8 steps to BPO Success
by Gretchen O. Recto and Carmen P. Hidalgo

On March 2, US consulting firm Magellan Alliance, speaking on behalf of John Clements Consultants, presented the initial results of a study on the overall potential of the Philippines as a major BPO destination to an SRO crowd at the American Chamber of Commerce. The study, which was commissioned by John Clements, provided much insight into the Business Process Outsourcing (BPO) industry in Asia today. One of the key messages: the Philippines can be promoted as the up-and-coming market for offshore outsourcing.

Data gathered from around the country over the past few months shows that the Philippines is second only to India in terms of outsourcing viability. With a population nearly twice that of fellow contender South Africa, and a newly discovered human resource goldmine of English-speaking provincial cities, the Philippines is in a good spot to seize the day in the phenomenally fast-growing industry of BPO.

Our position, however, is not a guaranteed one. With increasing competition from new countries entering the industry, there are several factors which could cause us to lag behind. Many of these factors are rooted in perceptions—valid or not—that investors have about the country.

Some areas in which the Philippines did not rate well with investors were: country infrastructure, employee retention, and country risk. In response to this, the study suggests that the success of the Philippines as a BPO destination lies in addressing 4 key issues: people, quality of service, marketing, and security. The fourth issue can only be addressed by the government, but the first three are primarily the responsibility of the industry.

With regard to people and quality of service, the secret seems to lie in adopting uniform standards for both schools and business operations. ISO and six sigma certification, for instance, should be a top priority for businesses here.

However, for every misperception, there is always the other side of the story. For instance, it is a commonly held belief that companies choose to come here because the Philippines is a cheap place to do business. Often overlooked is the fact that the Philippines is best-in-class in customer care.

All in all, the results indicate that the future is bright for the Philippines, but that potential must be backed up by action. This can be carried out through an 8-step focused and doable marketing plan for our country:

1. Articulate the Philippines, Inc. brand and its attendant value proposition
2. Influence the influencers
3. Get speaking roles at outsourcing conferences in the U.S.
4. Invite selective members of the media to the Philippines to tell them the exciting story of the Philippines as an up-and-coming technology market
5. Market to the Big Seven global process delivery providers
6. Approach U.S. and U.K. multinationals that have already invested in the Philippines
7. Hire a public relations firm to promote the Philippines, Inc. brand in the U.S.
8. Organize a team of key players on the Filipino BPO scene to execute this marketing game plan

Also helpful would be getting “witnesses” to speak out as models of success in the country. When asked, for instance, why it has continued to invest in the Philippines, one major company answered “Because no matter what, the product gets out on time and within budget – no matter what.”

In the end, as long as we get ourselves organized and get moving, achieving the full offshore outsourcing potential inherent to the Philippines and its talented people is well within our reach.