Earlier last week, Research Firm Ovum reported that India still leads in the development of KPO (Knowledge Process Outsourcing) along with several notable KPO service locations namely the Philippines, China and Sri Lanka.

What are some examples of KPO services?

Some Examples of KPO Services are:

• Equity, credit and investment Research

• Research and Development

• Legal process outsourcing

• Sophisticated services for health care/ Clinical trial management

• Sophisticated services for publishing

Surprised that the Philippines is one of the named countries? Don’t be… Philippines has recently been recognized as a developing country for KPO. Some main potential pointed out for the Philippines were publishing and health care services. Philippines, slowly but surely is becoming one of the important players in the Knowledge Process Outsourcing industry. As mentioned by Ed Thomas(the Ovum analyst and the author of the report ) said: “A major challenge facing life sciences companies is the growing cost of R&D and, as a result, a growing number of pharma companies are turning to outsourcing and offshoring as ways of reducing these costs…”

This really isn’t a surprise considering that a number of countries emerging in the KPO industry like China, Sri Lanka and Philippines offer quite the potential in terms of providing services. On the other hand, Thomas also added, “The recent emergence of countries such as China, the Philippines and Sri Lanka as viable locations for KPO delivery has been a positive development for vendors, as it has enabled them to begin offering a blend of offshore and nearshore delivery while also giving them access to sizable and previously untapped talent pools,”

Ovum also noted that health care, legal process, animation and publishing outsourcing are emerging as the Philippines’ KPO strengths. With this, the Philippines’ outsourcing industries should take this into account because there are real potentials in these and even though India reigns supreme now, it may only be a matter of time that other countries such as the Philippines to take over their place. After all, the Philippines have taken over the ranks as the world’s call center capital.

The first reason is that the country has a very good infrastructure in place. Buildings are already built in major cities around the country ready to accommodate BPO centers. And to point out, these buildings are built with to follow the international safety standards. So, these buildings are generally safe.

Another reason is that the Filipinos and the Western countries or clients for that matter, have a similarity in cultures. In a sense, the Filipinos have a strong sense of the Western culture. Another important characteristic of Filipinos is that they have above average English capabilities.

Filipinos also are very hard workers. Tasks or jobs are completed on time and with almost perfect accuracy. Work or tasks are done properly and at many times, exceed the expectations of clients.

The most crucial factor to this author’s mind is that Filipinos are Loyal and Honest employees. Since the foreign companies are providing a steady source of income, the Filipino employees always give superior work every day. With this at hand, the foreign companies can properly leverage their businesses in the world market. It’s a win-win situation for both the foreign companies and the Filipino BPO professionals.

The Philippine BPO industry has indeed been successful in the past years. The reasons cited in this article is but a tip of the iceberg of this success. It is hoped that this success be a constant reminder of how good the Filipino worker can be, if provided the proper avenue for him to showcase what he has to the world.

Now, with the reasons stated, it is not a wonder why does the Philippine BPO Industry stand out…

The dimensions of the BPO industry already present in the Philippines include virtual staffing, web development, SEO specialization among other things. One sensitive dimension is security outsourcing.

Security outsourcing is essentially hiring an outside company to handle all aspects of data security for your own organization. This includes social security numbers, credit card numbers and pertinent personal information.

Singapore has long been known as “the keeper of secrets” as it has been the country of choice for this sort of task. This is because Singapore has been the hub of international banks as credit card companies for the last 30 years. Singapore was also considered the most “hi-tech” country in Asia about a decade ago.

But things are definitely changing, especially in terms of Information Technology. And things are changing fast. It can be noticed that Singapore is hiring more Filipino IT experts to manage their data security.

So, it’s just a matter of time before the Philippine BPO industry catches up and becomes the premiere destination for security outsourcing. This is for a number of reasons. First is that the Philippines can be at par with any Western or Asian country in terms of technology development. The manpower in this country is practically more affordable compared to other countries in the world. And the Philippines also produces world class IT experts every year by the thousands. So, what’s not to like?

