents, such as data analysis, IT operations, engineering design, legal support services, art, animation and editorial work, and software development. Apparently, outsourcing brings clear and substantial benefits to the global economy. Beyond doubt, outsourcing has been a fundamental component of the global value chain schemes that have been made possible by technological advances and competitive markets. Hence, man’s conscientious efforts had once again succeeded in providing an economic tonic which could save many country’s dying economy--- outsourcing. Sources: • • • ------------------------------------------------------------------------------------------------------------------------
  12. 12. Hello, How Can I Help You? BY: ALEXIS HOJILLA Rings a bell? Probably because you have heard these words before while making inquiries or requests to different companies through a friendly call center agent. But do you know where the other line is coming from? Yes, you may speak the same language but if you think that means the person you are talking to is from your country, think again. In this era where microchips and robots have come to existence and people are becoming more and more oriented to the endless possibilities brought by technology, availing customer support services while talking to a foreign call center agent at the same time has become ordinary. Truly, many people had learned long ago that outsourcing, the method of handing a segment of business functions over a third party, was going to grow fast, due to its potential in putting the global economy back in good shape. Yet, most of these people had not realized it would do at such a rapid pace. With its speedy popularity, it had also its noticeable invasion in the business sector that it had succeeded in covering areas such as the call center industry. The term call center industry may be quite familiar to many but only a few knows what it is all about. Basically, call center industry is characterized by handling customer inquiries regarding a product, a service or the company itself. However, as labor cost rises, multinational companies prefer employing overseas staff to complete a certain business function. Thus, this phenomenon gives rise to offshore outsourcing. Offshore outsourcing represents an organizational practice that involves the transfer of an organizational function to a third party located in another country. Hence, a US-based customer who has found difficulties operating a new computer he purchased from a multinational firm can call a toll-free number to ask for help. What the American customer may not know is that the owner of the voice on the other line, talking with a confident "foreign" accent, is actually on the other side of the globe. Now, it has been cleared what call center industry really is. So the next time you talk to a customer service representative, think twice whether the person on the other line is from the same country or not. This article must have taught you a lot and as they say, thank you for calling---ooops, for reading, I mean. Sources: • • -------------------------------------------------------------------------------------------------------------------------- Philippines as a Haven for the Call Center Industry BY: ALEXIS HOJILLA The Philippines is often reckoned as a global hotspot in terms of agriculture, with sheer numbers of flora and fauna exported around different countries around the globe. However, as the Information Age continues to evolve rapidly, the Philippines undergoes a transformation from
  13. 13. being an agriculture-oriented country to a cyberPhilippines. It is at this point in history that the Philippines, aside from being a paradise blessed with exquisite landscapes, is building its own name in the call center industry. Among the growing markets of Asia, India and China have long utilized their labor forces in the call center industry, thus providing the fuel for their economic growth. Since India had been under the British colonial rule for decades, most of their citizens speak English, the so-called lingua franca of the modern world, making India seem such a perfect location for outsourcing. On the other hand, the Philippines had been struggling for the political, economic and social crises it faces. Yet, albeit the different criticisms it receives, many international firms recognize the Philippines, particularly its strong workforce of brown people with neutral American accent, as a potential haven for call center industry. A survey of multinational companies by a foreign consulting firm reveals that Philippines ranks as one of the most favorable locations for call center operations. In fact, out of forty countries regarded as propitious locations for offshoring, the Philippines ranked fourth, according to the Global Services Location Index 2005 of AT Kearney, following India, China and Malaysia. It jumped two places higher from its last year's ranking. Southeast Asia dominates the list of the 2005 index, with Malaysia, Singapore, Thailand, Indonesia and Philippines filling up the top 15 positions. Additional reports by the survey states that the Philippines awaits foreign investments for offshoring because of its English-proficient workforce, despite its political fluidity and infrastracture frailty. The language skills of its natives also provide endless opportunities for worldwide exposure. Meanwhile, a Canadian market research company stated that Philippines is capable of exceeding India in call center industry. XMG Inc. revealed that as early as 2008, the Philippines could overtake the current market leader if it will converge on brood over administering higher value services enforcing excellent English efficiency and frontline service support affairs. Cesar Toletino, an XMG analyst, said that if headed in the right path, the Philippines could earn $3.46 billion in 2008 in call center industry, surpassing India's estimated income in the same year of $2.87 billion. With such definite and abundant advantages of Philippines over other countries, the Philippines truly faces a bright future in call center industry. It is no exaggeration to assert that in a matter of years, call center industry in the Philippines will be at its zenith in international influence and prestige. Sources: 1. ACCT=104&STORY=/www/story/11-22-2005/0004221322&EDATE= 2. ---------------------------------------------------------------------------------------------------------------------------
  14. 14. Industrial Revolution in the Philippines BY: ALEXIS HOJILLA Some two to three centuries ago, huge social and economic advances marked the worldwide evolution from a conservative agricultural and commercial worldwide society to an experimental industrial civilization. Manufacture of new mechanical innovations to ease the tasks of mankind had replaced manual labor and conventional tools our ancestors had used long ago. Perhaps you recall from history books how in just a few decades of this period, the global village competently accepted the countless innovations made like the electricity, automobiles and telephones. However, this phenomenal spread of knowledge called Industrial Revolution had not made a rapid progress in the global market. But in 1830, it eventually developed gradually and quickly reached every corner of the globe. Along with its worldwide expansion, it underwent a huge regional expansion. Every area in the world enhanced their specialized fields in the industry. The global economic power and technological superiority entailed by the Industrial Revolution had eventually reached the Philippines. Located in the heart of the Orient, it took time for technological innovations to penetrate the Philippines. Until the 21st century, Philippines gradually developed at a remarkably slow pace. Nonetheless, the 21st century marked the paramount of Philippines' own "Industrial Revolution", as multinational companies become more and more interested to invest in the Philippines in the field of offshore outsourcing, particularly in the call center industry. Philippines' workforce has long been known worldwide for the efficiency it presents. Thousands of overseas Filipino workers are hired every year. This proves how foreigners feel satisfied at the service of Philippine natives. In fact, a study has been conducted by the Swiss International Institute for Management Development in 2004 which reveals that Philippines ranks number one in Asia in terms of availability of skilled workforce. Aside from being naturally smart and respectful, Filipino workers are also efficient in speaking English. Also, labor in the Philippines is priced markedly low, compared to equally qualified employees from other countries. These are the main reasons why the Philippines seems to be a potential location for call centers. Most call centers are used by international companies for interacting with their customers. Such interactions may involve customer support for computer software and hardware and mail order catalogue firms. Other companies are using call centers for their internal functions such as help desks and internal support. Such tasks suit the positive disposition and patience of Asian natives. Among the growing markets in the call center industry, India and the Philippines are the two strongest industries in call centers. Judging by its present role of expansion, call centers provide substantial benefits to the Philippines. Likewise, those multinational firms continues to discover manifold advantages of putting call centers in the Philippines. Once confined to agriculture, the Philippines is now undergoing an Industrial Revolution, a significant transition from being an illiberal society to a home of an industry continuously developing through the years---the call center industry.
