RP to rise as global BPO powerhouse  – JAZA

The Philippines is poised to become a leading global player in the business process outsourcing (BPO) industry given its highly educated and concentrated workforce and excellent quality of service, Ayala Corp. chairman and chief executive officer Jaime Augusto Zobel de Ayala II said yesterday.

He cited the Philippines’ capacity to become a powerhouse in knowledge process outsourcing (KPO) during the launch yesterday of Integreon’s first facility in the country.

LiveIt Solutions Inc., the holding company for Ayala Corp.’s investments in the BPO sector, acquired a majority interest in Integreon, a global leader in corporate, legal and financial complex KPO, in October 2006.

The Philippines is stepping out of India’s shadow to become a competitive KPO and BPO destination especially with the rising value of the Indian rupee against the dollar. There has been a steady stream of Indian companies setting up shop in the Philippines due to increasing attrition and rising costs of doing business in India.

Zobel de Ayala II noted that the “Philippines is well positioned to gain a significant share of outsourcing service knowledge-intensive businesses” as he sees a rapid growth in the KPO business in the country.

“Our greatest asset is that Filipinos are well educated and have an excellent ability to operate successfully across both multiple cultures and knowledge domains,” he said.

He said that while the Philippine economy is doing well, a slowdown in the US economy would certainly affect export industries. He, however, believes that the BPO sector would continue to grow, albeit on a slower pace.

As proof of its bullishness on the BPO industry, the Ayala Group, through LiveIt plans to expand facilities and acquire more BPOs to expand geographic footprint. “We’re open to the idea of investing more to support our companies and our goal to become one of the leading global players in the BPO sector,” said LiveIt chief executive officer Fred Ayala.

Integreon opened its first Manila office and plans are now underway for the establishment of a second facility still within Metro Manila.

The first facility can house 100 seats while the second facility is expected to accommodate 200 to 250 seats, said Integreon Phils. country manager Joseph Tabuena.

“The Ayala Group is convinced that the time is  right for the Philippines to reposition itself to become a leading global provider o outsourced high-value, professional services,” Zobel de Ayala II said.

With higher education priority, the literacy rate in the country is 95 percent, among the highest as English is taught in all schools, making the Philippines among the world’s largest English-speaking countries. Aside from this, wages in the Philippines are lower than in the US that foreign outsourcing programming and business processes to the Philippines save at least 30 to 40 percent on business costs.

Company officials are also confident that Integreon is poised to gain a significant share of the outsourcing business given its strong track record in delivering the highest levels of quality outsourcing services for the world’s largest financial services institutions, law firms, consultancies, publishing and media companies, and global corporations.

Integreon president Liam Brown said the firm’s presence in the Philippines enhances its ability to seize opportunities in the offshore legal services sector which is expected to grow  to nearly $500 million.

E-Discovery, which involves the process of securing electronic data for litigation purposes and is seen to rise to $3.4 billion within five years, as well as in offshoring research and analytics in banking and financial services, which is forecast to grow to $620 million within five years.

Brown said Integreon expects its revenues to rise by 300 percent this year given the opportunities in the KPO sector.

Aside from Integreon, LiveIt also controls eTelecare, which is its primary investment in customer care.