outline i. why outsource business processes? ii. the specific opportunities in the philippines
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THE PHILIPPINES Your Partner in Global Expansion A document to introduce the possibilities for outsourcing of customer support and other business processes to the Philippines. OUTLINE I. Why outsource business processes? II. The specific opportunities in the Philippines - PowerPoint PPT PresentationTRANSCRIPT
THE PHILIPPINESYour Partner in Global Expansion
A document to introduce the possibilities for outsourcing of customer support and other business processes to the Philippines
OUTLINE
I. Why outsource business processes?
II. The specific opportunities in the Philippines
III. Why the Philippines? Advantages
IV. Join the other MNCs
V. Invitation
I. Why outsource business processes?
REASON # 1As businesses develop and establish themselves as a supplier of quality, high-
end products, there arises a parallel need to extend better customer care and customer support.
REASON # 2Stiff competition means products are chosen not only because of price, quality,
nor features, but also because of the nature of support and close relationship extended by the company to its customers.
REASON # 3As businesses expand abroad and become global companies servicing different
markets, capability to connect with customers using different languages, especially English, becomes important.
REASON # 4To be as competitive as possible, companies need to focus on their core
strengths and businesses where they are most efficient, and then outsourcing their other backroom processes to others who can do it better and cheaper becomes an effective solution.
II. The specific opportunities in the Philippines
The Philippines is the world-leader in these outsourcing services:
III. Why the Philippines? The advantages of locating with us
Young Labor force of 32 million, all fluent in English, and highly educated
The Swiss International Institute for Management Development (IIMD) study in 2004 rates the Philippines among 60 countries in the Asia Pacific:
#1 in the availability of skilled workers (out of 33 million total labor force)
#3 in the availability of senior managers #4 in the availability of IT professionals #10 in the availability of accounting and financial skills #10 in the availability of expat middle management #12 in qualified engineers.
Available Quality Human Resources
World-class English Proficiency Strong customer service orientation Long tradition of excellence in the professions Highly trainable Fast learning curve Cost efficient Universal cultural adaptation, affinity to
Western culture High level of commitment and loyalty
Available Quality Human Resources
… Lowest IT Salary among 32 countries for same skills
Country Total Cash Country Total Cash Country Total Cash Country Total Cash
23 Venezuela $17,600 Brazil $25,400 Brazil $43,000 Taiwan $64,400
24 Brazil 16,400 Venezuela 24,900 Poland 41,000 Argentina 61,400
25 Argentina 14,100 Argentina 21,800 Argentina 35,800 Poland 58,500
26 Malaysia 13,100 China 19,100 China 31,700 China 58,400
27 China 12,400 Malaysia 17,600 Indonesia 26,500 Indonesia 44,600
28 Bulgaria 10,400 Indonesia 15,800 India 24,500 India 39,000
29 India 9,700 India 15,400 Vietnam 24,000 Bulgaria 34,200
30 Indonesia 9,400 Bulgaria 14,200 Malaysia 23,700 Malaysia 31,900
31 Vietnam 8,300 Vietnam 14,100 Bulgaria 22,100 Vietnam 28,700
32 Philippines 7,900 Philippines 11,600 Philippines 17,000 Philippines 24,900
Source: Mercer Human Resource Consulting (2003/2004 IT Functions Salary Differential Worldwide Report)
2003/2004 Ten Lowest-Paying Countries (Gross Pay)
RANK
TEAM LEADER (Sr. Professional)
SUPERVISOR (Experienced Prof.)
MANAGER (Specialist)
SENIOR MANAGER (Expert)
Robust, Redundant International Networks and Connectivity
Expanding Multi-media Infrastructure 24x7x 365 support operation Aggressive lead times in provisioning of
international leased circuits: 30-45 days
Deregulated Telecommunications Industry
More stable, robust, highly scalable due to numerous fiber optic landings/links
Cost of bandwidth has gone down by 70% in the last 4 years (From US$ 14,000 in 2001 to today’s rates of US$ 2,000 per month for E1 lines to U.S.)
