Wednesday, 7 April 2010

RP is No. 2 outsourcing nation in the world

Manila Bulletin

Although the Philippines remains largely unknown to many global clients, it was the Number 2 offshore outsourcing nation in the world next to India while the National Capital Region (NCR) of Manila ranked number 4 among outsourcing cities after Bangalore, Delhi and Mumbai, confirmed the 2009 Global Services/Tholons Top 50 Emerging Outsourcing Cities report.

While the Philippines has only a tenth of India’s population, it has taken 15 percent of the offshore Business Process Outsourcing (BPO) market, just under one third of India’s offshore BPO market.

Even as businesses reeled from the global recession, the country’s BPO sector has continued to post double digit growth every year, stressed Business Processing Association of the Philippines (BPAP) CEO and President Oscar Sanez. “We have seen the strength and resilience of this industry despite the crisis.”

Last year, the contact center sector grew 20 per cent in revenues versus its 14 per cent growth in 2008. Overall, the BPO industry grew 19 per cent and hauled in $7 Billion revenues. “We are employing 442,000 people, of whom 70,000 entered the workforce in 2009. The industry currently contributes to 5 per cent of the Philippines Gross Domestic Product.”

For 2010, the BPO sector targets 26 per cent growth and projects revenues will total $9.5 Billion, according to the BPAP President. “We are back to our ratio of conducting three to four investor meetings a week. Some of those we win, some we don’t, but overall, we have seen the opening of many delivery centers last year. Now, there’s a surge of new inquiries about the Philippines.”

Significantly, investors believe that the BPO industry is “part of the solution to the crisis”, he underscored. “Many of them, under pressure to reduce their cost structure, have considered outsourcing and offshoring to boost their competitiveness.”

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