BPO business lucrative but tough, risky venture

CEBU, Philippines - While the outsourcing/offshoring business is considered as one of the fastest growing industries in the Philippines, local investors are warned to be careful on investing in this highly lucrative but edgy business venture.

This is one of the topics that will be discussed in the upcoming 9th International Contact Center Conference and Expo (ICCCE) to be held in Cebu at Shangri-La Mactan Resort and Spa on August 28 to 30 this year.

Organized by the Contact Center Association of the Philippines (CCAP), the largest outsourcing convention and exhibition in the world, will gather over 2,000 decision makers, players, experts of the IT and Business Process management industry.

CCAP president Benedict Hernandez in a press conference said that although there is a high interest from the local investors to enter into the IT and business process management sector in the Philippines, an intensive business study must be considered to compete with the already established and multinational companies who have already etched their names in the world’s growing outsourcing business.

However, while there are also a number of success stories of Filipino-owned BPO companies operating in the Philippines, strong collaboration and mentoring from the experts and experienced players are needed to take advantage of the business opportunities offered by the booming outsourcing business.

During the two-day convention, aside from discussing industry’s challenges, trends, and market opportunities, and ultimately draft industry-wide action plans, CCAP will also hold a mentoring session for interested local entrepreneurs who may want to enter into the outsourcing business.

The mentoring session called “Call Center in Box” will be held, which will orient local entrepreneurs the “bane and boon” in BPO business, especially for the new entrants.

“This is not just having money, this business is several more,” said Roberto David, CCAP chairman Raffy S. David.

CCAP has a total membership of 91 BPO companies, a growing number of this are Filipino-owned.

“There have been call centers along the way that come and go, he said. Problems like failed relationship with clients, employees, among others are the primary reasons for the business failure, however, he said if the business is managed carefully, and gets good mentoring, strong connection and interaction with the industry players,  locally-owned BPOs are deemed to well compete with the multinationals.

Meanwhile, the hosting of Cebu for the 9th ICCCE, which is the largest outsourcing and offshoring convention in the world, is seen to be the best way for Cebu to make big pitch, in luring more BPO investors around the world.

“Cebu has always been high-growth destination for BPO, because it provides perfect balance for business and leisure, as well as its access to phenomenal talents,” said Hernandez.

Hernandez also urged the BPO players in Cebu to participate on this two-day event, while this will be become a nurturing venture to seize the growing outsourcing business in the world, as well as make a stronger voice to the government to further support the industry in terms of favorable legislation, policies, and general much friendlier business environment.

ICCE is the flagship event of CCAP, the umbrella group of the Philippine contact center industry. It has more than 90 global and local contact center members operating in the Philippines which together makes up more than 80 percent of industry revenues and employs almost half a million professionals.

Now on its 9th year, ICCCE 2013 carries the theme “Where the world meets the Philippines to cement its reputation as the world’s largest trade event for contact center professionals.

Also, helpful discussions on managing the effects of currency fluctuations to business competitiveness, the emerging geo-political forces and its effect to outsourcing, risk-proofing growth plans and strategies, manpower sourcing, and integrating social media, big data, analytics and mobile computing in customer relations, will be tackled during the event./JOB (FREEMAN)