Outsourcing trends show that The the Philippines has begun to close the lead that India has in terms of viability for BPO companies.
The original wave came in the form of contact centers - even now, contact centers account for a large percentage of all BPO operations within the country.
However, IT outsourcing companies are also looking towards The the Philippines as a possible option for their "back office" needs.
Analysts believe the shift in outsourcing trends can be pinned down to a number of factors present among the Filipino population that is harder to find in places such as Hyderabad or Chennai.
The first is an affinity for the language and culture of the United States - the country that accounts for 70% of all off-shoring and outsourcing markets.
As a former American colony, the local population has a firmer grasp of American English.
A second major factor believed to be responsible for the change is in the talent pool.
While talent poaching is present, the frequency is nowhere near that of what occurs in India, and the price for such skilled employees is also much lower.
The primary thing factor that some companies find limiting in outsourcing to The the Philippines, however, lies in infrastructure.
Office space rentals have soared since the initial contact center boom.
There is a clear risk of an increase in of office space rent in the prime business areas, such as Makati City, going further up due to a lack of supply to meet the demand.
There are developers eagerly attempting to carve a piece of the pie, and the government has plans in place to improve existing infrastructure, but.
for For the time being, office space is slowly reaching an expensive premium.
It isn't just in Makati - the financial capital of the country - where BPO is becoming a prevalent occupier of office space, though.
Makati also does not hold a monopoly on office space for BPO and IT outsourcing companies.
Low-rise buildings outside of the city are also known to be attractive to outsourcing companies because of the option to occupy the entire building all on their own.
Business centers such as Ortigas, Eastwood, and Alabang have managed to keep the rental rate of competing areas from becoming too expensive.
Developers have also been building in other major cities in the country to keep up with the demand for more office space.
BPO and outsourcing in The the Philippines account for between 7 to 15% of the global market, second only to India.
Knowledge process outsourcing is also on the increase, particularly in the legal transcription fields.
The Philippine legal system is very similar to that of the U.
S.
, so local legal talent has a better grasp of important cases and legal precedents than their counterparts elsewhere.
The Philippines is also starting to leverage its local creative talent pool, furthering the expansion of offered services from simple contact centers to areas such as web design and content creation.
This increases the demand for more office space to be available, and developers are starting to take notice.
Low-rise buildings in suburban BPO parks are becoming more populated, with other businesses such as fast food chains appearing nearby to cater to what is almost a pre-built customer base.
High-rise buildings are also becoming increasingly occupied by BPO and IT outsourcing companies, even outside the financial and business hub that is Makati.
More traditional office space occupants will likely remain the majority, but outsourcing companies are starting to bridge the gap.
IT outsourcing.
These companies are rapidly becoming a major economic factor in the country, and the investment of both private and public organizations in improving and increasing the availability of office space in Makati is seen as highly beneficial.
The original wave came in the form of contact centers - even now, contact centers account for a large percentage of all BPO operations within the country.
However, IT outsourcing companies are also looking towards The the Philippines as a possible option for their "back office" needs.
Analysts believe the shift in outsourcing trends can be pinned down to a number of factors present among the Filipino population that is harder to find in places such as Hyderabad or Chennai.
The first is an affinity for the language and culture of the United States - the country that accounts for 70% of all off-shoring and outsourcing markets.
As a former American colony, the local population has a firmer grasp of American English.
A second major factor believed to be responsible for the change is in the talent pool.
While talent poaching is present, the frequency is nowhere near that of what occurs in India, and the price for such skilled employees is also much lower.
The primary thing factor that some companies find limiting in outsourcing to The the Philippines, however, lies in infrastructure.
Office space rentals have soared since the initial contact center boom.
There is a clear risk of an increase in of office space rent in the prime business areas, such as Makati City, going further up due to a lack of supply to meet the demand.
There are developers eagerly attempting to carve a piece of the pie, and the government has plans in place to improve existing infrastructure, but.
for For the time being, office space is slowly reaching an expensive premium.
It isn't just in Makati - the financial capital of the country - where BPO is becoming a prevalent occupier of office space, though.
Makati also does not hold a monopoly on office space for BPO and IT outsourcing companies.
Low-rise buildings outside of the city are also known to be attractive to outsourcing companies because of the option to occupy the entire building all on their own.
Business centers such as Ortigas, Eastwood, and Alabang have managed to keep the rental rate of competing areas from becoming too expensive.
Developers have also been building in other major cities in the country to keep up with the demand for more office space.
BPO and outsourcing in The the Philippines account for between 7 to 15% of the global market, second only to India.
Knowledge process outsourcing is also on the increase, particularly in the legal transcription fields.
The Philippine legal system is very similar to that of the U.
S.
, so local legal talent has a better grasp of important cases and legal precedents than their counterparts elsewhere.
The Philippines is also starting to leverage its local creative talent pool, furthering the expansion of offered services from simple contact centers to areas such as web design and content creation.
This increases the demand for more office space to be available, and developers are starting to take notice.
Low-rise buildings in suburban BPO parks are becoming more populated, with other businesses such as fast food chains appearing nearby to cater to what is almost a pre-built customer base.
High-rise buildings are also becoming increasingly occupied by BPO and IT outsourcing companies, even outside the financial and business hub that is Makati.
More traditional office space occupants will likely remain the majority, but outsourcing companies are starting to bridge the gap.
IT outsourcing.
These companies are rapidly becoming a major economic factor in the country, and the investment of both private and public organizations in improving and increasing the availability of office space in Makati is seen as highly beneficial.