Dutch group urges RP‘s BPO sector to explore European market

Encouraged by the potential of the business process outsourcing (BPO) sector in the Philippines a Dutch organization is challenging the industry to further enhance its capabilities as an international supplier of BPO services and create a niche in the European market.

The Center for the Promotion of Imports from Developing Countries (CBI) of the Netherlands, a group providing expertise to local exporters from developing countries, is continuing its export development program for the Philippine BPO sector through its integrated program dubbed as CBI Export Development Program for the Philippine BPO Industry.

The program is being implemented by the Department of Trade and Industry’s Bureau of Export Trade Promotion (BETP).

BPO services, one of the sub-sectors of the information technology-enabled services, are included in DTI’s Revenue Streams, a list of priority products for export promotion under the Philippine Export Development Plan (PEDP).

"While the Philippines remains predominantly into call centers, it can develop special niches in BPO-related services for European firms," according to Trade and Industry Secretary Peter B. Favila as he noted that demand from the European market for BPO services is quite huge.

"The BPO program of CBI would complement our objective to further position the Philippines as a hub for IT-enabled services," Favila said.

The DTI is pushing for the development of the BPO industry in the country particularly in the areas of call centers, financial services, administrative and payroll, logistics, services such as medical and legal transcription and animation, and engineering services.

"We are encouraging our BPO companies to take advantage of this very rare opportunity as an initial step towards getting a foothold and capturing a sizeable market of European companies planning to outsource offshore. We are happy to note the growing DTI-CBI partnership in many export promotion programs, including auto parts and engineering and natural ingredients," he added.

CBI experts led by Laszlo Klucs and Harry van Geijn are currently in the country to conduct company visits and business meetings with the country’s BPO firms interested in rendering IT-enabled services to European companies.

They initially recommended several firms to participate in the program.

The CBI will make the final selection after assessments of the Philippines, India and South Africa have been concluded.

Companies that will be selected to participate in the BPO program would be provided by CBI with technical assistance, outsourcing audit, and training; market information on the European Union and registration to the EuroITX.com that would post the BPO company’s profile, logo, visibility; EXPRO seminar in Rotterdam; co-financing of quality certification; and assistance in conducting marketing activities in Europe.

Among the companies that met with CBI executives are engaged in a wide array of BPO businesses including: digital printing, data conversion/ medical transcription, data processing, medical transcription, financial services (finance and accounting, payroll and benefits administration), animation, data conversion, document imaging, IT outsourcing, digital 3D modeling and imaging and architectural/ construction designs, logistics management, and human resource development.

Prior to the company visits and business meetings, Klucs and Geijn also conducted a seminar among BPO companies to discuss an overview of the key outsourcing trends in Europe; the outsourcing process; why European companies outsource offshore; offshore outsourcing risks; outsourcing vendor selection; and prospects for BPO companies to participate in CBI’s BPO program.

The Philippines is fast emerging as an important offshore IT service provider in Asia with its wealth of highly skilled, culturally adaptable, and language-proficient professionals. Filipino knowledge workers are servicing some of the biggest multinational companies, in widely diverse fields including software development, engineering and design, web development, animation, business processing, contact centers, medical and legal transcription, and other services powered by information and communications technology.

To date, the Philippines hosts many registered BPO operators, mostly third-party contractors serving global accounts.

Their services range from data base management, insurance claims processing to logistics management and sales and marketing.

Some of the world’s most recognized brands such as Caltex, Procter & Gamble and AIG chose the Philippines as their offshore outsourcing destination.