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Industry Research : BPO Firm’s Answer to US Insourcing: Tap Local Market

An outsourcing company is targeting the local market for its expansion.

Lorelie Cadiz, Aegis PeopleSupport Inc. senior marketing manager, said the Anti-Outsourcing Bill pending in the United States congress will not affect the firm’s global operations.

"Philippine industry leaders, however, expect a slowdown in US-based companies," said Cadiz.

She said Aegis is focused on the overall outsourcing market rather than the off-shore market in the Philippines and the rest of their Asia Pacific operations as it serves local and international clients in the region.

"For the Philippines, some of the largest companies in the banking, telecommunications and travel industries, however, a large percentage of their revenues come from international clients, majority of which are US-based. How is this bill going to impact our Philippine operations and what contingencies do we have in place?" Cadiz asked.

Business Model

Cadiz cited the firm’s business model, which according to their managing director Aparup Sengupta, revolved around "citizens serving citizens."

"This is true in our Philippine operations. In each geography in where we operate, Aegis serves local customers through local citizens. We have over 5,000 people in Argentina, over 2,000 in Australia, almost 2,000 in South Africa. We have local accounts and part of our growth plans this year is to grow our existing local accounts and acquire new business," said Cadiz.

Cadiz, declined to give more details about their expansion plans in the local market.

She said that the firm would be more bullish here to slowly shift businesses toward areas projected as next growth economies in the world.

N-11 Economies

Recently, investment bank Goldman Sachs dubbed the Philippines among the N-11 or Next 11 economies that will contribute greatly to global growth within the decade and will likely advance to "growth countries" accounting for at least 1 percent of global gross domestic product (GDP).

Aside from the Philippines, other countries such as Mexico, Korea, Indonesia, Turkey, Iran, Egypt, Nigeria, Bangladesh, Pakistan and Vietnam are among the N-11 countries.

The nine economies from the N-11, along with Brazil, Russia, India and China (BRICs) are expected to contribute the most to global growth from 2011 to 2020.

Without a Fight

US House Bill 3596 or the Call Center and Consumer Protection Act recently caused a stir among many stakeholders not only in the Philippines but other countries, like India, which have booming outsourcing industries.

Executives and business group leaders in Cebu, however, said they believe that the bill won’t prosper because American companies that outsource their operations won’t just agree without a fight.

"It’s the means to global competitiveness. They cannot just say yes to that (bill)," said Cebu Investments and Promotions Center managing director Joel Mari Yu.

Nevertheless, Cadiz said that it is always important to look for new opportunities in other areas and diversify the business so as not to be dependent on a single large market.

Posted by Veronica Silva Cusi, news correspondent
Source: http://newsinfo.inquirer.net

Today's Tip of the Day - Keep Cost In Perspective

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Published: Monday, January 16, 2012

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