John Clements Holds BPO Forum for Filipino Expats
by Paul Catiang

December 22, 2006—Three days before Christmas, John Clements hosted a business forum designed to educate and inform Filipino expatriates about the growing business process outsourcing (BPO) industry in the Philippines, the opportunities available in the industry, and what unique challenges outsourcing faces.

Guest speakers were Mitch Locsin, Executive Director for the Business Processing Association of the Philippines (BPA/P); Susheel Bhasin, Site Director of Dell International Services; Dan Reyes, Country Manager of ClientLogic and President of the BPA/P; and Fred Ayala, CEO of LiveIt Solutions, Inc.

Mr. Locsin provided the overview from the perspective of the BPA/P.

An association led by the private sector and comprised of six representative segments of the business process outsourcing and IT-enabled services industries, the Business Processing Association of the Philippines (BPA/P) serves as a one-stop information and advocacy gateway for the industry and its support sub-sectors. The BPA/P was created to provide one point of contact with the rest of the world, and currently has 144 company members and four association members.

According to Mr. Locsin, the Board of Investments (BoI), the Commission on Information and Communications Technology (CICT), and the BPA/P have projected that the total outsourcing workforce will grow to over one million professionals across all fields and sub-sectors, generating over US$ 12 million in revenues. They also expect expansion into the provinces, citing locations like Iloilo, Bacolod, Cagayan de Oro, Lipa, Naga, Legaspi, Tacloban and Subic.

The BPA/P’s current agenda is sevenfold. First, the association is advocating human resources development by encouraging the return of English as a medium of instruction to enhance the workforce’s potential to serve in the industry. This is currently being undertaken through partnerships with the government, several media channels and American and European chambers of commerce. Second, the BPA/P is working towards encouraging the adoption of international data security guidelines; while all outsourcing operations in the Philippines have their own security standards, the BPA/P aims to standardize these security practices to better market the Philippines as a safe and secure location for companies looking to outsource here. Third is the standardizing of incentives from the Philippine Economic Zone Authority and the Board of Investments, as well as the additional local government incentives. Fourth is the boosting of the Philippines’ infrastructure, both for telecommunications and real estate requirements. Fifth, the BPA/P is establishing partnerships with other associations abroad, like with the National Software and Services Commission (NASSCOM) in India and with the American Telecommunications Association (ATA) in the US. Sixth, the BPA/P has been tasked to market the Philippine ITES-BPO industry to the UK, Australia and Canada in 2006. Lastly, the BPA/P has undertaken a five-year roadmap for the industry with research firm McKinsey & Co. to determine the best directions in which the industry may grow. The BPA/P also expects to complete its compilation of the Philippine Database with the study and projections of supply and demand through this project.

Mr. Locsin concluded his presentation with an enumeration of the opportunities and challenges the industry faces these days. Firstly, the industry needs to beef up its manpower resources, quality certification and security compliance, all of which are being addressed and are in the final stages of implementation. Secondly, the BPA/P sees opportunities in the finance and accounting sub-sector, given that 28 percent of Philippine graduates come from Business Administration and other related courses, making them more than ready to take the available positions in the sub-sector. Thirdly, the Philippines can now move up the value chain of outsourcing to provide high value-added services in Knowledge Process Outsourcing.

Mr. Susheel Bhasin, Site Director for Dell’s Quezon City operations, gave a brief overview of his company’s operations, both on the manufacturing side and the customer support side.

Founded in 1984 by Michael Dell, the company describes itself as “a growing, global leader that brings local benefits to customers and communities.” Dell operates out of several global manufacturing sites in the United States, Ireland, Malaysia, China and Brazil, and employs approximately 75,000 people worldwide.

Dell’s famous Direct Model combines several elements. By establishing direct relationships, Dell provides a single point of accountability, seeks the most efficient path to the customer, and builds only to order, which streamlines the company’s operations for maximum efficiency. This is combined with providing the best customer experience, which includes giving the best value, the highest quality and most relevant technology, and customized systems.

Part of providing the best customer experience is tailored service and support. Dell’s customer support services come in here, giving customers an easy point of contact and aiming for a first-time fix. It is within this framework that Mr. Bhasin gave the attendees a clearer idea of what Dell does in their day-to-day operations.

Mr. Bhasin addressed the concern that call center jobs are dead ends. Because of the complex nature of Dell’s business, the company has several options for advancement and offers its employees a clear career path.

He also emphasized that Dell call centers use the same quality-cost-productivity balance used in its manufacturing operations. As a fast-paced company, Dell recognizes the challenges its employees face and has, over the years, developed methods to balance out its people with quality, cost, and process.

On the subject of leadership, Mr. Bhasin underscored Dell’s need for leaders who can inspire people and forge them into high-performance teams is crucial for a company as fast paced as Dell. Operational rigor is also needed; Dell operates on tight schedules, and its employees—especially its leaders—learn to deliver on commitments and to aim for results.

Lastly, dealing with ambiguity is a constant in Dell; leaders who react quickly and effectively to industry demands and changes are highly prized by Dell. The company also encourages innovation; “Since we own the process, we own improving it,” is the maxim used. Lastly, Dell values winning. Employees are encouraged to have a passion for winning, which will drive them forward in their careers in the company.