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IT outsourcing on the rise in the Philippines

The booming global demand for business process outsourcing, particularly in the field of Information Technology, has prompted the Philippines, through state-owned University of the Philippines, to open a new IT training facility. The government recognizes the rising trend in this specific sector of the BPO industry, hence the opening of this new facility in one of the country’s premier learning institutions. IT outsourcing is one of the fast-rising segment in the outsourcing world with more and more foreign companies, particularly in Europe, engaging in this business mainly because to cut on costs. The new UP Information Technology Training Center or UPITTC is a joint project between the University of the Philippines and the Japan International Cooperation Agency (JICA). The training center is aimed specifically to train IT workers for eventual employment in outsourcing companies. This training facility will greatly cut the costs of outsourcing companies because they no longer have to spend on time, space and man hours in training their new recruits. Graduates of UPITTC are expected to be fully equipped and knowledgeable in the field of IT outsourcing.

The training modules that would be used in the center were developed by several groups namely the Philippine Software Industry Association, partner-agencies of JICA and the Electronic Industries Association of the Philippines. Companies with membership in these partner-agencies have agreed to sponsor scholarship grants to UPITTC trainees with the option of hiring these trainees upon graduation. The University of the Philippines invested P5 million for the UPITTC’s first year of operations, with incremental investments of P3.5 millions every year.

The project will initially run as a pilot program, after which based on its performance will be decided if the program will be replicated in other University of the Philippines campuses scattered around the country. With this project, the country aims to harness its local talent and native resources thereby help the nation rise to the global IT challenge.

The business process outsourcing in the country has grown by leaps and bounds. And this growth is expected generate billions of dollars in the years ahead. With many countries competing for the outsourcing requirements of big foreign companies, the Philippines have positioned itself to be one of the leading players in this field. The Philippines, with its acknowledged built-in advantages because of its English-speaking, highly skilled workforce and familiarity with Western cultures because of its historical affinity, has taken steps to capture a greater chunk in this booming world industry.

Aside from call center and back-office related services, another option that the Philippines can take advantage of fully capitalize on is in IT outsourcing or ITO. ITO has shown a wide acceptance in a number of European countries particularly in Germany and also in the United Kingdom, France and from the Scandinavian region. Better margins, greater opportunities and strong revenues are only some of the benefits that can be gained by ITO providers expanding into business process outsourcing. Among the areas cited in the field of BPO are: Front office/customer management, mortgage processing, life policy administration, finance/procurement and human resources services. These outsourcing areas were cited by Ovum, the largest European analyst firm for telecommunication and technology sectors presented in OutsourceWorld.

About the Author: Global Sky is a US owned and operated call center based in the Philippines offering US Quality at Offshore Rates. Find out more about Philippines call centers and call center outsourcing. Also check out our call center services.

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