RP and HP Outsourcing Partnership Plan

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Published: 24th September 2010
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HP is leveraging on the vast supply of knowledge workers in growing its outsourcing operations in the country, a top local executive said. HP began its outsourcing operations in the Philippines around 2003 following a long-term services deal with Procter and Gamble. Since then, the client base served by the local delivery center has grown to around 80 companies, according to Noel Mendoza, director of HP's Philippines global delivery center. HP's local delivery center has also grown to more than 1,500 employees. Unlike most Business Process Outsourcing companies present in the country, HP provides higher-value services making the Philippines a strategic partner for the company's global customers.



"BPO typically refers to non-core processes a company is willing to outsource to a provider that would provide these services back to them," Mendoza said, describing the difference between BPO and knowledge process outsourcing (KPO). "KPO can be in the realm of very core processes, things that are very critical to the customer's operations which they entrusts to a strategic partner who will be able to deliver these capabilities for them", he explains. The Philippines have been a Business Process Outsourcing destination for many companies over the past few years and in recent years, the KPO Philippines industry is also growing and looking to be a promising new business niche. KPO is generally known as the more specialized and complex brother of BPO. KPO is basically an industry that caters to the demand for offshore professionals like doctors, lawyers, IT professionals, and writers, among others. BPO companies take pride in process expertise and their ability to efficiently process large volumes while maintaining standards of quality. In knowledge process outsourcing, the goal is more focused on the quality of service and the workforce’s knowledge and expertise. KPO companies usually take care of business processes that require highly skilled workers and professionals from different fields; domain expertise and high-end qualifications are required to fill such positions.



Thus, he noted a closer and more strategic working relationship between HP and its customers, "not so much a vendor-client relationship." The capabilities and skills that the partner must bring forward are higher in terms of intelligence, processing and analytics that go into the delivery of these services to the customer.

The Philippines, he noted, offers a wealth of talent from the supply of graduates every year. Industry rivals IBM and Accenture have also cited building KPO capabilities from out of the Philippines. "I think this has been realized by not only HP but other service companies who see the Philippines as a center to be able to drive KPO capabilities derived from a vast pool of talent with keen focus on customer care," Mendoza said. The presence of HP and its rivals could indicate a maturing outsourcing market in the Philippines. Companies are capitalizing on the country's strength as a call center hub and branching out into non-voice based services.



KPO provides a good career opportunity for graduates who want to be part of the global outsourcing phenomenon. Not only to be part of delivering these capabilities but to be part of a global team working with clients in the US, Europe and Asia Pacific region. Philippines is going the same way the rest of the world outsourcing is growing. The world is becoming very seamless, becoming one big community and that the Filipino is world-class and can participate in this community and be seen as valuable in delivering these services.

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