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  • From just fretting over peso,
    BPOs rising to challenge
     
    By Rizal Raoul Reyes
    Correspondent

    INSTEAD of worrying about the appreciation of the Philippine peso vis-à-vis the US dollar, business-process outsourcing (BPO) executives Tuesday pointed out that marketing the country as a major global-outsourcing hub must top their agenda in order to ensure a stronger foothold in the industry.

    In a forum called “Peso Strength and US Economic Woes” organized by the Business Processing Association of the Philippines (Bpap) and Outsource2Philippines Inc., Convergys country general manager Marife Zamora said her company was unfazed by the steady rise of the value of the peso and instead was focused on building its core competency for more business opportunities. As far as the company is concerned, Zamora said the Philippine office of James Martin is the biggest offshore unit outside the United States.

    Despite a looming recession in the US, Martin is optimistic, according to Zamora, that outsourcing jobs will be sent to the Philippines because it is cheaper while ensuring a high quality of work.

    “The customer-service industry is not a nice-to-know but a need-to-have requirement,” she said at the open forum.

    Convergys Corp. provides integrated-billing, employee-care and customer-care services provided through outsourcing/licensing. Convergys Philippines has a 13,000-strong work force.

    James Donovan, president and chief executive officer of American Data Exchange Corp. (Adec), said the Philippines has all the capabilities to move up the value chain of outsourcing since it has a substantial manpower pool proficient in information technology-related jobs.

    “The Philippines needs to brand itself for the backroom operations since this area tends to have low-key recognition in some quarters,” he said.

    Donovan said BPO companies in the country should also not worry about labor arbitrage but about delivering the requirements for the global market.

    The Rowlett, Texas-based company provides customized outsourcing solutions to clients worldwide in document management and administration solutions; human-resource solutions; analytic solutions; financial solutions; health-care solutions; engineering and computer-aid design solutions; e-learning solutions and help-desk solutions.

    For his part, ePLDT president and chief executive officer Ray C. Espinosa said companies exposed to currency fluctuations must accept this as a reality of life in the industry here and abroad.

    Espinosa said companies must play it smart in handling this situation. One way, according to him, is to veer away from commoditized pricing and move up the value chain by delivering innovative products and services.

    “Outsourcing companies must introduce new management styles and technologies to obtain higher productivity. In this way, they can obtain a substantial cushion when this problem emerges,” he said.

    Meanwhile, Headstrong Philippines country manager Nora Terrado said the government must develop more infrastructure and help reduce the cost of power in the country to entice more investors to come to the country. “The cost of power and building more infrastructure like roads and bridges are important elements to develop outsourcing in the country,” she said.

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