MANILA, Philippines -- IT services provider Headstrong wants to expand its operations locally, citing increased awareness of the Philippines as an outsourcing destination among its clients.

Headstrong, based in Washington D.C., provides outsourced application and product development services. It operates global delivery centers in India and Manila, Philippines.

The Manila office forms part of Headstrong’s “distributed model” in which services rendered to a particular client, for example, are managed by several locations, drawing on the expertise from each country.

The Philippines is now taken “very seriously as a quality provider of a range of outsourcing and offshoring services,” said Mark Kim, vice president for Headstrong’s North America operations.

In a statement, the company said increased client interest in the Philippines as well as positive outsourcing trends account for the decision to expand the Manila operations.

The company, however, did not mention any specific investment it would be making in the near-term.

Michael Freiman, a Headstrong engagement principal based in New York, noted that a strong point for the Manila delivery center is customer experience.

Both Headstrong executives agree that long-term and “repeat” client engagements increasingly require more than process experience and domain expertise.

“Close alignment in terms of management perspective and a deep understanding of the client’s business are becoming much more important,” Freiman said.

He added: “Expertise is widely available in many of the tier-two centers around the world, so it is important that tier-one providers differentiate themselves in other ways.”

Kim, meanwhile, said Headstrong is growing at least 40 percent a year. The company reported $155 million in total revenues for 2006.