Indian scandal is Filipino bonanza

With a billion dollar revenue fraud dealing the Indian IT sector a body blow, outsourcing firms in The Philippines are hoping to make capital by getting some of the business from the West.

Leading politician Representative Joseph Santiago said the unravelling of the massive revenue fraud at Satyam Computer Services would dissuade multinational companies from seeking Business Process Outsourcing services in India. He said firms in The Philippines could reap the bonanza with more Western firms diverting business to the Southeast Asian country.

The disclosures about Satyam would "force Western firms to rethink their plans to do new business, or contract out additional back office work to BPO providers based in India," said Santiago.

"The Philippines is in a superb position to capture whatever outsourcing business that India stands to lose on account of Satyam’s troubles," said Santiago, chair of the House of Representatives information and communications technology committee.

Soon after the Mumbai terror attacks too there was speculation in The Philippines that local IT firms would be the beneficiaries of the uncertainties caused by the attacks and security concerns of international corporates.

In recent years, the Philippines has emerged as an outsourcing services hub, but Philippine IT and BPO solution providers do a mere fraction of the business conducted by India. According to Philippine Software Industry Association figures, the country’s IT firms earned $423 million in 2007, up from $200 million in 2005.