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The Philippines – The Outsourcing Destination

If you are in the BPO sector, you are sure to remember in 2004 when the Almighty Dell made a major announcement that they would be withdrawing a thousand jobs from India back to the United States due to quality issues. What most people did not know is that during this period, this world class company (Dell) increased the amount of jobs in the Philippines by more than a thousand.

Back in 2005, Dell also made an announcement that it would be expanding its commitment to the Philippines by setting-up a couple of captive centers and would also keep a large number of its current 3rd party business relationships too. The company chose the Philippines for its new client/customer contact centers because of the really strong communication and language skills of its top notch labor force. On the company's website they stated;

"English-savvy population, about 100 similar facilities in place and 650,000 students, the Philippines is fast becoming the contact center location of choice in Southeast Asia."

Another big IT provider; RCG Information Technology's Managing Director also has something to say about outsourcing in the Philippines.  Much more outspoken that a lot of people; Rick McGonegal made it quite clear that India will not be part of his organization's preparation for the foreseeable future. RCG Information Technology already has a pretty powerful offshore presence in the Philippines and has considered the region of Asia Pacific for future expansion. He feels that India is a country that is already too crammed full, with different companies all rushing to hire from one another. This has resulted in annoyingly high employee turnover rates, increasing salary expenses and poor quality English communication skills in comparison with what is available in the Philippines. The Managing Director also mentioned the over stretched infrastructure the country (India) as another reason why RCG would no longer consider this well known outsourcing destination. The ever outspoken McGonegal , also said his company also has its sights set on China and Vietnam should its best alternative of the Philippines give way.

There is absolutely no doubt that the Philippines is the new outsourcing destination. This is because better quality workers are more available in this country. Filipinos speak better English, are more culturally attuned to western culture, and are known to provide better customer service.  While India's first class educational institutions are known to produce quality technical people, the Philippines' well rounded liberal arts educational programs are much more ideal for opportunities in back office processes. 

I have worked with Filipinos for a really long time and I can tell you for a fact that they are not only hard working people, they are also ready to learn and are concerned about delivering quality service. No wonder the Philippines is the new outsourcing destination.

Daven Michaels is an award-winning outsourcer and author of  the book, ‘Outsource This!’ Daven has been honored more than  any other individual or outsourcing organization. You can get  more information on outsourcing by visiting


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