IT Outsource to the Philippines

Information and communications technology (ICT) investors in the Philippines enjoy fiscal incentives, including tax holidays, support for business financing, and exemption from duties and taxes on imported business-related materials and equipment. Perhaps the biggest benefit of choosing the Philippines for outsourcing, however, is the Filipino people. The country has an overall literacy rate of 95 percent and produces over 400,000 college graduates a year. English is one of two official languages in the Philippines and is taught in the schools. Further, Filipinos are service-oriented, and whether working in a call center or on a back office task, their aim is to please.

For years, technology companies have outsourced the testing and assembly of electronic products. The next logical step is to move information technology development and support offshore. Outsourcing IT makes sense for a number of different reasons. It brings down the overall cost of development, testing, production, and customer support; it allows a company to tap into a new workforce, brimming with new and exciting ideas; and it can have a very positive and significant impact on customer satisfaction and on the way your company interacts with your clients.

The Philippines is a great location for outsourcing call center support and Internet software development services. The reasons are twofold. First, the country has recently made major infrastructure improvements, including the creation of a Cyber-Corridor, which stretches for 600 miles between Baguio to Zamboanga. The country now boasts international connectivity and high-quality bandwidth, and the deregulation of the telecommunications industry means a significant decline in the cost of telecom service. Second, the Philippines produces more than 400,000 college graduates every year. Of these, nearly a quarter are in IT, computer science, and engineering.

There are currently about 300 software development firms in the Philippines. The country's offshore outsourcing IT services include software customization, prototyping, installation, training, programming, testing, and more.

The country has a long history of software development outsourcing, which began more than twenty years ago when Accenture started its Global Resource Center. In 1986, the Center employed 12 individuals. It has since grown to more than 7,000 IT professionals. The Center's establishment heralded a major expansion in the IT outsource service sector, which now includes a major shared-services subsector, as well as an independent software development subsector.

In addition to personal computer, database, and Internet software development services, the Philippines, of course, also has much to offer in the form of computer and software support. The country has a strong call center and back office outsourcing sector that can serve any company's technical and product contact services for its customers.

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