There are many reasons that the Philippines would be a natural choice to expand call center operations, including access to their highly educated and eager workforce, the ease of business transition, including numerous favorable tax breaks, and the ever-increasing growth of the industry in the country. Therefore, now is the time to move our call center operations to the Philippines so that we may take advantage of these, and many more, benefits. Background
When one thinks about the Philippines, many images may be conjured up, including a tropical Asian location close to the equator, military base operations, and small fishing and agricultural villages. One does not necessarily think about the larger, more metropolitan areas that seem to favor those that thrive in the western hemisphere, or even in more developed Asian countries. Metropolitan Manila, with a population of approximately 20 million, is considered one of the most densely populated metropolitan areas in the world. It is a mixture of new world technology and advancement but still claims the charm and culture that makes it distinctly Manila, with beautiful churches and Spanish-influenced architecture. Today’s Economic Picture
Today’s economy is a comprised of service, industry, and agriculture. The economy has transitioned from one of agriculture to more of manufacturing or services. Agriculture currently contributes about 15% of the gross domestic product. The industrial sector of the country bolsters approximately 30% of the gross domestic product, while the services sector contributes approximately 55% of the gross domestic product (“Economy of the Philippines.”). The main industries in the Philippines include clothing and clothing products, food, beverages, small appliances, and electronics. The Business Process Outsourcing (BPO) industry accounts for approximately 15% of its total industry and has contributed about $9 billion in revenue for the country per year (“Call Center Industry of the Philippines”). One of the main issues that has snarled growth beyond today’s figures include the lack of infrastructure to rural areas, although the government has been diligently working to ensure that those smaller towns will have the infrastructure needed for growth, and the bureaucratic red tape that seems to hamper any business development through corruption.
The Philippines has done so well in the last few years largely because of the election of their current president, President Benigno Aquino III, who was elected to office in June of 2010. One platform of his presidency has been to eradicate the presence of the “wang-wang” culture that has plagued the Filipino people for the last few decades. He coined the term “wang-wang” as slang for the corruption that has seemed to dominate both the business and political world and has caused much bureaucracy and lack of growth, and was derived from the perceived sound a siren on a police car or ambulance makes to the Filipino ear (“No more Culture of Wang-wang, Aquino Vows.”). The corruption stemmed from both political and economic factions and has been seen in everything from election tampering and bribery to halted growth on certain projects because it has not been in the “interest” of the corrupt politician. The president has made a big focus to ensure that the perception of the Philippines is one of dynamic growth by eradicating that corruption because he believes that the country is losing business or driving up the cost of doing business in the country. If they can eradicate the corruption in the country, the president believes that more firms will want to do business there. It seems to be working, as there has been some exciting news during the annual competitiveness survey given by the World Economic Forum. The Philippines has risen 10 spots from 85 to 75 in one year (from 2010 to 2011) (Dumlao). The implications are numerous, including the idea that many global communities see the...
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