Vol. XXI, No. 177 [ Business World Online ]
Thursday, April 10, 2008 | MANILA, PHILIPPINES
THE PHILIPPINE business process outsourcing (BPO) industry should focus on markets outside the United States if it is to corner 10% of the global BPO market by 2010, the European Chamber of Commerce of the Philippines (ECCP) yesterday said.
ECCP Executive Vice-President Henry Schumacher said the Philippines should start setting its sights on other large and dynamic markets such as Europe to expand its global reach.
"The Philippines has successfully invaded the US, but Europe is a huge market. India is everywhere, the Philippines isn’t. We have to go out and sell the Philippines as a good offshoring and outsourcing destination," he told reporters in a press briefing.
He stressed a lot of work needs to be done if the country is to achieve a 10% global market share in two years, as stipulated in the Business Processing Association of the Philippines (BPA/P) Road-map 2010.
Data from the European IT-Service Center Foundation showed that local BPO’s share in Europe’s $40-billion industry was just 1.2% as of 2007, while European accounts made up 10% of the $5-billion local industry revenues.
"We have to tap the European market next. There are huge opportunities for the Philippines. As the European market grows, we can grow with them," European IT-Service Center Foundation Business Development Manager Stephanie Weber said.
For his part, BPA/P Chief Executive Officer Oscar Sañez said the Philippines is ready to take advantage of opportunities in Europe. "For one, their currency is more stable. It’s important to see predictability and stability in this area. Also, there are studies saying the US economic recession will not have a significant impact on Europe," he said.
Issues on transparency and corruption, however, continue to discourage foreign investments, Mr. Schumacher said. The country should also offer more attractive incentive schemes to convince investors to come in, he added.
Ms. Weber, for her part, said lack of positive news is a big factor in the decision-making process of prospective investors. "We have to put the country in the radar screen of these foreign companies. I think the biggest threat to investments is the Philippines’ reputation [corruption issues, coup attempts]," she said.
To promote the Philippines as a prime BPO and IT location for European firms, the government and the private sector have formed TeamEurope, an initiative aimed at providing information on business opportunities in the Philippines and Europe through its Web site, www.team-europe-philippines.com. The group is composed of the Board of Investments, ECCP, BPA/P, European IT-Service Center, British Chamber of Commerce of the Philippines, Center for International Trade Expositions and Missions, and the Commission on Information and Communications Technology. — Bernardette S. Sto. Domingo
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