Presence of Dedicated IT Parks Right in the Center of Business Districts
Reliable Infrastructure Support
11 – – Global Market Rents Report by CB Richard Ellis, Aug 2005 2 – Global Office Real EstateHighlights by Colliers Int’l., June 2005
Reliable Infrastructure Support REAL-ESTATE
Low rates with liberal lease agreement terms; mostly administered by international property management companies (JonesLangLasalle, FPDSavills, CB Richard Ellis, Colliers, etc.)
Total Occupation Cost for Prime Office Space in CBD (US$/ft2/year)11
Mumbai Shanghai Singapore Manila
Rent/Lease Rate 56.43 40.49 33.71 13.43 - Typical Lease Terms 9 yrs. 2-3 yrs. 3 yrs. 3-5 yrs. - Typical Months Free 1 mo. 1-2 mos. 1 mo. 3 mos.Existing Inventory (ft2)22 8,865,605 33,768,893 45,725,047 28,327,249 Under Construction (ft2)2 0 6,819,430 704,100 153,868
POWER Stable with excess capacity over current demand
– Back-up generator system: a regular feature in almost all buildings
Regional Hub for Logistics (UPS, Lufthansa Technik)
Good Access to the important 550 Million People ASEAN Market, plus ongoing bilateral trade negotiations with Japan (120 M affluent population)
Reachable within 4 hours by plane from Asian key cities Japan Korea China Singapore Taipei Thailand Indonesia
Strategically Located in Asia
Historical
Educational
Political
Accounting
National Standards and practice adhering to Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IAS)
Legal
Banking & Finance, Insurance
Entertainment
Strong Affinity With the West
Friendly people Value-for-money housing Modern recreational facilities First-rate educational institutions
Presence of International schools
Expatriates’ top choice for quality of life
Hospitable Lifestyle
Government Support
ICT enjoys the full support of Philippine President Gloria Arroyo, and is considered a high priority sector
E-commerce Law is in place ICT incentives available
4 to 6 years Income Tax Holiday Special 5% tax rate on gross income after the
lapse of ITH (for IT Park/Ecozone locators) Tax and duty exemption on imported capital
equipment (for IT Park/Ecozone locators) Unrestricted use of consigned equipment Exemption from wharfage dues Employment of foreign nationals Exemption from 10% input VAT on allowable
local purchase of goods and services (e.g., communication charges)
Investment Incentives available:
IV. Join the other global companies outsourcing in the Philippines
Contact Centers (including customer support call centers):Growth has been phenomenal, with the
industry growing 79% last 2005! 87% of our foreign customers are from the
USA, a testament to the Philippines’ strength in English contact centers!
Majority of the top call centers have set up operations over the last two years and many of the Fortune 500 companies are outsourcing to the Philippines, as can be seen in the next pages!
The world’s top Contact Center companies are in the Philippines:
Some Fortune 500 Clients outsourcing to the Philippines:
Companies who have setup their own in-house Contact Center operations in the Philippines:
Other Business Processes:
Meta Group cites the Philippines as Asia’s “Bright Spot” for outsourcing
We specialize in Finance and Accounting, Human Resources Administration , software development, and engineering design
Key players include AIG, JPMorgan, Alitalia, Citibank, P&G, Chevron Texaco, Accenture, Shell,HSBC and SGS, as follows:
Who Are With Us
Companies who are already outsourcing finance, HR, and other processes in the Philippines:
V. Invitation
Value Proposition
Better Quality Delivery At A Significantly
Reduced Cost
Our Invitation
We invite you and your customer care officials to visit the Philippines. We can assist you and put together an itinerary that will demonstrate exactly the opportunities that are mentioned in this document
Contact details: •Mr. Emmanuel W. Ang, Commercial Attaché and Director, Philippine Trade and Investment Center, Guangzhou, PROC•Address: Rm. 713, Guangdong International Hotel, 339 Huanshi Dong Lu, Guangzhou, PROC, 510098•Telephone: (8620)83316331; (8620)83312391 for fax