Philippines continues as a strong contact center hub

The Philippines continues as a strong and steady contact center hub solutions in the region with US$10.1 million revenue recorded in the first half of 2013, a rise of 10 percent over the same period in 2012, according to IDC’s Asia Pacific collaboration and video tracker.
IDC Asia noted that contact center market ranked the second largest in the unified communication and collaboration (UC&C) space, dominating 28.8% of total revenues in the first half, followed closely behind enterprise telephony (41.0%) and has spearheaded collaboration apps and video conferencing solutions which recorded 22.7% and 7.6% respectively.
In a period when the country has undergone its elections in May 2013, the market has not undergone any slowdown in investments, IDC said.
“Conversely, it has maximized its potential to be the hotbed for many unified communication vendors, driven mainly by several factors behind the impressive growth rates of the Philippines business process outsourcing (BPO) sectors.”
“These include its strong adaptability of human resources, well-educated English speaking workforce, increase availability of commercial hubs, coherent telecommunications infrastructure, deregulation of the telecommunications market as well as tax exemptions incentives.”
As the market has gradually moved to higher-value knowledge process outsourcing services (KPO), IDC Asia expects contact center solutions will continue to gain traction in the country.
Correspondingly, the market  has accelerated the uptake of enterprise telephony, videoconferencing solutions and collaboration apps in a multichannel space, given that BPO service vertical is now the largest  unified communication ‘s revenue contributor which recorded approximately US$9.1 million in the first half of the year.
“The Philippine economy is on a higher growth trajectory and will continue to rise in popularity as a BPO and higher-value services hub. Vendors that have ventured into the contact center space like Avaya, Aspect Software, Altitude Software and Cisco have experienced an astounding growth during 1H13,” says Tan Hwee Xian, Market Analyst at IDC’s Asia-Pacific Communications Group.
“Other unified communication products like enterprise telephony, videoconferencing solutions and collaboration apps have also inched up with a double digit growth rate half-over-half which indicates that Philippines remains a sweet spot for IT investors, effectively countering the effects of a global and regional’s economy slowdown,” said Xian.
According to IDC’s Asia-Pacific forecast,  the Philippines’ unified communications solutions is estimated to hit US$110.3 million in vendor revenues by 2017, a 13% annual growth rate.  
Nevertheless, as cloud and “freemium” app services gradually make inroads into the market, such impact will have greater percussion towards the Philippine unified communication market during the forecast period, including contact center solutions.
For instance, Philippine Long Distance Telephone Co (PLDT), through its corporate enterprise arm PLDT ALPHA Enterprise, has recently launched the country’s first cloud-based contact center service targeting BPO and banking sectors.
With widespread availability of Unified Communications as a Service solutions in the marketplace, IDC is expecting more OpEx-friendly UCaaS offerings to appear in the Philippines market throughout various industries.