In summary, the Philippines is becoming a juggernaut in the Information Technology as well as the BPO industry. It isn’t a far-fetched idea that in less than a decade, the Philippines will control more than 50% of the BPO industry worldwide. The wave has just begun. And Western countries are seeing the leverage in acquiring the services of Philippine BPO professionals. It would be fascinating to see what the Philippine BPO industry can do in terms of security outsourcing in the next few years.

These are merely some of the reasons why there are alot of  Philippine Business Outsourcing emergence.

In the BPO industry, the work times are usually at night. People in the BPO industry are working while the rest of the country is sleeping. Most of the times, BPO professionals work during holidays. Many important occasions are missed because of the demands of the work. In call centers, the agents don’t know who they’re talking to. There are times that some of them get harassed by perverts. In the area of customer service, the agents get the brunt of the customers complaints. They get irate customers most of the time. In a sense, they become emotional punching bags. In technical support, agents have to instruct people how to make their gadgets run smoothly. Most of the times, the callers don’t know what they are doing. In other aspects, the demands of the job are also very high. Clients expect high quality output in a short time. Sometimes, they move the deadline to almost impossible time frames.

It is easy to say that the salary is a big factor. Philippine BPO professionals earn anywhere from $250-$700 monthly. That’s more than the average salary of an ordinary office worker. Another easy factor is the job security. There will always be BPO companies ready to hire experienced even non-experienced workers. The BPO industry does not discriminate. People who have 2 years of college education are hired for jobs in the BPO industry as long as they are able to function in the jobs they are hired for.

But if we dig deeper, there are indeed prevailing reasons why Filipinos are attracted to the BPO industry. One very important reason is that there is always an opportunity for career advancement. The Philippine BPO industry is a dynamic institution. If you stay long enough, you will definitely earn your stripes, so to speak, and move up the corporate ladder. Unlike in the other industries where employees stay in their jobs until they retire.

Another reason is that there is an opportunity for advanced learning. This is because technology is evolving fast. So, there will always be new trainings to keep up with the changes in technology. In a sense, in order to be a successful Philippine BPO professional, you have to keep abreast with the latest innovations.

The discipline which is learned from working for foreign corporations is another attraction. The foreign companies demand excellence. This is a challenge Filipinos are gladly taking up everyday.

To end, this “love affair” between Filipinos and the BPO industry is going to be a long one. It’s lie to entities have come together to form a perfect union. What offspring or innovations this union produces is something we all have to watch out for.

About 15-20 years ago, the Philippines ranked as deficient in terms of technological advancement. Again, that was two decades ago. Things have changed dramatically. Before, technology or the personal computer for that matter, was out of reach to the common man. To put it simply, it was very, very expensive. But with the introduction of so many companies producing different computer software and hardware, the prices have reduced steeply. Now, more than 50% of Philippine households have computers, be it the PC or the laptop. Along with this development, the Philippines has become at par with the rest of the world in terms of computer technology.

At approximately the same time, there were only 1 or 2 schools which offered computer education in the country. And it was very expensive to study computers. Things have also changed. Practically every institution in the country has some sort of computer course. Even elementary students are exposed to computers nowadays. With students preferring to study computer courses, the Philippines also has a seemingly endless supply of IT professionals.

In terms of the language barrier, it is virtually non-existent. The medium of instruction in the Philippines is English. So, at a very young age, Filipinos can read, write and of course, understand English. Filipinos also have the tendency to mimic accents quickly. There are times when Western clients would think that they are speaking to a native of their country when speaking with Filipinos over the phone. That’s already a big plus to the Filipino professionals.

The professionalism of Filipinos is something which is known worldwide. Their dedication to their jobs and the pride they take in the quality of their work is something foreign clients are constantly taking into consideration when opening their offices or hiring Filipinos as virtual staff.

To end, the human factor in the Philippine BPO industry is what makes it stand out. To put it simply, Filipino workers are simply some of the best professionals in the world. The BPO centers opening in the Philippines every year is a clear testament.

