Philippines Top Outsourcing Choice by US Firms
The country is the top choice among a growing number of major American companies for business process outsourcing services in finance, technology, telecommunications, consumer products, and accounting, the Department of Foreign Affairs said Tuesday.
In a statement, the DFA quoted Gary Reddick, senior vice president of AIG Worldwide Life Insurance, and Cynthia Houlton, senior analyst of RBC Capital Markets, for their observation during the business networking reception jointly organized by the Business Process Outsourcing Council, the Philippine Consulate General, and the Philippine Trade Office in New York recently.
Reddick, who was main speaker for the event, said his company chose to run a business processing operation in the Philippines because it is “able to leverage AIG’s strong local presence in an environment that is highly conducive to US-focused outsourcing operations.â€ÂÂ
Reddick enumerated the advantages of the Philippines over alternative Asian sites: labor costs equivalent to China; lower and more stable economy compared to India; prevalence of spoken American English; cultural and social affinity with the US; modern and stable infrastructure such as water, power, roads, telecommunications; a large pool of qualified college graduates seeking white-collar employment; access to specialized skills aligned with US professional standards; government support and tax breaks for the industry; and a more hospitable environment for expatriate trainers and managers.