  15. 15. Sources: 1. 2. --------------------------------------------------------------------------------------------------------------------------- The Rise of Outbound Call Centers in the 21st Century BY: ALEXIS HOJILLA As the technology swims in a state of flux through generations, so is the necessity of mankind for ready access to substantial and authoritative information. The invention of computers and other cybernetic machines paved way for the rise of the Internet, which allowed us to instantly gather information with just a few clicks. The remarkable expansion of the computers and the Internet in the 21st century conquered different fields--- in biochemistry, in nuclear physics, in psychology and in dozens of other fields. Internet made what appears impossible, possible. Computers had successfully accomplished the discovery of grand new areas in medicine, the exploration of outer space by manned flight, the innovations in the field of robotics and countless other advancements. Moreover, computers also provide assistance in many aspects of our daily life, including purchasing products. Truly, computers have made it possible for companies to market their products without the hassle of actual negotiations. However, as time goes by, most customers prefer talking to someone to make sure every information about the product is clear and every question he has in mind is instantly answered. This gives rise to telemarketing. Perhaps you have experienced receiving a call from a stranger with perfect accent and formal language offering a product at a reasonable price and explaining the benefits the product may cause you. That scenario is what telemarketing exactly is. It increases and stabilizes customer awareness about products which may be of great necessity to the customers. Telemarketing is only one of the two major services offered by outbound call centers. Many companies are taking this strategic method in business to increase the sales and popularity of the products. Basically, outbound call center is a unit that uses high technology telecommunications system. It serves as an outsourced provider facility that manages services for outgoing phone calls and other technological means of communications such as e-mail, VoIP and live internet chat. Telemarketing outbound call centers make use of sophisticated communications technology such as PBX, IP and ASR. Aside from telemarketing services, another major service offered by outbound call centers is market research. Since marketing firms only have limited time to survey, most firms pass on this task to a third party which is an expert on market research. The main function of market reasearch is to know more about what the customers want and how they evaluate certain products.
  16. 16. The present rate of outbound telemarketing expansion in the global market has increased over the years. Evidently, it is likely to continue its vigorous growth in the next years to come. At this generation where competition is stiff and consumer demands are high, telemarketing and market research through outbound call centers would remain in promoting public awareness about what they need and what they want. Sources: 1. 2. --------------------------------------------------------------------------------------------------------------------------- Call Center Industry as Catalyst for Employment BY: ALEXIS HOJILLA About a decade ago, the International Labor Organization predicted that world unemployment would continue to rise for years. During that time, about 1 billion people, or 30 percent of the global workforce, are either underemployed or unemployed. The ILO report also stated that most of them could never find a job which would suit their skills over the years. However, while offshoring continues to dominate the business sector in haste in the present, many economic analysts conceive a little spark of hope that would oppose to what the ILO reported a decade ago. With a high employment demand in call centers, the outsourcing industry, principally the call center market, could serve as the remedy for the worldwide problem of unemployment. By 2015, the industry is estimated to increase to 3.4 million US service jobs overseas. Fortunately, these high employment demand reaches third world countries with high unemployment rates. India and Philippines, for example, which have 8.8% and 10.2% unemployment rates respectively, are the two competing countries in terms of call center performance, where low cost employees are performing a variety of American tasks. These tasks range from chasing debtors to calling prospective customers to offer them new products and services. With English proficiency, good listening and problem-solving skills as requirements, many natives of third world countries are easily employed. However, as time passes by and competition for jobs becomes more stiff, the demand for those with higher qualifications arise. Many call center firms demand for expertise in information technology for some of its positions. Still, for countries with high technological skills like the Philippines, such high prerequisites do not hamper them from getting employed. Siemens Inc., for example, added in their requirements for call center agents the familiarity of IT terms and concepts which are of great need since they are about to offer IT support to customers worldwide. With these strict requirements, Siemens concluded that the Philippines tops all other countries when it comes to customer service orientation, ability to adapt to a western cultural framework and English communications.
  17. 17. For 2005, the call center industry created 103 000 jobs in the Philippines alone. Thus, this industry is considered by many analysts as the "sunshine sector" of the global economy and upholds great potential as the catalyst for employment. Beyond doubt, this so-called "sunshine sector" enhances not only the productivity of the multinational companies but also provides income for many who used to be unemployed. Contrary to what critics say, call center jobs are capable of offering long-term employment where employees can take root and grow. Hence, this budding industry is likely to give a permanent and dependable basis for long-term innovations in the economy, particularly in employment. Sources: 1. 2. 3. --------------------------------------------------------------------------------------------------------------------------- Philippines in BPO Global Leadership: Why Not? BY: ALEXIS HOJILLA Who would ever thought that such a country which boasts of its wonderful natural resources would become a global leader in the current business trend today? Yes, it is true. Despite of its economic instability, the Philippines has opened its market for business process outsourcing and is now regarded as one of the two global leaders in this industry, alongside India. In outsourcing industry, it joins four other Southeast Asian countries in the top 15, according to the Global Location Services Index of 2005. But what is business process outsourcing anyway? Business process outsourcing, known as BPO, was regarded as one of the fastest growing industries in the world. It is the ascendancy of technology or expert process providers to supply and regulate a segment of business processes and functions. It means that part of business tasks of the outsourcer is transferred to a third party. BPOs exist in different forms such as accounting and payroll outsourcing, medical transcription industry, call centers, animation and human resources. In 2002, the BPO industry employed about 2400 Filipinos, bringing in revenues of US$24 million. Just three years after, the industry grew rapidly and its revenues increased to US$1.12 billion, providing jobs for about 112 000 employees. At present, the Philippines is regarded as the most competitive adversary of India in the global call center market. A Michigan-based company, Kelly Services, Inc. stated that US companies now prefer Philippines than India in offshore backroom operations. This is largely because aside from being a former US colony, the Philippines and the American education system are so much alike which includes comprehensive English language studies, giving Filipinos a neutral American accent. On the other hand, India currently faces criticisms due to their British accent, a barrier in dealing with American customers.
