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The Philippine Voice BPO Advantage

Grace Castillo
Globe Telecom
Agenda
 Globe Telecom: Who We Are, What We Do
 The Philippine Voice BPO Industry
 Typical Voice BPO Set-Up
 Philippine Voice BPO Success Stories
 Summary
Globe Telecom: Who We Are, What We Do
 Globe Telecom is a full-service telecommunications provider in the Philippines,
catering to more than 25.7 million mobile subscribers, 287K broadband
subscribers and over 100,000 businesses.
 Partly owned by SingTel & Ayala Group of Companies

 Globe Business serves all the telecommunications requirements of local and


foreign businesses in the Philippines, small, medium and large businesses from
diverse industries, with key focus on the offshoring and outsourcing industry.
 Globe has its own international gateways, cable landing stations, domestic fiber
backhaul and a national access network (data, fiber, 3G/HSDPA, WiMAX)
 Globe has worked with various O&O players including government to foster an
environment attractive and cost effective for business
The Philippine Voice BPO Industry
 BPOs in the Philippines have been growing at a rapid pace, with an expected growth of 23%
in revenues in 2009, and to grow by as much as 26% in 2010

 Provides work for more than 60% of total manpower employed in the industry today

2008 Breakdown by Employees 2008 Breakdown by Revenue


Animation Animation
Engineering Transcription
Transcription Engineering 2%
3% 2% 3%
5% 4%

Software
Software
10%
9%

Back
Office
Back Contact 14%
Office Center Contact
19% 61% Center
68%

372K Employees 6.1B USD


Did you know that ….
 70% of the total BPO market are serviced by contact centers
 61% of employees are working as contact center agents
 US$ 4.5 B out of US$ 7.5B (est 2009) gross revenues are attributed to contact
centers

 *54% of contact handling activities are done on the phone, followed by email at
18%

 *56% of these calls gets converted to a sale, whether inbound or outbound. The
highest among 5 top offshoring destinations

 *100% of captive centers in the Philippines do it onshore

*Source: Asian Contact Center Industry Benchmarking Report 2008, by Callcentres.net


The Philippine Voice BPO Advantage

What are the advantages of a voice BPO locating in the Philippines?


 Large pool of English-speaking talents at competitive rates*

 Better language skills, with 64% of Filipino call center agents able to speak more
than 2 languages
 Level of accent neutralization is significantly low

 Filipinos take less time to train, thus less cost.

 Strong Government support (income tax holidays, PEZA locations, labor &
training incentives, etc)
 High degree of cultural compatibility
 Aptitude for service
 Good telecommunications infrastructure

*Tholons Report, IOS, Oct 2009


**Kelly Services Report in partnership with ACA Research, Oct 2006
The Underlying Infrastructure

GLOBE’S
LAOAG BALLESTEROS

SAN VICENTE
TUGUEGARAO
Span Protection (Aer&UG)
SFLU
Ballesteros-Tarlac
BAUANG BAGUIO
CAUAYAN

DOMESTIC BACKBONE
SOLANO

TARLAC TARLAC NEW TALAVERA


CABANATUAN
DAU GAPAN
SUBIC
More Nodes means
Nationwide coverage
SFP PLARIDEL
CABALAN MALOLOS
DAU CANERO
DALANDANAN AURORA
DINALUPIHAN
BALANGA
LUBAO
ACACIA
ESPANA
MARIKINA
MANDALUYONG
more coverage
LUZON SDH INNER CORE SAN JUAN PIONEER
ERMITA VALERO

Fully protected with


BINAN
DASMARINAS
BACOOR
CARMONA
PRINZA
Smaller Rings
NASUGBU STO TOMAS
BATANGAS
LIPA2
In S. Luzon
TIAONG

diverse routes
PAGBILAO
PILI
MAMBURAO
LEGASPI

SAN JOSE CALBAYOG Clusters of fiber loops


Additional Protection
100% Owned and
ROXAS
from Telic Phil Network CEBU SDH INNER CORE TACLOBAN
LABOGON TALAMBAN CADIZ ORMOC
TAYUD LAHUG
ILOILO SAN REMIGIO

Maintained by Globe
MEPZA
LAHUG
ONGTIAK BACOLOD
ABACUS LABANGON MAASIN
METROBANK
TALISAY
KANGHA
TALISAY

Serves Next Wave Cities for


KABANGKALAN
NAZARETH BULUA
TAGBILARAN
LAPASAN
KAUSWAGAN
DUMAGUETE
BACONG
DAUIN
BUTUAN
CDO BSC
CDO

BPOs
CDO PROSPERIDAD
CDO SDH INNER CORE OZAMIS
ILIGAN BUNAWAN
IPIL
MALAYBALAY TAGUM

Presence in Tagbilaran
TUNGAWAN PAGADIAN QUEZON
MARAMAG
DAVAO
DAVAO

Notes: ZAMBOANGA CAP BLDG MLANG DAVAO2


DAVAO BSC
OBRERO KORONODAL
Network After Strategy 3 SASA
AGDAO
Telic Phil DAVAO SDH INNER CORE
GENSAN
To HONG KONG TGN-Intra Asia
To Singapore To JAPAN

