By: Audrey B.
While outsourcing hubs China and India are currently leading in the outsourcing space, other destinations such as countries in Latin America and Southeast Asia have seen growth in outsourcing business over the past few months. The Philippines in particular, is seeing a number of expansions by outsourcing companies this month alone.
As mentioned in a previous article, U.S. based outsourcing companies, Rainmaker Systems and Convergys (NYSE:CVG), as well as Australian outsourcing company, Salmat, have all announced plans to further expand their workforce in the Philippines. Rainmaker Systems announced on the 1st of September that it will be doubling its Philippine workforce by hiring as much as 1,000 people in the next twelve months. The Philippines is currently Rainmaker’s only Asian site, and cites that it is the supply of skilled workers, and a stable telecommunications infrastructure that appeals to it in building and expanding in the country. On the other hand, Convergys cites “phenomenal growth” among Philippine clients in the last few years as the reason for its expansion plans. According to country manager for Convergys Philippines, Marife Zamora, the company is looking to increase the headcount in the country to 25,000, up from the 22,000 that the company currently employs across the country. Lastly, Salmat, announced that it is expanding its Philippine workforce by 200 people in order to support clients from hometown Australia, as well as neighboring countries’ New Zealand and Japan. It will be providing targeted media solutions, customer contact solutions and business process outsourcing solutions to Salmat clients.
Indian outsourcing companies are also planning on expanding their businesses in the country. Infosys (NASDAQ:INFY) was the first of two Indian companies to announce plans, on the 13th of September, followed by WNS Holdings Ltd (NYSE:WNS) on the 17th of September. Infosys said the company will be doubling its headcount in the country in the next 12 months. According to Ritesh Idnani, Infosys BPO Chief Operating Officer, the company will be expanding into areas such as legal outsourcing and finance and accounting outsourcing in the country, aside from contact center services. WNS Holdings said it will be increasing by as much as 300 people in order to take advantage of the English-speaking workforce. The company’s CEO for WNS Philippines, Prabhakar Bisen cited “growing demand” as the reason, while Keshav Murugesh, WNS CEO, said that, “10 percent of WNS’ work force could be based in the Philippines over the next few years.” Like Infosys, WNS will also be utilizing its Philippine workforce to cater to clients in the finance industry.
While India mulls over its current problems with the U.S. and China, other outsourcing hubs are emerging from India’s shadow. Case in point: the Philippines. One thing that shows in the recent expansions is that companies such as Infosys and WNS, are now looking towards the Philippines for financial services, an area that had once been slated towards India in past years. Will the trend continue? We’ll have to wait and see in the months ahead.
Disclosure: no positions