  18. 18. Likewise, in other BPO industries, the country still excels. This is mainly because of Filipinos' proficiency in English and Spanish. Also, among all Asian countries, the Philippines has the greatest number of accredited accountants which are acclaimed for their adaptability in multiple accounting standards. Many studies showed that Philippines have great potential in global leadership when it comes to BPO. The neoIT's 2005 Mapping Offshore Markets Update ranked Philippines as the third in the world for top BPO destinations. In 2004, the country was cited by the Philippines' Center for International Trade Expositions and Missions as among the 10 global leaders in offshore operations. AOL, Chevron, Dell, HP, IBM, Intel and Motorola are among the multinational companies that already operate offshore operations in the Philippines. These substantial developments in the BPO industry prove that the country has not made a mistake in opening their market for global outsourcing. As the Philippines exhibits a world-class, powerful workforce, this "established success story", as stated by the Kearney 2004 Attractiveness Index , is likely to continue in years to come. Sources: 1. 2. 3. --------------------------------------------------------------------------------------------------------------------------- Can Philippines Defeat Other BPO Global Leaders? BY: ALEXIS HOJILLA This is the question lingering in the minds of many business professionals, especially those engaged in the latest global business prevalence. In the 2005 neoIT's Mapping Offshore Markets Update, Philippines exchange places with other countries which had long before engaged in the business process outsourcing industry. Philippines is included as one of the BPO destinations with the largest industry size in outsourcing in 2004, along with Canada, China, India, Mexico and European countries such as Poland and Ireland. The countries were selected based on the present and future potential sizes of their offshore industry. In the Offshore Attractiveness Index focusing on BPO, the Philippines ranked second, following India. Completing the top ten are Poland, Ireland, Canada, Mexico, Czech Republic, Malaysia, China and Hungary, respectively. In the BPO Evolution of Offshore Markets providing a perceptible manifestation of the current and the predicted future attractiveness, the country retains its position as the second. The study asserted the the BPO market growth in the country has something to do with its colonial past and strong cultural ties with the US. These result to the country's high rate of proficiency in the English language, thereby becoming more productive service providers.
  19. 19. On the other hand, though India constitutes a huge skilled labor pool, superior service maturity, strong governmental support and cost competitiveness, it faces future threats resulting from its poor infrastructure and bureaucracy. Canada and European countries encounter problems of high wage rates despite the excellent business environment they have. While China boasts of its cost-competitiveness and large labor pool, it receives criticisms of low service maturity, difficulty in English language and negative perception of geopolitical risk. Meanwhile, Malaysia is also threatened by problems like the unpopularity of BPO jobs. Mexico is another country growing as a strong competitor but some companioes hesitate to consider it since its workforce specializes only in low-end jobs. Though Russia emerges as another rival, its poor infrastructure and linguistic capabilities in languages like English and Spanish hamper the BPO industry. Philippines, however, also affronts barriers like the unfavorable geopolitical situation. However, the country is currently undergoing political changes to resolve this issue and developments are presently evident. Still, Philippines takes pride in its good telecom infrastructure, cost competitiveness and excellent English language proficiency. Also, another advantage of the Philippines over all the other competitors is its familiarity with American cultural framework and Spanish language. At present, India still excels most in the BPO market, but as criticisms arise, it is about to lose its position. What exists today may not be true in the future. Having the second position in the global BPO market, the Philippines has more to offer. Perhaps the answer to the question above is crystal clear. Can Philippines defeat other BPO global leaders? The answer is probably. As they say, the best has yet to come. Sources: 1. 2. %27s+2005+Mapping+Offshore+Markets+Update& 0905_Mapping-Offshore-Markets.pdf&w=neoit %27s+2005+mapping+offshore+markets+update&d=VGWXERbfMSWl&icp=1&.intl=us -------------------------------------------------------------------------------------------------------------------------- Why Outsource? BY: ALEXIS HOJILLA In this fast-paced era of technology and globalization, more and more complexities are encountered by the business sector of the global society. Demands continue to increase and competition becomes more of a rat race. Business tasks are getting complicated and intensified as technological advances require companies to handle multiple responsibilities. However, they found an essential way of dealing with the convolutions brought by modernization. For years, lots of companies of varied fields have accepted the concept of outsourcing. Fundamentally, outsourcing is a strategic method of handling responsibilities
  20. 20. without completely depending on the original company's resources. It all started in the 1940's when American textile firm owners decided to use a third party to manage a part of their business functions. Later in the 60's, a company offered service to furniture manufacturers and designers using their expertise in information technology. Years after, outsourcing has branched into different varieties performing aggregate functions. These include engineering design, data analysis, software development, call centers, information technology operations and animation. As outsourcing becomes more and more popular in business and management, it has showcased manifold benefits to both the outsourcer and the service provider. The mere fact that multinational companies that rely on outsourcing increase conveys that outsourcing has proven its success. Microsoft and Oracle, for instance, have aggravated outsourcing and utilized the savings for investment and domestic payrolls. Aside from developing product quality, outsourcing costs lower substantially. This is evident specially if a company outsources from an overseas firm where labor costs are more economical than the labor costs in their home markets. Since outsourcing allows for cost-competitiveness, productivity is increased. In effect, the global economy in aggregate benefits. Moreover, advantages are perceived not only in outsourcer markets but in outsourced countries as well. Though labor costs in these countries are rationally lower than in developed countries, outsourcing jobs are considered high paying and worthwhile, with respect to their cost of living. Hence, outsourcing fuels outsourced countries toward economic growth. Also, advantages on the political aspect are seen out of outsourcing. According to Thomas Friendman, countries that are focused in their economic growth are much less likely to tolerate war. It is impossible for these countries to go to war with nations that contribute to their economies. Likewise, outsourcing focuses companies on their major business goals, since the difficult segments if their business functions are handled by a third party. Outsourcer companies also get to share risks with the outsourced firms. Furthermore, outsourcing helps promote globalization because it enable companies to gain access to world-class capabilities. By the virtue of the countless opportunities and advantages outsourcing boasts of, it is no surprise that it is recognized as one of the fastest growing industries in the world, particularly business process outsourcing. No one knows what more benefits it may present in the future. Almost every company who considered outsourcing asked the question "why outsource?". Yet, in the end, they all found the answer. Simply put, the answer lies in the question itself. Why outsource? Why not. Sources: 1. 2. 3. ---------------------------------------------------------------------------------------------------------------------------
