Philippine government unveils new outsourcing plan

20.06.2006
The Philippine government plans to implement "overseas global outsourcing" -- a new marketing strategy that will tap Filipino managers based in the United States to convince American companies to outsource their back office needs here in exchange for financial incentives.

George Kintanar, adviser of the Philippine House of Representatives' committee on ICT (Information and Communications Technology), unveiled the plan on Monday before local government officials and private businessmen at a press conference announcing the 1st ICT Calabarzon Conference on June 29 to 30 at the Tagaytay Convention Center in Tagaytay City.

Kintanar said the plan will be implemented by the Philippine Chamber of Commerce and Industry (PCCI) in joint venture with Filipino-American (Fil-Am) executives and overseas Filipino workers (OFW) in the U.S.

"It's time that we raise the Philippine flag and promote overseas global outsourcing," he said. "If a Fil-Am (Filipino-Americans) or OFW [Overseas Foreign Worker] in the U.S. can convince his CEO [chief executive officer] or manager to do some back office here, then he or she would get a finder's fee."

According to Kintanar, most of the Fil-Ams he met in the U.S. are in the middle management and senior management levels of outsourcing companies. "In fact, the number two guy in the biggest transcription company in the U.S. is a Filipino," he noted.

Kintanar added they would also tap local businessmen, particularly small and medium enterprise (SME) entrepreneurs, to engage in the call center and BPO (business process outsourcing).

"We are not targeting the giant outsourcing companies," he said. "SMEs represent 99 percent of all businesses in the country. And we would welcome them, whether they want to start a 30- or a 50-seater call center."

Kintanar disclosed that the government is planning a roadshow in the U.S. in December, which, among others, will encourage overseas Fil-Ams to do overseas global outsourcing. He said the U.S. continues to be a significant market for outsourcing, as it accounts for more than 50 percent of the global outsourcing market.

Meanwhile, the 1st ICT Calabarzon Conference seeks to promote the region as an alternative ICT center to nearby Metro Manila. The region is composed of the provinces of Cavite, Laguna, Batangas, Rizal and Quezon.