A presentation delivered by Raymond Antonio Lacdao of the Business Processing Association of the Philippines (http://www.bpap.org) last June 2011 at National Computer Center, Quezon City.
2. Who Are With Us
Voice – Based Services Homegrown Suppliers
Suppliers
Banking, Financial Services and Insurance IT and Software Services
NASSCOM’S Top BPOs Shared Service Centers / Captives
3. Who Are With Us
Engineering Services Outsourcing Creative Services Outsourcing
HR Outsourcing Medical Services Outsourcing Legal Process Outsourcing
Clinical Research Outsourcing Maintenance, Repair, Overhaul Services
5. FTEs % inc. Revenue % inc.
fr YA (US$B) fr YA
Voice BPO 344,000 23% 6,100 21%
Non-voice BPO/KPO 101,750 18% 1,628 30%
ITO 44,962 27% 725 28%
Transcription 14,000 8% 102 11%
ESO 10,600 -12% 201 -12%
Animation 8,640 8% 142 18%
Game development 1,230 92% 7 56%
TOTAL FTEs 525,182 24% 8,905 26%
Source: ACPI, BPAP, CCAP, GDAP, HIMOAP, PSIA (2011). All rights reserved.
6. Number of college degree 2009 Annual
graduates growth
Abundant labor force of 38 million
Medical and natural sciences, 132,244 Over 450,000 college graduates per year
allied fields Large pool of accounting and business
Business, accounting, and related 107,272 graduates
fields English proficiency
Affinity with Western culture
Social and behavioral sciences, 68,764
Customer service orientation
education
Highly trainable
Engineering and architecture 50,734 Cost effective
IT-related and mathematics 47,928 High level of commitment and loyalty
Fine arts, masscom, humanities 12,269
TOTAL Tertiary level 469,654 5.8%
Pop Labor force Unemp rate Literacy
World 6,768M 3,179M 8.7% 82.0%
India 1,130M 509M 7.8% 61.0%
China 1,330M 814M
Suitability rates are empirically based on a total of >80 4.3% 91.6%
interviews with HR professionals working in each country
Brazil 201M 102M 8.1% 88.6%
Philippines 100M 38M 7.5% 92.6%
6
Source: CHED 2010; CIA World Factbook 2010
7. Wide range of industry-verticals serviced Captives of 60+ Fortune 1000 firms
Supplier presence across industry verticals1 Banking and financial services
# FTEs servicing (’000s)
# Firms
75+
50+ MDR and healthcare
40+
40+
Telecom, travel, energy, and media
25+
15+
25+
BFSI = banking, financial services, insurance; MDR = manufacturing, distribution, retail
1 Per Everest-O2P survey of ~200 firms across the Philippines IT-BPO industry
Sources: BPAP database; survey results
9. Expertise in diverse BPO and KPO functions: Finance/
HR/Publishing/Supply Chain/Legal/Medical
- Accounting and bookkeeping - Legal Transcription
- Account maintenance - Litigation Support
- Accounts receivable collection - Content Development
- Market Research and Analysis
- Accounts payable processing -Contract Summarization
-Fund adm/reconciliation - Editing, Sub-titling, Translation - Intellectual Property Management
- Payroll processing - Publishing - Account Risk Management
- Retail banking support - Health Services revenue cycle - Equities/Portfolio research & analysis
- Asset management - Travel Services Back Office
- Financial analysis and auditing - Credit/Loan processing
- Inventory control and purchasing - Health Insurance
- Expense and revenue reporting - General Insurance
- Financial reporting - Sales and marketing
- Human resources administration - Tax reporting
- Customer Management - Financial leasing
- Credit card administration - Transaction management
- Factoring and stock brokering - Sourcing and Procurement
- Revenue management - Logistics
- Transaction processing - Disaster recovery
- Business data processing - Business Intelligence
- Database management - Network management
- Supply chain management - Warehouse and inventory Mgmt
copyright 2009: Business Processing Assoc of the Philippines. All rights reserved
10. Cost competitive, almost as much as India, across service segments
One of the lowest cost destinations for English work, and for non-
voice and IT services work
Relatively minimal inflation and currency volatility indicate
continued cost competitiveness in future
Costs
Large, scalable talent pool— Relatively minimal risk
next only to India, China perceptions, primarily
Top-3 global location in directed at geopolitical
graduate pool size concerns
Third-largest talent pool High-quality physical and
in delivery of voice BPO, social infrastructure
F&A, and IT services Favorable investment
Amongst the largest climate
experienced talent pools Limited risks to talent
scalability
Natural disasters in certain
regions and sporadic
Source: Everest experience political incidents are key
concerns