From being an experimental alternative to India, the Philippines is touted as the next big thing in terms of the BPO industry. The question is how can the Philippines sustain being the next giant in the BPO industry?

The answer lies with one word: DEVELOPMENT. In just a few short years, the Philippines has managed to wiggle its way out of the “technological dark age” to the renaissance of high speed internet and fiber optic technology. To put it simply, the Philippines can match any country in the world in terms of technological advancement. The technology which the country has today is basically the same with Singapore, India and the rest of the Western world.

The next thing to consider is the number of professionals who will man the industry. With about 400,000 graduates each year, about half of which are from IT or IT-related courses, the Philippines could definitely sustain this need.

Another thing is the cost-efficient aspect of the BPO industry in the Philippines. The average salary of IT professionals in the Philippines ranges from about $250-$500. This is definitely lower compared to the salaries in the Western countries. This is because the cost of living in the Philippines is also lower compared to the Western countries.

And most importantly, the language barrier. Filipinos learn English at such a young age. English is the mode of instruction even at the elementary level. So, Filipinos can definitely read, write, understand and most importantly, speak English! The dedication to work and the pride of Filipinos in creating good quality work is another bonus that clients find as an asset and a thing to consider when investing in the Philippines.

In conclusion, the Philippine BPO industry is only emerging. With the baby steps taken, huge results are achieved. It would be fascinating what innovations the Filipinos can come up with in the near future.

To have a basic outlook of this trend, we must first consider what exactly is a BPO? Wikipedia defines Business Process Outsourcing as: a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm.

So in a simple sense, BPO is delegating tasks to offshore companies. India has traditionally been the country of choice for the BPO industry. However, recent drawbacks have forced some companies to pull out of India and look for services elsewhere.

This is where the Philippine BPO advantage comes into play. Filipinos have a neutral accent. This is generally acceptable to US and European clients. As long as the call center agent and the customer understand each other, business will go smoothly. The US and European principals are generally concerned with the accent that call center agents produce. So with the neutral accents of the Filipinos, who also have the tendency to develop the American accent or the Australian or British accent, depending on their account, this is not a problem.

The BPO industry is not limited to call centers. Graphics Designers, Web developers, SEO specialists and Virtual staffing are just some of the dimensions of the BPO industry wherein Filipinos excel. With schools offering wold-class curriculum and training, the Philippines BPO advantage is definitely gaining steam.

Another advantage is that the Philippines has a steady stream of affordable labor. This is because the cost of living is definitely cheaper compared to Western countries. Another reason is that students generally pick Information Technology courses compared to medical or business courses in this country in recent years following the BPO boom.

According to one Australian who hires several Filipinos to work for him offshore: “The Philippines is generally a westernized country.” This is another feature which clients seek when choosing the Philippines as their next destination for BPO.

The Philippines is fast becoming the world leader in terms of the BPO industry. With all the advantages presented, it is no doubt that this industry is here to stay for a long time. And who knows? Maybe in the future, the Philippines might be able to spring forth another offshoot of the BPO industry entirely on its own. It is interesting to see what will happen in the near future.

Nevertheless, the outsourcing focus of Singapore has been on manufacturing. Back in the day, Singapore’s large financial institutions and other businesses would themselves outsource software development projects to nearby countries, such as India and Vietnam. There are now several outsourcing vendors inside of Singapore serving the Singapore market and the Western World.

Furthermore, the tiny island of Singapore is considered one of the most wired countries in the world. Due to its remarkably strong infrastructures and exceptionally favorable business environment, the nation has fared well as an outsourcing location for data center operations and network management. Even though its labor rates are somewhat high, they are still lower than those in the United States. In fact, Singapore recently leapt into first place in the global IT economy rankings surpassing the United States and Sweden. Singapore earned top marks for its free-trade policies and “visionary government.”

If truth be told, Singapore takes security very seriously. Plus they have a strong intellectual property protection. That is why they are one of the world’s strongest economies. In addition, it boasts a well-educated population with a highly skilled workforce and a strong pool of senior managers.

