BPOs capitalize on downturn

MANILA, Philippines—Business process outsourcing firms that provide specialized services are capitalizing on the economic downturn, as companies in the United States search for less expensive alternatives offshore.

“As a cost-cutting measure, more clients tend to ‘shop around’ for medical transcription service providers outside the US. This gives us an advantage as one of the destinations of choice,” said Myla Reyes, president of Total Transcriptions Services Inc.

The US healthcare industry was one of the hardest hit by the global recession, she explained. This prompted industry players to consider outsourcing options that would make their businesses more viable.

Reyes’ company was one of the respondents to a recent survey conducted by the Business Processing Association of the Philippines and Outsource2Philippines, which revealed that back-office services providers were the most affected by the crisis.

Back-office services include data processing, human resource, finance and accounting, document management, claims and transaction processing, editorial, procurement, professional services, research and supply chain management.

Among respondents from the back-office services providers, 63 percent said their companies were very significantly affected by the crisis and another 36 percent said their firms were significantly impacted by the downturn.

The impact of the crisis, however, appeared to be mainly positive, as 60 percent of those polled said their companies were accelerating expansion activities. –Abigail L. Ho, Philippine Daily Inquirer