  21. 21. What Philippines Has to Offer in Outsourcing BY: ALEXIS HOJILLA Among all the cities in the world, Manila was cited as the best city for outsourcing by the Global Offshoring Index 2004 of a property consultancy company. Jones Lang Lasalle asserted that this is due to the country's well-educated, English-speaking and IT-skilled workforce. Following Manila are cities from Brazil, Argentina and Mexico. As a small third-world country, many business professionals become sceptic on how Philippines has attained this position. Yet, its numerous assets speaks for itself. Once constrained to agriculture and overseas domestic labor, the Philippines has become a favorite destinations for multinational companies in offshore outsourcing. Aside from the high level of literacy and English language proficiency, the country also boasts of an intellectual, c ustomer-service-oriented labor pool and low-cost labor. Specializing in call centers, business process outsourcing, application development and animation, the Philippines takes pride in its cultural compatibility with the United States. Being a former colony of Spain and the United States, Philippines has turned out as a culturally open society, an advantage over its rivals in the outsourcing market. The democracy it possesses makes it possible for the people's openness to influences from different cultures. Hence, it produces a workforce capable of adapting easily to foreign customs. Since most Filipinos are bilingual, Philippines is conspicuously at the paramount of telecommunications offshoring market. On the other hand, the critics' aspersion on the potential of Philippines in outsourcing includes migration of workers to different countries and the country's low awareness as an offshore top market. However, since the country produces a huge amount of graduates every year, migration of a small percentage of its labor force is not a big deal. In fact, the country has more students in their tertiary education than most of the nations in Europe. Producing 15 000 graduates from technical universities, the country has a high literacy rate of above 94%, with English as the principal medium of instruction. 99% of the college graduates have a competent adeptness in English language. This is primarily the reason why Philippines overtakes many countries in fields like customer support operations. In its intent for economic growth, the Philippines has opened its market for foreign investments, specially in offshore outsourcing. The government encourages multinational companies to develop the emerging industry in the business trend today. In fact, it offers attractive incentives to foreign investors. Local business industries cooperate with the government in developing the country's infrastructure. For the past few years, the country's economy has relied in foreign investments as a huge contributing factor for its economic growth. As more and more outsourcers decide to select Philippines, the country is expected by many business analysts to take the prime global leadership in outsourcing. With its skilled, skilled workforce and convenient environment, the Philippines represents a paradise for outsourcers
  22. 22. around the globe. Thus, what Philippines has to offer should not be a question of doubt and debate, but an inquest full of anticipations of more benefits the country has to exhibit. Sources: 1. 2. By Roy Jonathan del Rosario Outsourcing in the Philippines: Is your privacy protected? By Roy Jonathan del Rosario Does Philippines have laws which guard the confidentiality of private information that is held regarding a person in the course of private conversations on the phone or on-line for business or any legal purposes for instance, in the outsourcing industry? Most businessmen are being anxious whether or not to avail call center services or more specifically customer care services because at stake is the confidentiality of their business documents or whatever it is that needs privacy. It is their lack of knowledge that there are certain laws in the Philippine Constitution that protect their rights for privacy which hinders
  23. 23. them from making their other business processes done by more skilled specialists outside their company, which might make it more efficiently done and added the advantage of cutting the high-priced expenditures of the company when the business processes were done in-house. Among these laws that can give confidentiality and safeguard of data to the businessmen include the Republic Act No. 8792 which is also known as the Electronic Commerce Act of 2000. In this law, it lawfully recognizes electronic credentials and transactions, and defines what is legal for commercial and non-commercial purposes. The law states that: 1. Only persons with the lawful right to the data should have the access to it (Section31-Lawful Access); 2. People with the lawful right to the data should keep it confidential (Section32-Obligation of Confidentiality); and 3. Illegal access to the data is punishable by law (Section 33-Penalties). Another law that is stated is the Presidential Decree No. 1718 which puts restrictions on the transfer of documents and information outside the
  24. 24. Philippines. On the other hand, the Philippine Constitution and Civil Law states that the privacy, including the privacy of data, is a constitutional right and is recognized in the Philippine Civil Law. Since bank documents are extremely confidential, there is the law which is the Bank Secrecy Act of 1995 which sets out the rules for keeping bank records confidential. And since communicating over the phone or on any forms of technology can be recorded, the Republic Act No. 4200 also known as the Anti-Wire Tapping Act, states that it is illegal to intercept or record private communications. Another important law which is known as the Access Devices Regulation Act of 1998 states the prohibition of the utilization of unauthorized ‘access devices’ which includes account numbers, credit cards and electronic serial numbers. Source: That is Why They are Offshoring . . . By Roy Jonathan del Rosario Once again, the call center industry is being
  25. 25. criticized as a tool for exploiting Filipinos, offering them extremely much drop down wages compared to their counterparts in the US call center industry. A local broadsheet reported that a local labor group is attacking the call center industry for providing lower wages to Filipino workers than their counter part agents in the United States. In a report from the Philippine Daily Inquirer, KMU spokesperson Prestoline Suyat noted that entry-level workers have an average salary of 15,000 Philippine pesos while their counterparts in the United States earn as much as 40,000 Philippine pesos per month when converted to Philippine pesos. Moreover, the Filipino call center agents’ salary as well fall short of 19,950 pesos monthly living cost. That is the logic! It is because it is cheaper to outsource offshore because they can benefit from the lower salary costs of Filipino contact center agents than in their own original destination. If we would demand for equal salary as that of our counterparts in the United States, do you think
  26. 26. those huge companies would still be interested to invest here? Considering that they would just spend the same expenditure as much as what they spend in their country or even spend much more because of the destination leasing and the advancement of the infrastructure if ever we demand for it. For starters, there is an average of 15,000 Philippine pesos a month for contact center agents, and isn’t it a good start compared to other jobs being offered in the Philippines? In fact, when you say you are working as a call center agent, you probably are being envied by your mates who were working in other companies that offer not even half of your salary in the call center industry. Yeah it’s true that we should know our worth as well-educated country with a literacy rate of 94 percent. But do you think, in reality that our country’s economy is much deteriorating, compared to other third world countries, isn’t it a very good opportunity to grab it now instead of thinking that it is a tool for exploitation of
