Wednesday, 17 June 2009

Philippine BPO sector on track for $7.5-B target

Manila Bulletin

The global crisis has dampened demand for Business Process Outsourcing (BPO) services in the country but not enough to dramatically slow down expansion.

The industry still expects to haul in $7.5 billion this year, growing 23 percent over 2008, and achieve its $12 billion original target by 2011, Business Processing Association of the Philippines (BPAP) CEO Oscar Sañez told the group’s executive breakfast briefing in Makati yesterday.

Although 83 percent of executives who responded to a recent O2P-BPA/P survey admitted that the global economic crisis affected them, 49 percent declared their firms will expand headcount this year by at least 11 percent and up to 200 percent.

A little over half, 51 percent of respondents, are expanding headcount conservatively up to 10 percent, retaining their current headcount, or de-creasing the size of their workforces.

BPA/P and O2P conducted the survey online, with the support of TeamAsia, from March 31 to April 29, 2009. They sent questionnaires to 571 BPO executives, of which 160 answered, providing a 28 percent response rate.

The respondents represented 25 BPO sectors from advertising services and legal knowledge process outsourcing to software development. A good portion, 38 percent, operate more than one BPO facility in the Philippines in more than 35 tier-one, tier-two, and tier-three urban areas.

In terms of headcount, 40 per cent of respondents employed less than 500 workers while most, or 60 percent, have 501 to more than 15,000. Some 21 percent of the respondents employ over 1,000.

Significantly, only six percent of survey respondents announced they will decrease the size of their workforces this year.

“Although the industry has been growing rapidly for several years, almost 40 percent of respondents indicated that their firms will still grow between 16 percent and 200 percent this year,” Sañez pointed out.

1 comment:

  1. you article is timely. I am seeing new employees and continues hiring now. I think we are back on business.

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