DATE POSTED: 08/14/2008

Two British companies have announced plans to set up back office outsourcing centers in the Philippines. Atkins and Balfour Beatty both will be doing engineering work for their offices around the world from newly established centers in Manila according to the British Ambassador, Peter Beckingham.

In addition, the head of the CBI will be visiting Manila in October and it is expected there will be a delegation of more companies who are exploring the Philippines as their outsourcing destination.

This will be of relieve to the Philippines government which just announced a 68% reduction the 5 month in Foreign Direct Investment. The number of new outsourcing companies entering the Philippines appears to be reducing, although ones currently there are continuing to expand.

The other changing dynamic is that the majority of new companies establishing operations in the Philippines were traditionally from the USA but this trend has been shifting towards as more Indian companies are moving here. Pressured by accent and cultural challenges, turnover rates as high as 100% and escalating rental prices in India, they have been moving both call center and knowledge process outsourcing work to the Philippines.

Some of the Indian companies entering are Wipro, Minacs, EXL and there are conflicting reports whether this has been due to strategic moves or after pressure from clients who are frustrated by customer satisfaction from operations in India whilst hearing positive results coming from the Philippines players such as whose Philippines centers top world rankings from customer satisfaction scores.

Author: Outsourcing Insider

Outsourcing Insider consists of a team of regular blog contributors who writes topic about outsourcing and its relation to other industries like social media, finance, healthcare, sales and marketing, contact centers, and data and research.