Cebu sets off to develop high-level outsourcing

Source: China Sourcing
http://en.chinasourcing.org.cn/content2.jsp?id=4881

Information technology consultancy firm Tholons, Inc. has partnered with the Cebu Investment Promotions Center (CIPC) in crafting a road map that will enable Cebu to graduate from being a voice-based outsourcing site into a knowledge process outsourcing (KPO) hub.
A memorandum of understanding between CIPC and Tholons was signed during the Cebu ICT and BPO Conference yesterday to launch the conduct of the study.
KPO services refer to knowledge-intensive work carried out by one company for another that require skills more sophisticated than speech, including research, analytical, financial, legal and engineering services.
"Cebu is basically ripe for this (KPO). It has all the requisites needed for a city to become a KPO hub," Jonathan D. de Luzuriaga, Tholons managing director for Southeast Asia, told BusinessWorld on the sidelines of the annual meeting here.
These requisites include a track record in outsourcing, talent availability and strong support structure, among others. Part of the study would be the conduct of online tests to determine skills available in Cebu and suitability of these talents to KPO.
"We would be needing professionals who would do legal research, analytical services, financial accounting, engineering services and others," said Mr. de Luzuriaga.
The study is estimated to cost over P2 million, which will be financed from various sources, and is targeted to be completed in September this year. By then, industry stakeholders in Cebu will be brought together to form a group that will oversee implementation of the road map.
Joel Mari S. Yu, CIPC managing director, said such a road map would define Cebu’s niche in the KPO industry and match its talent capability with opportunities in the market.
"We need to know exactly what kind of skills are needed, what quantities are required and what the competition is doing," Mr. Yu added.
Cebu, currently the top emerging business process outsourcing (BPO) destination in the world based on Tholons’ survey last year, is expected to join the ranks of emerged outsourcing destinations this year.
Going into KPO services is the next logical step to push the outsourcing sector in Cebu forward, Mr. de Luzuriaga said.
"The global trend is going towards KPO. As technology advances, the need for low-end BPO decreases," he added.
Tholons earlier projected that the KPO market is poised to grow to $17 billion by 2010 from last year’s $3.7 billion, with India capturing the bulk of the market.
Other countries with growing KPO sectors are Northern Ireland and China.
Cebu’s outsourcing sector currently has around 40,000 employees and over 100 locators, about 70% of which are based at Asiatown IT Park.