LogicaCMG opens offshore BPO centre in the Philippines

LogicaCMG is to open a further offshore outsourcing facility in the Philippines focusing on business process outsourcing (BPO) services.

The new centre is due to open later this month in Manila, employing between 200 and 300 staff specialising in HR, finance and accounting BPO as well as application maintenance and support services.

China is a difficult place to do business. Intellectual property rights are very valuable and it is difficult to protect them there.

Martin Blackburn, CEO of global service delivery at LogicaCMG, said the aim is to build the headcount at the Philippines operation up to 3,000 over the next three to five years.

The key reason for locating the new offshore facility in the Philippines is proximity to China, according to Blackburn.

He said: "It gives us a soft-landing to China in the future. China is a difficult place to do business. Intellectual property rights are very valuable and it is difficult to protect them there."

A similar strategy was adopted in recent years by high-tech companies such as Intel who used the Philippines as an initial beach-head in the region ahead of moving into China.

Blackburn said the Philippines also offers a good cultural fit with the West, with strong English language skills.