ASEAN KEY DESTINATIONS
South America could get Philippines outsourcing
"Given the bright forecast on the global economy, more outsourcing deals and negotiations will be closed next year," said Lauro Vives, XMG chief analyst, adding that "majority of these contracts are smaller deals and have shorter contract durations."
Vives said South American countries such as Brazil and Mexico-which are nearer to the U.S.-would likely get a bigger share of the outsourcing business.
The US remains the biggest IT-BPO market, and is the Philippines' top source of clients.
"These up-and-coming alternative outsourcing destinations have the potential to have respectable shares in the global market. Latin American countries will collectively post $8-billion total revenue this year which is expected to grow by 19 to 23 percent in 2011," Vives said.
"The distribution of outsourcing investments to different locations is merely a reflection of the new normalcy defined by improved business outlook and maturity of countries to deliver off-shoring services," he said.
Traditional BPO destinations like India, China, Vietnam and the Philippines should be extended greater government support to advance their outsourcing capability and extract larger market share, the XMG analyst said.
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