Actually, the State of Singapore is one of the world’s great ports. And it is composed of 26 by 14-mile island of Singapore off the southern tip of the Malay Peninsula plus 40-odd nearby islets. Believe it or not, its old Malay name is called Tumasik, meaning “sea town.” On the other hand, its present name came from the Sanskit words singa and pura, together meaning “Lion City.” Thus, the capital city as well as the island now has this name.

Singapore is connected with mainland Malaysia by a land bridge across the Straits of Johore which can be crossed by either car or train. When you come right down to it, Singapore is exceptionally a smart location for North American businesses to explore though with one admonition which is the cost.

Singapore is just one of the many outsourcing countries, but that doesn’t make them any less compared with the other countries.

As a South East Asian country, Malaysia is inhabited by people of all cultures and languages. These are acting as resources for fetching clients from several Asian nations such as, Japan, South East Asia, Middle East and China.

On the other hand, when it comes to the IT and software industry Malaysia has been recognized as one of the favored destinations for outsourcing, despite the fact that it faces some challenges. Actually, one of the major challenges for the Malaysian outsourcing industry is to rise above constraints with regards to scalability. One of the main concerns for the outsourcing industry in Malaysia is the need to elevate the value chain to offer high value services as opposed to highly commoditized services in IT or BPO.

If truth be told, Malaysia has emerged as one of the leading destinations for outsourcing with five Malaysian companies included in the Global Services 100 list. Backed by world class infrastructure and supportive government bodies, the country has seen an influx of global outsourcing giants like HSBC, Standard Chartered Bank, DHL, Shell, IBM, HP, EDS and CSC, in the recent past.

BPO Outsourcing in Malaysia has become a trend in almost every business house. Malaysia, boasting its multi-lingual advantage, political stability, and sound infrastructure, is prepared to emerge as a regional hub for call centers of high performance over the next few years. Although the market of BPOs is quite huge in Malaysia, it will gain more in the coming years.

Recent reports on the growth of business process outsourcing services all over the world affirm to the point that Malaysia is gradually acquiring new heights in the BPO sector.

The current scenario shows that Malaysia occupies a greater section of the entire industry of call centers all over the world. Talking about the growth of business process outsourcing services in Malaysia, it can be said that this is another third world country, which is making a huge progress since its inception. The KPO services offered in the Malaysian BPO firms are still evolving and yet to grow to reach greater heights in near future. In addition, a substantial portion of IT outsourcing is in the hands of the BPO sector in Malaysia.

At the end of the day, people living in Malaysia have greatly benefited from the call center jobs in this day and age. As one need not have a high educational qualification for joining the BPO. The young graduates of today are generally going for this job. This has even increased the workforce in the call centers everywhere across the world, including Malaysia. Thus, the country has been able to develop its business and it has more to achieve in future.

In the past, India is lord of offshore outsourcing. But given the rising costs, and issues of quality, especially in the voice-based sector, many firms are pulling out and moving the the Philippines.

The offshore outsourcing Philippines takes pride in is top-notch. Cost-effectiveness aside, there are also additional benefits on why offshore outsourcing in Philippines is the best.

First of all, there is a large pool of talented professionals in the country. They are highly-trained and are experts in their respective fields. Companies can then leave the job to them and concentrate more on how to improve its business. Using offshore outsourcing in Philippines would also provide flexibility for client companies in terms of selecting, hiring, and managing the workers.

In addition, Philippines have one of the best access to knowledge-based jobs. IT professionals from the country are considered to be at par with the world’s finest. From web content writers and online marketers to software designers, they have proven themselves to be among the very best.

Language and culture is also not a problem when dealing with US and European clients. As a Spanish and US colony for four decades, Philippines has a very close cultural affinity to foreigners. In fact, it is the most westernized nation in Southeast Asia. Filipinos enjoy many foreign forms of entertainment, like books, magazines, movies, and songs. Given the influence of these media, it is only natural that many of them can speak English well and can relate to the lifestyles and trends of western countries.

Given the above benefits, the offshore outsourcing Philippines is currently engaged in will go further as US and European companies look for better ways to improve their business.