HE PHILIPPINES remained the seventh most attractive country in the world for offshored jobs, as companies discover competitive labor supply in tier-3 cities, according to a report by consultancy A.T. Kearney.
“India and the Philippines are still top of mind when it comes to offshoring, but the hunt for new talent is now taking companies beyond the capital and major cities to tier 3 locations such as... Bacolod and Iloilo City,” read the 2016 A.T. Kearney Global Services Location Index (GSLI).
The Philippines can complement its traditional business process outsourcing (BPO) skills with the “requisite soft skills that machines cannot replace,” making it “clearly better positioned” than others.
The country retained its 7th place after a total score of 5.88 out of 10. The 55 countries were assessed based on three major categories, with Manila scoring 3.17 on financial attractiveness, 1.43 on people skills and availability, and 1.29 on business environment.
Manila placed behind India (6.96), China (6.49), Malaysia (6.05), Brazil (6), Indonesia (5.99) and Thailand (5.92).
“The Philippines is second only to India as a player in the global outsourcing industry, where it began in contact centers and gradually climbed the value chain to now incorporate most functions in BPO and IT (information technology),” read the report.
Since 2014, the Philippines has improved in infrastructure, environment, and tax and regulatory costs.
The report said “significant” recent offshoring activities include the opening of Accenture’s third delivery center in the country, located in Ilocos, to complement its Manila and Cebu operations.
Convergys and Sutherland are also expanding their Davao contact centers to generate as many as 4,000 new jobs.
The GSLI noted the advantages of tier-3 cities include affordable real estate and available labor with lower cost and attrition rates.
“Many of these cities have a highly developed educational infrastructure, ensuring fresh crops of qualified graduates for the foreseeable future.”
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