  27. 27. our workers? Imagine how big help it has been on the Philippine economy, and how it brought a lot of revenues as much as billion pesos, isn’t it enough to be called a great alternative job? The Philippine call centers’ rage nowadays is a strong alternative now, that should be taken with well-handled care. Source: Outsourcing in the Philippines: Is your privacy protected? by Roy Jonathan del Rosario Does Philippines have laws which guard the confidentiality of private information that is held regarding a person in the course of private conversations on the phone or on-line for business or any legal purposes for instance, in the outsourcing industry? Most businessmen are being anxious whether or not to avail call center services or more specifically customer care services because at stake is the confidentiality of their business
  28. 28. documents or whatever it is that needs privacy. It is their lack of knowledge that there are certain laws in the Philippine Constitution that protect their rights for privacy which hinders them from making their other business processes done by more skilled specialists outside their company, which might make it more efficiently done and added the advantage of cutting the high-priced expenditures of the company when the business processes were done in-house. Among these laws that can give confidentiality and safeguard of data to the businessmen include the Republic Act No. 8792 which is also known as the Electronic Commerce Act of 2000. In this law, it lawfully recognizes electronic credentials and transactions, and defines what is legal for commercial and non-commercial purposes. The law states that: 1. Only persons with the lawful right to the data should have the access to it (Section31-Lawful Access); 2. People with the lawful right to the data should keep it confidential (Section32-Obligation of Confidentiality); and 3. Illegal access to the
  29. 29. data is punishable by law (Section 33-Penalties). Another law that is stated is the Presidential Decree No. 1718 which puts restrictions on the transfer of documents and information outside the Philippines. On the other hand, the Philippine Constitution and Civil Law states that the privacy, including the privacy of data, is a constitutional right and is recognized in the Philippine Civil Law. Since bank documents are extremely confidential, there is the law which is the Bank Secrecy Act of 1995 which sets out the rules for keeping bank records confidential. And since communicating over the phone or on any forms of technology can be recorded, the Republic Act No. 4200 also known as the Anti-Wire Tapping Act, states that it is illegal to intercept or record private communications. Another important law which is known as the Access Devices Regulation Act of 1998 states the prohibition of the utilization of unauthorized ‘access devices’ which includes account numbers, credit cards and electronic serial numbers.
  30. 30. Source: Outsourcing 101 by Roy Jonathan del Rosario For quite a long time now, ‘OUTSOURCING’ has become a buzzword in both the international and local economy because of its business application in both the corporations and for the small businesses and because of its political applications as well. And here are some of the new words you might encounter that may hinder you from comprehending with matters concerning outsourcing when you encounter these if ever. In addition, here is also included some details regarding outsourcing including its roots, its current relation with the politics. First, let’s define ‘Outsourcing’… Outsourcing is the act of obtaining services from an external firm. It is a service commonly offered by outsourcing companies which has expertise in certain fields such as telemarketing, accounting and business process outsourcing. It is beneficial for companies who seek to break down or lessen their expenses and
  31. 31. to use their resources to focus on the field of their expertise. Now, let’s trace how outsourcing began… The concept of outsourcing was popularized by Ross Perot when they founded Electronic Data System (EDS) back in 1962. . EDS would say to a potential client, "You are good at designing and manufacturing widgets, but we are skilled with managing information technology. We will sell you the IT services that you require, and you can pay us periodically with a minimum commitment of two years.” Today, EDS is a multi-billion dollar company with over 70,000 employees and is only one of many global BPO firms. Offshore outsourcing… Offshore outsourcing, or “offshoring”, refers to outsourcing to firms in foreign countries, often to take advantage of labor arbitrage. In the past 10 years, business process outsourcing contracts have increasingly been given to firms in developing countries. Typically educated workers in developing countries, such as India or China, work for a much lower wage than do similarly
  32. 32. educated workers in developed countries, such as Japan. Savings from the lower wage rate must exceed the increased costs of management and risk associated with offshore outsourcing for it to be economically viable. Offshoring and the Politics… Offshore outsourcing has recently become a hotly-debated issue in the national media. When the American economy began to pull out of recession in 2001, unemployment did not decrease as expected. Offshore outsourcing was blamed as a contributing factor to this “jobless recovery”. Information Technology was a particularly soft sector, and many American programmers lost their jobs to lower-paid foreign counterparts. Many economists however have recently conjectured that the higher-than-expected unemployment numbers were not the result of offshore outsourcing, and that offshore outsourcing has actually had a positive impact on the American economy. Undoubtedly the debate will continue into the presidential campaign. Source:
  33. 33. by the Outsourcing Times Philippine Outsourcing: Half-empty, Half-full? by Roy Jonathan del Rosario Even the most successful business ever turned its spotlight brighter than it used to be still has a thing or two to improve. The Philippine call center boom has been tagged as one of Philippines’ key to economic growth, and it has been proven by the apparent generation of 100,000 jobs in the call center industry today. Known to be the most proficient in the English language in Asia, having the closest affinity with the western culture, having workers with perseverance toward work and having the ability to deal with different nationalities in a convincing way, and being on the verge of being the best among all the offshore destinations in the world, do you believe that the Philippines, still, has a lot to build up and improve when it comes to all areas of the outsourcing industry? Offshoring has been a big part of Philippines’
  34. 34. business industry. In the past years, Philippines has generated $1.7 billion worth of offshore services to the Philippine economy as well as to the world economy. Low employment cost is the primary factor why Philippines became one of the offshore destinations here in Asia. According to surveys conducted by different researchers, Philippines has the second-lowest hourly salary for offshoring companies which is only 13 percent of the wages being given in the United States, while India ranked with the lowest salary with 12 percent. Despite the small population of 88 million of the Philippines, it has comparatively a bigger number of bands of workers suitable for transnational companies that the population would suggest. In the statistics rendered by the researchers, for every 100 fresh college graduates with economics and finance degrees from the offshore destinations, executives of the transnational companies said they would hire 30 in the Philippines versus with just 15 from India; the equivalent statistics from other
  35. 35. researchers, correspondingly, were 25 of the Philippines over just 10 of India and 20 over 15 on the other researches. The Philippines as well compares satisfactorily on the suitability of its graduates of engineering for employment with the multinationals – a precise strength for India. However, a bigger percentage of the Philippines population has earned a degree in college than of India’s. However, Philippiner crashes behind other competent offshore destinations on five other criteria that transnational companies look for when choosing an offshore site. And an all the countries that has been surveyed, the Philippines landed as the nation with the weakest risk profile which includes threats in security, unpredictable natural calamities and stealing of data plus the very few number of third-party salesmen. In addition, the Philippines only allure just a fraction of the interests India generates as a competent domestic market for services. The Philippines not very balanced business surroundings experience and suffer meticulous
