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PITON Releases Competitiveness Analysis on Philippine BPO Industry
Manila, Philippines (January 3, 2010) – The Philippine IT Offshore Network, Inc (PITON), a strategic offshore BPO consulting firm specializing in providing strategic business process outsourcing (“BPO”) advisory and project management services to North American and European corporations released today a report detailing the country’s key competitiveness as a globally leading offshore destination for BPO services.
According to PITON, the global demand for BPO-related services is expected to reach more than US$ 210 billion by the end of 2010. India and the Philippines, the world’s two largest and leading offshore BPO destinations are expected to benefit most from the ever-growing demand for back-office related works.
“BPO has taken the Philippine economy by storm. From mere $350 million in 2001, the market size is now a whooping $4 billion in 2009. And, at the rate it is going right now, we will undoubtedly see more phenomenal growths for the BPO industry within the coming years”, says Ralf Ellspermann, Chief Executive Officer of PITON.
The country has innate competitive advantages that make it the preferred destination over other leading BPO hubs:
World-Class English Proficiency: The Philippines has achieved an unmatched level of English language proficiency that Gartner, a market research firm, sets the country apart from other competitive English-speaking destinations. Unlike India that has a British English language orientation, 72% of all Filipinos are fluent in American English, making the Philippines the third largest English speaking nation in the world. Their ability to adopt accents and understand American idiomatic expressions, and their verbal skills which are clearer and more understandable to U.S. buyers, make the Filipinos’ language proficiency superior to that of India, Ireland or other offshore BPO destinations.
Closest Affinity for U.S. Culture: The Philippines has the closest cultural affinity to the U.S. as a result of the country being under U.S. protectorate for more than five decades. The proximity of U.S. and Philippine cultures, which is manifested in the adaptation of various U.S. business and government processes, paves for quick and smooth cultural assimilation of foreigners managing BPO operations in the country.
Availability of Highly Skilled Workforce: With an annual output of approximately 400,000 graduates, the country is well positioned to support its exponentially growing BPO industry. Half of these graduates have degrees in business management, mass communication, and other courses that trained them to become proficient workers in the highly-demanding BPO environment. Also, the literacy rate in the Philippines is 94%, considered second highest in Asia.
Infrastructure: The overall infrastructure (including power, water, roads and telecommunications) of the Philippines is better to that of India, China or other offshore options. It’s being fully redundant and cost-efficient ensures no business interruptions.
Cost Advantages: Since the country has some of the lowest hourly labor rates in the world, up to 60% savings can be incurred by outsourcing organizations from their labor costs.
Over the past five years, the Philippines has seen significant influx of BPO players, especially for voice-related services. With this, the government’s efforts of clearly and distinctively branding Philippines as the most competitive BPO destination are paying off. As more and more companies from around the world become entice to the vast opportunities in the country, the Philippines will soon become the world’s BPO hub, and will likely overshadow the giant BPO industries of India and China.
About PITON
PITON is a leading Philippine-based consulting firm specializing in providing strategic business process outsourcing (“BPO”) advisory and project management services to North American and European corporations. PITON’s offshore BPO services are designed to help companies to successfully migrate various business processes to leading Philippine-based BPO vendors in a risk-free environment. With a 100% on the Philippines’ BPO industry PITON’s key value proposition lies in its unmatched market and vendor expertise. Backed up by a network of the country’s premier BPO service providers PITON ranks as the largest and leading BPO vendor network in the Philippines.
For more information, please visit our us at www.piton-global.com
For additional information please contact:
Denise White
VP-Public & Media Relations
Email:denise.white@piton-global.com
URL://www.piton-global.com
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