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By Jenny Cagadas, The Hubport Group
October 06, 2009
Many experts believe that outsourcing demands will continue to decrease next year as some foreign companies take a break from BPO offshore outsourcing and assume a period of scrutiny and observation of their internal mechanisms. This downturn has actually taken effect this year as revenue turnouts for the year 2009, of different outsourcing countries, appeared less than the projected amount that were based from pervious upsurges. This foreseeable decline causes quite a stir in the business process outsourcing industry, which has, for many years, harvested substantial profits from the external demand. Now that it faces additional depreciation next year, what is there to expect for outsourcing, especially in the Philippines?
It was around year 2000 when a number of foreign companies started engaging in partnership with BPO service providers to cater to specific company needs. Because of its promise of lesser expenditure and greater productivity, outsourcing became a more practical option for overseas conglomerates. As further economic depreciation developed, more corporations were forced to adhere to outsourcing as the only means for company survival. Given financial limitations, it became a priority to look for cost-effective ways to run business. But now that there are those who are opting to step back and reassess overall business development, the whole outsourcing industry may also be looking at a drop in stats for the year 2010.
The Philippines is only one of the countries consistently tapped to execute particular business processes left disabled by financial instability. With an abundant supply of talented workers, adequately learned in different fields, the Philippine BPO offshore outsourcing serves as a spring of well-nurtured professionals. The country actually hosts a number of BPO service providers that outsource medical transcription, web design, web development, and other IT based services. They provide expert assistance in web marketing and ably help sites improve their business standing in the internet. As India faces a single-digit profit augmentation in revenue for next year, so will the Philippines experience a small raise in its BPO service provider earnings. However, economic tides are unpredictable and there is still the possibility of change as the year approaches its end. The outsourcing industry may have been predicted to encounter a decline at the onset of the coming year; however, it sure isn’t going to die because of this. The looming economic crisis still requires useful and sensible business solutions like outsourcing. This alone ensures the life of this market for years to come.
This pause in the rise of outsourcing may prove beneficial for outsourcing firms as foreign companies clear up their internal issues and become more prepared with their outsourcing budget. This will subsequently cause fewer problems with outsourced commissions and aid both parties in maintaining a better organized business relationship. Once foreign companies have settled on what they require to be worked on, they will be more willing to set aside budget for outsourcing and comply with worker requests. As a consequence, there will be no delays in work and output will meet and even exceed quota.
As for Philippine outsourcing, interested companies can expect better services. The national government is adamant at preserving the industry and giving incentive to investors in both kind and skill. The Philippine outsourced workforce is encouraged to pursue higher knowledge to upscale the level of service they can provide. By virtue of this, the Philippine BPO offshore outsourcing will continue to thrive despite the decline.
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