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Philippines is Second Most Attractive Outsourcing Location in the World

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A recent report by an international real estate advisory firm featured the Philippines in a great light. Cushman & Wakefield recently released its report titled “Where in the World? Business Process Outsourcing (BPO) and Shared Service Location Index,” and it was stated in the report that the Philippines is the second among the most attractive global outsourcing locations on the basis of risks, costs and conditions. Cushman & Wakefield (C&W) was established in 1917 in New York City and it is the world’s largest privately-held commercial real estate services firm, with approximately 16,000 employees operating from 248 offices in 58 countries.

According to the report, the Philippines’ improved ranking is partly due to its cost of labor and the availability of skilled, English-speaking workers. “One of the most significant changes in the global BPO market is the emergence of the Philippines as the world’s global leader of BPO and shared services operations,” the report stated.

In 2014, the Philippines it hit a record $18.4 billion in revenue, and it has taken away some 70% of India’s voice and call center operations.   

“A demand for English proficiency from English speaking industrialized nations is more than met by the Philippines, which graduates some 470,000 English proficient college students every year and has a national English proficiency rating of 92.5 percent. The English dialect of the Filipino workforce is also well received in the US,” Cushman & Wakefield said in the report.

“A demand for English proficiency from English speaking industrialised nations is more than met by the Philippines, which graduates some 470,000 English proficient college students every year and has a national English proficiency rating of 92.5%. The English dialect of the Filipino workforce is also well received within the US,” the report stated.

The Philippine BPO industry also continues to take a bite out India’s own BPO industry. Cushman & Wakefield explained that the employability of Filipino students also remains a key factor in the migration of operations from India. Thirty percent of Filipino students are employable, compared to India’s 10 percent. “This gives the Philippines a competitive advantage in enabling companies to reduce investment in their in-house training programs, which can be tantamount to a significant overhead,” it went on to state.

It was also pointed out in the report that the Philippines has come out as 82nd out of 146 in the Forbes ‘Best Countries for Business’ survey, outplacing both India and China.

 The BPO and Shared Service Location Index made an assessment of  the economic status of 36 countries that had BPO industries that received the largest foreign direct investments in the last five years up to the third quarter of 2014. The Index also monitored the said countries’ employment levels when it came to BPO-related jobs. The factors that were considered in the assessment were related to costs, risks and conditions. It was revealed that The Philippines came second among the 36 in terms of cost; 34th in terms of conditions; and 27th in terms of risk.

Third on the list of top outsourcing locations was Bulgaria, followed by Romania, Peru, Malaysia, El Salvador, Brazil, Hungary, and China.

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