Global BPO: Philippines vs. Malaysia
By: Kathleen Yu | 5/23/2010 9:12:39 PM
Malaysia and the
Philippines are two of the largest outsourcing destinations in
Southeast Asia, both countries competing to achieve higher market
shares in the global
Business Process Outsourcing "BPO"
Hailed as the "2nd top Business Process Outsourcing (BPO)
Destination in the Asia Pacific" by global market intelligence
provider IDC, the Philippine BPO sector has boasted an annual
growth rate of 46% since 2006. Three key Philippine cities were
recently awarded slots on the "Top Ten Asian cities of the future"
by UK-based periodical Financial Times, putting Quezon City at 7th,
Cebu at 8th, and Davao at 10th place.
Convergys Philippines is the largest BPO company in the
country, employing over 22,000 professionals in the local
outsourcing industry. Philippine BPO revenues were up by 19% in
2009, totaling to $7.2 billion. The Philippines is considered the
third largest BPO destination in the world, dominating 15% of
BPO Consultant Gregory Kittelson of
Kittelson and Carpo Consulting, "With low
operational costs and a large number of government-issued tax
incentives, the Philippines is an ideal investment destination for
foreign multinationals and other start-up companies. Foreign
setting up operations in the Philippines
because the Philippine workforce is exceptionally skilled, and
boasts a large number of English-speaking professionals. Filipinos
are also known for their hospitality and friendly manner, which has
earned the country an enviable reputation as one of the prime
outsourcing destinations in the world."
Located south of the Philippines, Malaysia is another prime
outsourcing location in the Southeast Asian region. The country is
home to a number of international BPO companies, like Scicom (MSC)
Bhd, SnT Global Sdn Bhd, and Vsource Asia Bhd.Malaysia offers
unique advantages in government support, human capital,
infrastructure, and domain expertise, which makes it an ideal
destination for start-up BPOs.
Contact centers and BPO companies in Malaysia are growing in
number, mainly because of the Malaysian economy's resiliency in
facing the global economic crisis. The inflation rate in Malaysia
is 2.4%, lower than most Southeast Asian countries.
Bolstered by a change in political leadership, Philippine
BPO is expected to register a 30-40% profit increase for the first
quarter of 2010. The Malaysian economy, on the other hand, will
continue to feel the effects of the 2009 Global Economic Recession,
which has already caused a 2% slump in the country's GDP for the
previous year alone. Although both countries are ideal outsourcing
destinations, the stability of the Philippine economy puts it at a
sharp advantage over less secure Malaysian markets. Whether similar
trends will prevail in the future remains to be seen.
Contact KMC MAG Group for Global BPO: Philippines vs. Malaysia