From the global outsourcing market with the Philippines continually betting on the revenues and jobs, forecasting a growth rate for this year of 20 to 30 percent. The country then needs to refocus its promotion direction to a new markets like Europe especially with main client, the United States increasing protectionist moves. The President of the US announced that his plans to end the tax breaks for US firms expanding overseas as part of fixing a broken tax system saying that it aims to save American taxpayers $210 billion over the next ten years and to generate more jobs in the country. For the American multinational firms whose major competitive strategy is to outsource, the announcement caused concerns. Both the Business Processing Association of the Philippines and India dismissed the threat. With the 10 percent of its workforce in Asia, the BusinessWeek reported that the major US financial firms including Citigroup Inc. with 60 percent of its workforce abroad and JPMorgan Chase and Co.
The commission on the Information and Communications Technology commissioners told times that companies will continue to move jobs to places where they can be done. The commissioner also mentioned that CICT has anticipated the US move and have started focusing their promotions to a new markets like Europe where demand is high. The new market outsourcing demand, labor sourcing adviser TPI Managing Director Aitchison noted that Europe has shown an increase in outsourcing activities. In 2004, it has accounted for 49 percent of the major outsourcing activities of the major outsourcing contracts worldwide. The Europe has realized that the outsourcing is the key to remain competitive on a global scale. The UK signed a total of €11.5 billion outsourcing contracts. The German companies awarded €7 billion of the outsourcing contracts in 2005. Europe signed outsourcing deals which amounted to $40.9 billion which was even higher than America’s $26.6 billion.
More European countries will outsource, the prediction are strong that with the tough times. The BBC also reported that the 30 percent of the European companies intend to outsource some of its operation. The Gartner forecast that IT outsourcing in Europe will reach $90.9 billion in 2009. In the European firms outsourcing in the Philippines, with the Philippines years of the tested credibility in offering a high quality service at the competitive rates through the outsourcing, several major European companies that have already started to outsourced in the country.
REFERENCE:
http://www.blog.infinit-o.com/philippine-outsourcing-targets-europe/
