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Outsourcing is the transfer of work once handled within the company to an outside organization.
There are two main types of outsourcing:
ITO is the transfer of IT functions, like programming or computer maintenance.
BPO is the transfer of business functions, for example, handling customer orders or entering customer data into a computer.
The main reason for outsourcing used to be simply to reduce costs. Today, outsourcing helps to increase shareholder value, if done properly, from two fronts. Firstly, it allows the client to focus on its main strengths. Secondly, the outsourced work is performed by external organizations more specialized at the tasks assigned to them.
There are many reasons why you should consider the Philippines. These include:
Global companies such as AOL and Citibank have already outsourced to the Philippines.
According to A.T. Kearney, 2004 Offshore Location Attractiveness Index, the Philippines ranks third as an outsourcing destination in terms of financial structure.
We will be your partner from start to finish when you consider outsourcing. We will be your access point to the Philippines to maximise the country's outsourcing capabilities. Most importantly, we are located in the UK and will be your single point of contact and have full accountability.
Laws that can provide privacy and data protection are summarised below.
The E-Commerce Law of the Philippines (Republic Act. No. 8792, also known as the Electronic Commerce Act of 2000)
This law legally acknowledges electronic documents and transactions, and defines what is lawful for commercial and non-commercial purposes. It says that:
The Philippine Constitution and Civil Law
Privacy, including privacy of data, is a constitutional right and is recognised in Philippine civil law.
Presidential Decree No. 1718
This decree places restrictions on the transfer of documents and information outside the Philippines.
Bank Secrecy Act, 1995
The Banking Secrecy Act sets out the rules for keeping bank records confidential.
Anti-Wire Tapping Act (Republic Act No. 4200)
Under this Act, it is illegal to intercept or record private communications.
Access Devices Regulation Act of 1998
This Act prohibits unauthorized use of 'Access Devices' (which includes credit cards, account numbers, and electronic serial numbers).
Whilst there is no equivalent of the UK's Data Protection Act in the Philippines, there are moves to bring Philippine data protection laws in line with EU standards.
The UK's DPA was created specifically to help people access the information held about them, and defines good practice principles for those who hold data (known as 'Data Controllers').
It also says that Data Controllers must register with the Information Commissioner's Office
Philippine service providers often develop internal policies to meet the standards of their partners. This approach is similar to the U.S. where privacy rules tend to be market driven and self-regulated.
Intellectual Property rights are governed by Republic Act No. 8293 (The Intellectual Property Code of 1997), which falls under the authority of the Intellectual Property Office. The Code sets out the laws for patents, trademarks and copyrights.
All "original works", including software, databases, manuals and packaging are protected. Multimedia works are also covered by the Code.
The Philippines has also signed the following international treaties on intellectual property:
Those unfamiliar with the Philippines may have concerns or views about the country's political or geological situation. We believe that the best way to answer this question is to mention examples of high-tech companies who have been doing business in the Philippines for many years.
Microchip manufacturing is probably one of the most capital-intensive industries; a single microprocessor plant can cost over a billion Euros. Investors are sure to carefully consider the risks before proceeding.
Intel
Intel has been operating in the country for around 27 years. In 2002 it announced an investment of nearly $100 million (approx. €81.3 million) for Pentium 4 production in its factory near Manila. Only three factories in the world produced Pentium 4 chips, and Intel chose the Philippines to locate one of them.
The company's total investment in the country is around €1 billion.
Some years ago, Craig Barrett, chair of Intel remarked, "We've been here 23 years, we've been through earthquakes, volcano eruptions, coup d'etats, changes in environment, but our product gets shipped in the right quality, and on time."
Texas Instruments
Texas Instruments has operated a factory in the Philippines since 1980 where it builds digital signal processor (DSP) chips. These chips are used in mobile phones, including those produced by Nokia. Each of the 150 million Nokia phones sold in 2001 contained a DSP microprocessor from the Philippine factory, which also supplies 70% of all mobile phone microchips in the world.
Reports of political scandals and kidnappings have been overly sensationalised by the media; however, the Philippines suffer no more scandals than the rest of the countries within the area.
Additionally, Outsourcing in the Philippines is now a big priority to the Philippine Government. Millions of Euros have been invested on improving the country's general infrastructures to accommodate companies coming to the country.
The President, Gloria Macapagal-Arroyo, who spoke at the launching of Philippine e-services in Manila, said her administration is working especially hard to develop the information and communications technology (ICT) sector by helping create an environment best suited to meet the needs and requirements for outsourcing.
"Other things going for us include good infrastructure and competitive rates in telecommunications, availability of real estate, a consultative and customer-service mindset versus a techie-oriented workforce, a strong work ethic and firm government support."
"The country today has energetic ICT industries with areas of great potential that are turning into our nation's niches within the global ICT market."
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