BALLESTEROS
(Cagayan )
TUGUEGARAO

EAC

APCN2 VALERO

BATANGAS
EXISTING CABLE LANDING
SITE (NASUGBU)

The Underlying Infrastructure –


International cable systems
Globe’s “IP Connectivity”

GLOBAL
AT&T Cogent

Level 3
Globe

AS 4775
Starhub Verizon
AS 18249 DOMESTIC
AS 17894
How are call centers set-up
in the Philippines today?
Typical Call Center Set-Up:
1. Using Traditional PSTN/IGF Voice Connection
Typical Call Center Set-Up:
2. Building Private Networks
Private Networks – Point to Point International leased circuits or
Global MPLS Networks

INTERNATIONAL
PARTNERS
Typical Call Center Set-Up: Private Network

Europe (UK) Europe (UK) Europe (UK)


Latency approx. 270ms Latency approx. 250ms
Latency approx. 260ms

SMW4 TEA ERMC USA


(over-land route) (over-land route)

Singapore Hong
Global Kong Japan
Switch Mega-I Shinagawa

EAC TGN-IA APCN2 EAC C2C TGN-IA EAC TGN-IA

Philippines VALERO
Typical Call Center Set-Up:
3. Managed Voice Service
Typical Call Center Set-Up:
3. Managed Voice Service

•Turn-key managed voice solution including, local access, international leg, switching and multiplexing,
international PoP with PSTN termination and aggregation services
•Pay-per-use model with full scalability
•Works with existing call center equipment
•Fully managed service
•On-Demand Traffic Reporting
•Industry leading SLAs
Option for Managed Services
 Managed PBX
 Hosted Contact Center
 Integrated multi-vendor solution

Benefits
 Vendor – agnostic

 Flexible business models – can be capex or opex model

 With After sales support after warranty

 Scalable offer – expand when you need it

 Obsolescence-free as you don’t carry the depreciation and can upgrade after
contract without baggage
Revolution in Communications Architecture – Integrated
multivendor solution

Collaboration
Apps Data Centers Apps
Video
Avaya Integrated
Avaya Apps
New York Business Aura
New York
Apps
SIP
Trunking

Avaya
Aura
Enterprise
Contact Center Network Contact Center
Chicago Chicago

Cisco Cisco
Rome
Rome

Avaya Avaya
London Contact Center Contact Center
Mumbai Users London
Nortel Siemens anywhere Nortel Mumbai
Hong Kong Frankfurt
Siemens
Hong Kong Frankfurt

Flexibly connect users, applications and systems enterprise-wide


Case Study : Transcom
 Established 1995
 The largest geographic footprint in Europe
 Over 23,000 employees serving customers in 33
languages
 Delivering services from 75 centres in 29
countries
 Net sales up 5.4% in 2008 to 631.8 M€
(599.2M €)
 24% average annual revenue growth since 1999
 Listed at the OMX Nordic Exchange.
 Main shareholder: the Swedish investment
group Kinnevik (Europe’s 8th largest
investment company)
Global Footprint

 Europe
United Kingdom Lithuania
Spain Croatia
Germany Portugal
France Norway
Italy Czech Republic
Sweden Netherlands
Denmark Estonia
Switzerland Poland
Austria Belgium
Hungary Serbia
Romania Latvia
 North America
Canada U.S.A
 South America
Chile Argentina
 Asia
Philippines China (2009)
 Africa
Tunisia
Transcom North
St. Catharine’s America
Ontario
UK
Gateway
Ontario
Gateway
MPLS Transcom Asia -
Manila
its
ATM Circu

Transcom Asia
- UK UK Transcom
Home Agents
Manila
Gateway

Network Solution MANILA

-Dual ATM links from Canada to Manila, and Dual MPLS access to our UK
switch
-Load balanced with seamless failover in the event on link goes down
-Redundant design with different local carriers both ends, landing stations,
local exchange, building access, etc
-Carries both voice and data traffic
-3 Class of Services categories with Voice prioritized, critical system traffic
2nd , and non critical traffic in the 3rd class.

Transcom North America & Asia Network Diagram


Case Study : Sutherland

 23 Years of BPO experience


 Present in 7 countries: Headquartered in the US, biggest in India,

Philippines, Nicaragua, Bulgaria, Canada, Mexico


 with more than 26,000 employees

 7 centers in 5 geographic locations in the Philippines

 More than 9,000 in the Philippines

 BPO Integrated Solutions

 Finance & Accounting

 Insurance

 Information & Technology

 Retail

 Telecommunications
SUTHERLAND’S VOICE NETWORK
In Summary…
 The Philippine continues to be the preferred Voice-BPO destination because
 Abundant & reliable talent

 Competitive rates

 Strong support from local industry & Government

 Good infrastructure

 Contact Centers in the Philippines already have a number of options to connect to the world
 Via Traditional PSTN

 Via Private Network

 Via Managed Voice Services

 Service Providers are continuously working on finding new technology to improve


connectivity and voice quality, to enable the BPO industry serve their clients the best way
possible
Thank You

Grace J. Castillo
Head, Enterprise Sales
Email: cjcastillo@globetel.com.ph
Phone: +632 7978008
Mobile: +63917 7978008

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