  36. 36. labor laws, continuous corruption of national budget by sinister in the government, and a surfeit system of government. It takes as much as double the time in Malaysia and India consumed in obtaining an approval to open a contact center in the Philippines. Another disadvantage is a scarcity of direct flights from the Philippines to the far markets like the United States. Another drawback is the scarcity of management talent in the Philippines partially due to the fact that the Philippines is still in the early level of enhancing and developing the industry and potential managers are still on the process of being trained constantly. Moreover, it is apparent that the Philippine economy is mostly owned and managed by either small or medium-sized companies that are often owned by well-known families and don’t produce that much talent in management. Actually, the Philippines has a huge number of diaspora that could be competent managers, but these emigrants tend to take nonmanagerial jobs like contract workers or nurses abroad, so they go back home without
  37. 37. suitable experience. Although transnational companies see Philippines as an ideal offshore destination, it will still depend on the way they weigh and consider the Philippines’ risk against its other advantages. Indeed, Philippines though tagged as an eye-catching destination for offshore outsourcing, still has a lot to improve and enhance to be more competent in the field of outsourcing not just with how well the agents speak, deal with the clients and persuade but also by means of advanced infrastructure, well-established labor law and peace stability that will make the foreign companies comfortable to build an offshore destination here. Source: Call Center Services by Roy Jonathan del Rosario Call Centers have various functions depending on the kind of company you are in to. The two kinds of this are Inbound call center or Outbound call center. Call centers makes (outbound) or receives (inbound) large number of calls on
  38. 38. a company’s behalf. Apparently, this service can be a cost-effective alternative to building an in-house telemarketing organization. Outbound call centers are contact centers that make the calls to the phone users mainly to sell products. It is a common tool utilized by companies to create telemarketing calls. It makes customers well informed about a certain product that can be availed. It makes advertising more effective due to the presence of live interaction with the agent and the target customer. It will be more understandable for customers if they can ask queries over the phone than just seeing an advertisement. It is an effective tool for persuading potential clients to realize that a product is worth availing. Outbound call centers can also be called telemarketing because it is a form of advertising a product or services in a more different way than we usually see advertisements because it uses live interaction over the phone between the agent and the potential customer. This is usually a very complicated conversation from the very start since people don’t usually want to be called at home just to be offered with products because they think it would just be a waste of time listening to the agent discuss what the call is all about. That is why agents should be long-tempered and has the ability to deal with different kinds of people. On the other hand, Inbound call centers are contact centers that receive calls from clients mainly. Chiefly, these phone calls are made by customers who usually deal with dilemma or queries that he or she is facing at the moment about a product or services that he or she have just availed. As all
  39. 39. contact centers agents should expect, sometimes clients tend to be hot-tempered maybe because of the inefficient product availed or an ineffective service been rendered. Inbound call centers are also considered as customer care service since it deals with the problems involving the customers on the other line of the phone. It may also be complicated to have a well-organized conversation with the customers since many customers who call in customer service centers are person who complains about a certain product they bought or sometimes about an inefficient service that made them ill tempered. Mostly, these calls made and received are recorded by the company for evaluation purposes to ensure the efficiency of workers and to maintain high standards. Source: Filipino call center agents' edge: Attitude...a small word that makes a big difference by Roy Jonathan del Rosario Filipinos are more devoted in satisfying customers - this was a statement made by Jon Kaplan, who is an American information technology specialist who also stressed that Philippines is a big option for an outsourcing destination of transnational companies engaged in the contact center business. Philippines has once again been tagged as one of the favorite offshore destinations of foreign investors in the outsourcing business because of the
  40. 40. workers' positive working habits which include being hard working and hospitable. it was an edge over other asian countries notably India. Though India is said to have the lowest among all asian nations in terms of employment cost, the Philippines is stil being chosen because of the fact that Filipinos are better in satisfying customer needs aside from having the highest English proficiency rate in Asia and needless to say, having a close affinity with the western language. According to some experts, it is really not just the cost that matters but also communication expertise and attitude towards work of the agents as well. In the States, call center agents there treat their job as more than it while here in the Philippines, it is treated with more time annd effort. With this, it is predicted that the call center industry will generatte as much as 75 to 100 percent growth every year which would outdo India's 50 percent inflation every year. However, The Philippine call center industry still have to be close acquainted with the American laws regulating the function af contact centers to be able to constantly practice quality in serving the customers and observe high standards and to advance programs guide the agents efficiently on career paths to boost the growth of the company. With these, more jobseekers especially college graduates will be benefitted by this inflation for the necessity for more contact center agents in the Philippines. It was cited by president Gloria Macapagal Arroyo that the extraordinary growth of the industry of the contact center and also the
  41. 41. business process outsourcing is a huge factor in achieving the goal of the government to provide thousands or millions of jobs to throng of unemployed Filipinos. Though, the president cited as well that these prospective job seeekers in the call center industry must strongly possess such abilities and attitude a call center agent must have including: the capability to speak the English language very well and the ability to communicate or deal with different kinds of people especially foreigners considering transnational culture while in the business process outsourcing must be efficient in accounting and short-hand for transcription purposes. In the past, there were only about 2,000 workers in the call center and business process outsourcing. But with the advancements made from the infrastructure, the call center and business process outsourcing grew to an escalating 50,000 agents and being doubled every year. The president also noted that there is a powerful confidence of transnational investors in the local business climate because her administration has strong pact with the other nations particularly the United States. With this, it is evident that hardwork and admirable attitude is a key to opening the gate for success and Filipinos do possess good working ATTITUDE- a small word, that makes a big difference. Source: Call Centers Prefer Women as Agents?Why?
