By: Administrator | 1/7/2009 1:52:45 AM
Growth prospects for the business process outsourcing (BPO)
industry remain bright despite a general slowdown in the global
In fact, the industry is right on track in achieving its revenue target of $7 billion for 2008 and $12 to $13 billion by 2010, according to the Business Processing Association of the Philippines (BPAP).
BPAP chief executive Oscar Sañez noted that in order to hit the 2010 target, which translates to a 10 percent share of the total projected global industry revenue pie, the Philippine BPO sector needs to grow by an average 40 percent annually. He said the country has steadily met this requirement in the past three years.
The BPAP expects an industry growth of 35 to 40 percent this year.
Sañez said the Philippines continues to have an advantage as more companies overseas transfer their operations here to save money.
"Existing clients and potential clients are looking for bigger cost-saving solutions, and the Philippines has become a very good option, next to India," he said.
To ensure growth, the BPO sector has been moving away from the saturated Metro Manila sphere, diversifying into other provinces such as Cebu, Bacolod, Iloilo, Davao and Cagayan De Oro.
The local BPO sector currently has a portfolio of about 450,000 seats compared to less than 1,000 in 2005. Sañez said they hope to increase this number exponentially by 2010, by securing partnerships with both the public and private sectors.
"The BPAP is now all about partnerships, to get stakeholders in the private sector and government to be prepared for the expected demand so that when the companies come here, we will be ready for them."
Contact KMC MAG Group for RP's BPO industry to grow despite economic downturn: exec