OFFSHORE DESTINATION: PHILIPPINES

But the Philippines—one of the world’s second-largest English-speaking populations—is fast catching up to India.

With a literacy rate of 94%, the Philippines has a large pool of information technology professionals and a cost-competitive telecoms infrastructure. The country ranks third in Knowledge and Information-based jobs in the 2002 Global Technology Index research done by the META Group. Three million college graduates join the workforce each year, providing a tremendous source of talent.

An American colony for close to 50 years, the Philippines has a Western-influenced culture, a unique trait that clearly distinguishes the country from other offshore destinations. Although Asian in orientation, Filipinos watch American TV and are thus able to communicate effectively in American English.

PHILIPPINES: CALL CENTER HUB

In recent years, the Philippines has become the offshore destination of choice for call center outsourcing, specializing in customer support services. Because of the Filipinos’ high level of English proficiency and strong customer orientation, many leading multinationals have used the Philippines as a global center for customer service. American OnLine, the largest U.S. Internet service provider, maintains a staff of 600 at its call center in Clark, Pampanga. Caltex, Procter & Gamble, Barnes and Noble, among others, have built large-scale service centers in the Philippines.

One very promising industry that has sought outsourcing support in the Philippines is the medical transcription business. The Philippines boasts a large talent pool of medical professionals, including doctors, nurses, and medical technologists. The demand for medical transcription has risen as U.S. hospitals are now required by federal regulations to convert medical records into data format. Seventeen medical transcription companies are now in operation, employing 1,200 Filipinos.