Over the past five years, the Philippines has grown to become a worldwide provider of Offshore Business Process Outsourced (BPO) Services. Companies from the North America, Europe and Australia have realized the need to outsource their customer service and back office requirements to take advantage of lower costs and retain their profitability and edge.

For the year 2010, projected annual revenue is US$12 billion and a projected employee requirement of 920,000.

Accomplishments in the past 5 years:

• Built a global brand for Philippines as contact center location of choice
• Creation of a new sub culture and night economy
• Took the ICT industry to next level of growth
• Computer purchases
• Significant increase in take up of telco leased lines
• Ended the real estate glut in Metro Manila
• New buildings are now being put up
• Made new opportunities available in provinces
• New government regulations and policies to make the Philippines globally competitive

Key Market Trends

Average call center size is shrinking

• 88% of all call centers to be under 100 seats
• Fastest growing segment will be 40 seats or less
• SME needs driving the move to smaller CC
• Specialization and verticalization
• Increasing use of “work-at-home” or remote agents
• The large (100 seat and over) market segment will exhibit more conservative buying patterns

IP-based contact center adoption

• The IP contact center market will be $824M by 2008
• The outsourcing sector, “call center for hire”, is leading the way in IP adoption
• IP-based contact centers enable:
• Geographic independence
• Lower total cost of ownership
• Centralized call center managementt & administration
• Converged voice and data applications, multi-channel contact and a seamless user experience

A Wealth of Opportunities

• Offshoring call center operations has become an attractive option for many companies, with an increasing number of small and mid-sized U.S. businesses.
• Global outsourcing revenues estimated at US$100 billion in 2006.
• Voice over Internet Protocol (VoIP) has significantly reduced the cost of long-distance calling and allows for easy data transfer.
• Easier than ever for overseas entrepreneurs to enter the call center market using hosted on-demand call center models such as that offered by Five9, Inc., which virtually eliminate many of the up-front capital expenses associated with setting up a call center.

Why the Philippines?

• The Profit After Tax margin for a call center located in the Philippines is between 20% and 25%, compared with 5% to 10% in the U.S.
• Skilled labor force of approximately 29 million people, all of whom are IT-enabled, highly trainable and proficient in English. Filipino workers are also familiar with the U.S. and its culture, and receptive to western business practices and work standards.
• Robust and reliable telecommunications infrastructure.
• Close cultural links to the USA
• Strategically located for global trade.