  42. 42. by Roy Jonathan del Rosario Does this signal women empowerment or gender versatility in the modern day business? Men are known to be the dominant ones when it comes to the working industry especially when it comes to working over night.But recent statistics show that 95 percent of workers or employees in particular companies are women. Yes, women who happens to be the ones doing most of the household chores. It is practically a way of showing gender versatility that men are not the only ones who can do the opposite responsibility but women as well are capable of doing heavy tasks like sitting while talking over night over the phone dealing with different kinds of people for sales purposes or for help or assistance services. As well, women dominated over men when it comes to the top manager level, 6 to 4. A certain company's job market advertisement for customer servive representatives caught the attention of a number of applicants everyday. The advertisement's seems so simple: Female, 20-35 years old, graduate of any four-year course, proficient in English and a good communicator with a promising broadcast voice, literate in computer and has positive attitude. It also announces that the training which is for one month has allowances and six months of paid probationary employment prior to hiring. According to the customer care director of the company, the company responds to all kinds of customer questions that would eventually clinch the sale of products that are being marketed by the company's customers.
  43. 43. Because of the strong demands for the job, Filipinos, and particularly Filipino women, have made a career in the contact center industry, especially in offshore outsourcing. In the United States, the call center industry is somewhat morbid. It is a career that is only done by people on summer because they do not want to engage themselves with with many kinds of attitudes and troubles. But naturally, Filipinos are affectionate and easy to deal with and that is three-fourths of the combat in the United States. You do not have to tell a Filipino call center representative because they cant keep hanging up on a customer because they never do that. Women are preferred more over men in the customer service representative task in almost all the call centers in the Philippines. Scientifically proven, women are generally possessing a high tolerance to stress and a soothing quality of voice although married women show more seriousness at work than single women. Is the Luster of Outsourcing Already Rusting? by Roy Jonathan del Rosario We have witnessed its luster and its continuous gleam over years, but is it really rusting now? Offshore outsourcing has been prevailing in the business world for years. It has also been one of the best contributors of great economic revenues for the deteriorating Philippine economy. And as
  44. 44. predicted by a number of economists, it will continue and will grow further on the next years to come. But this is not a sure thing as circumstances can be changed by fate. And now here we go. As the number of benefits it brings to the business industry grew day by day, so as its negative outcomes which somewhat hinder the industry for continuously growing. But according to an informal website survey conducted by Computer Economics, these negative impacts of outsourcing are not having any negative effects in the use of outsourcing by business. In the survey’s results, 33 percent of the respondents are already outsourcing offshore and intend to do more in the coming years. On the other hand, 50 percent of the respondents have no plans yet of doing it at this time. Moreover, 11 percent of them are not doing so but are preparing and planning to in the future, while the remaining 6 percent of the respondents are planning to do less outsourcing. As the sponsoring website indicates, business will follow further offshore
  45. 45. outsourcing in the future. On the other hand, the outsourcing opponents should look at the 2005 Deloitte study, “ Calling a Change in the Outsourcing Market”, which discloses that a number of enterprises are taking a closer look at outsourcing after experiencing less than stellar outcomes. As the study shows, 70 percent of the respondents surveyed testified off-putting experiences with outsourcing projects; 25 percent say they brought outsourced functions back in-house, while 44 percent did not get the expected costs savings from their outsourcing projects. Why does this happen? While 70 percent of the respondents who have been surveyed said cost savings as a propeller for grasping outsourcing, 38 percent of these respondents said they paid additional, hidden costs for services which are not include in their contracts. The 57 percent of the respondents who told the necessity to put into practice the standard, quality and advancement when building outsourcing relationships responded at a 31 percent clip that
  46. 46. once a contract was signed, outsourcing salesmen become contented. There are also other problems cited which include too much inflexibility from binding contracts that prevent flexibility when amendments are needed and the findings that salesmen have not gotten the capacity to give the level of costs savings and quality expected by the clients availing the outsourcing services. It is clear from the fact that the quality of the standard that the outsourcing services are showing right now is gradually deteriorating. Therefore, the industry should take appropriate measures to improve the nearly stinking, once-quality-approved service provider available at hand. Let us not let the once-gleaming outsourcing industry take its way to the junk, instead, repaint it with sure hopes by doing what it is proper to be done. Source: Finding Better Ways of Doing Business? Outsource!
