German companies have a tough time when it comes to brand recognition and geographical awareness in relation to the Philippines, which are the main deterrents to foreign investments, the German chamber of commerce said on Wednesday.
"The first challenge is that German companies don't know where the Philippines is," quipped Nadine Fund, business development manager of the German-Philippine Chamber of Commerce and Industry Inc. (GPCCI).
Fund told GMA News Online that India is the top-of-mind destination for most German companies when it comes to BPO services.
"The Philippines is not really a destination people would think of for business investment," Fund said.
In response to the situation, the GPCCI and the Department of Trade and Industry (DTI) are ramping up efforts to promote the Philippine brand and its potential among firm in Europe — a largely untapped market for Philippine-based BPO companies.
Fund said the DTI representative in Germany is joining business conventions and exhibitions and pushing the Philippines a business destination for German companies.
With a potential market of $40 billion, according to the Business Processing Association of the Philippines (BPAP), the Philippines has no other recourse but to tap the European market, especially since other BPO countries competing for the Philippines largest market, the US.
In 2008, BPO stakeholders established Team Europe — a multi-agency coalition whose objective is to promote Philippines as a BPO destination for European companies.
Potential for BPO industry
Stephanie Weber, business development manager of Team Europe, wrote in a 2008 BPAP publication that the outsourcing boom in Europe holds a huge potential for the Philippine BPO industry.
"Currently 65 percent of the BPO business in the Philippines deals with the United States, in contrast to only 10 percent with Europe," Weber said.
Team Europe is now trying to help improve the situation by inducing awareness among Europeans about the Philippines, Weber said.
The group is also trying to encourage Filipinos to take up courses in European languages, she added.
GPCCI's Fund said there are several European investors who will visit the Philippine later this year to explore business possibilities and interact with potential partners.
Fund said they are also encouraging German makers of solar panel to look at the partnership of First Philec Solar Corp. and SunPower of US as a potential case study for possible partnerships in renewable energy.
Germany is heavily promoting the use of alternative sources of energy after Berlin made a commitment to shut down all nuclear reactors by 2020.
She added that their upcoming Mabuhay Germany exposition next October is also the chamber's way of showing to businesses back in Germany how other companies have succeeded in growing their investments in the Philippines. — VS