  47. 47. by Roy Jonathan del Rosario Does your internal business process seem so sluggish? Does your workers lack expertise with the tasks they are asked to perform? This might be the time for you to outsource! But do you know what that means? It is evident in the present day living that technology is becoming more and more highly advanced and the economy as well, is becoming exceptionally globalized as seen with the great occupation of transnational firms on our local market. Economic globalization. Technology Advancement. Highly exceptional cuastomer care services. We have named it all. These are the raw factors that have significantly boosted competition in nearly all markets locally and internationally. This of course has been the catalyst for basic change on how businesses view their sourcing tactics and has pushed them to seek for better ways to be more competitive with their undertakings. Outsourcing gives opportunity by helping companies to set eyes to the value chain for high leverage areas and helps them to better use their resources to engage with these areas. Outsourcing helps achieve combative benefit by focusing on core competencies. Outsourcing non-core tasks, which internal employees have less knowledge with it than outourcers who possess expertise with certain fields, gives opportunity to the companies to: better utilize internal resources, expand responsiveness to client needs, diminish fiscal risks by capital investments reduction and boil down product cycle times. Like any other businesses where we can't control it, Outsourcing has risks as well. Companies could lose skills and expertise; they could also lose control of the tasks being performed by the outsourcing companies; lacking of confidentiality since many important and sometimes confidntial accounts are being passed to the outsourcing companies for some purposes; and companies are unable to monitor costs. Not all these risks are preventable but some can be minimized. Among these include: selecting partners carefully, clarifying goals and expectations from the outset, securing a confidentiality agreement, developing strong partnership with supplier, simplifying the interface between the two organizations, and focusing communications. The impact of outsourcing can extend beyond cost reduction to include enhanced quality and service based on partnerships with best-in-class suppliers. source: Call Centers: Hyping RP thru its independence from OFW dollars by Roy Jonathan del Rosario
  48. 48. For many years or so, overseas working has been the main contributor of large revenues to our economy. Due to the strong demand for domestic helpers, industrial workers such as architects and engineers, and more recently the need of other nations for nurses and educators, it was workers which became Philippines' chief export products to other nations. But the recent break through of call centers and the large growth in the number of companies that avail business process outsourcing have made a large impact in the Philippine economy in a quite ameliorating manner. The Philippine economy finds the upsurging industry of call centers and the business process outsourcing a very viable force to help wean it from its dependence on the income that workers overseas produce and to make an inflation in its potential for the growth of the economy. The Philippine government have also endorsed the Philippines to foreign investors for more outsourcers since Philippines is a well-competitive offshore destination for outsourcing due to its strong production of workers with high proficiency in the english language and stong affinity with the western culture. To allure more investors to outsource here, the government also gave budget heavily for the advancement of infrastructure since it may turn off investors because of the shortcomings these infrstructures may cause. President Arroyo stressed that the business process outsourcing and call center business which have been the major generator of huge revenues to the economy will be the main factor in achieving the government's goal of achieving 5.5 to 6.2 percent growth in gross domestic product this year alone. The telecommunications business would remain aggressive because of the exitence of Voice Over Internnet Protocol (VOIP), which enables agents and customers to make long distance calls with the use of the internet. As predicted, the business process outsourcing sector would become more aggressive, enabling the country earn more foreign exchange without many Filipinos going overseas to work as care givers, industrial workers or teachers. source: Culture Affinity: Is it necessary in offshoring? by Roy Jonathan del Rosario Yes, culture affinity is a strong factor considered by transnational companies in choosing a destination that would best upsurge their capability on achieving the same or better quality of workforce they have in their own country, only that they have better income generation here because of low employment cost.
  49. 49. India and the Philippines are the two leading offshore destinations in Asia as of now due to the strong workforce the two nations produce and the quality of staff they have. Also important to note, Cultural affinity is another vital factor to the offshoring transnational companies to be able to hire workers with well-grasped alignment with the customs their hiring companies have. Good examples of this are the cultural alignment of Philippines and India with their respective offshoring companies. As what was carved on the pages of the Philippine history, Philippines has been under the ruling of the Americans for quite a long period. With this, Filipinos have learned and acquired the way western people live, think, work and talk. Because of these clear facts, American companies are comfortable that the Philippines is the best choice among all the Asian countries in terms of English proficiency, attitude towards work and of course, close cultural affinity. They believe that with these characteristics, Filipinos could confidently deal with the transnational clients which mostly are Americans. Another good example is the Indians’ close cultural affinity with the British people. During the long existence of British occupation in their land, they were exposed to Britain’s culture and infrastructure that is why Indians have a very well-built and strong infrastructure. In the outsourcing jargon, it is referred to as “virtual collocation” or crucially having teams from several areas working for a common goal. Working with several teams from numerous countries means communication does not only takes place on an individual level but on a CULTURAL level as well. In the outsourcing industry, culture upholds implications more intricate than simple difference in verbal communication or time zone. And culture is a vast and critical factor to be taken into account by transnational outsourcers because culture is something no software can absolutely address. Source: Outsourcing and Offshoring. . . do they mean the same? by Roy Jonathan del Rosario Words are so multifaceted that they seem to have a variety of definitions that may somewhat mean the same or nearly-similar for some circumstances. It shows how versatile the modern language is, that it could give us a hard time figuring out what a multifariously-defined word really meant in a certain communication process. And in the business industry where words are often being modified, it will probably be hard to understand the more appropriate sense of a certain business jargon if there is just a little
  50. 50. understanding about it. Plus the fact that the wordbook is not that reliable when it comes to the most recent business buzzwords. In the outsourcing industry, the terms ‘outsourcing’ and ‘offshoring’ are most commonly interchanged due to people’s lack of good understanding about it. In light of this, a study conducted by foreign research organizations provided viable and more appropriate definitions of the two words. According to the study, OFFSHORING is the act of relocation of a company when it opts to do its operation overseas or in other country chiefly to hire workers from the third world countries like Philippines and India because of low employment cost. A customer service function may be offshored from the original site, which is where the business really is located, to a foreign country, but it is still done or operated by agents who work for the business, though located in a foreign land. On the other hand, OUTSOURCING is a make-or-buy decision where a business opts to avail a product or service that was previously done internally. For instance, when a firm outsources its customer service function, it chooses to purchase that service from a third-party provider that has expertise in a certain field. Now it’s clear. I hope it will finally be unmistakable to the readers and I hope you finally have grasped on the most appropriate definition of these two outsourcing-essential terms. Source: article=articles/P2743/30p43/30p43.asp&guid= Outsourcing: In the Deepest Sense of its Being by Roy Jonathan del Rosario I have been searching for the most profound definition of the term ‘outsourcing’ on the net. Yet, all of them seem to be well appropriate for its being. But going through a lot of browsing, skimming and collecting
  51. 51. these meanings from different sources helped me a lot in breaking down these definitions with a fine- toothed comb. In searching the web, we find such statements which do not thoroughly define the things we wanted to know like the term ‘Outsourcing’ for instance. Some information in the net gives us inaccurate or unsuitable ideas which may hinder us from acquiring the exact meaning of a certain word. After a week of writing just about one topic which is ‘outsourcing’, I guess I have found the most appropriately- explained definition of the word that the web has offered. According to it, OUTSOURCING is the passing on of tasks from an internal production to an external