BPO To Grow In Philippines To $25 Billion In Revenue

February 24, 2011

According to an executive of a premiere business process outsourcing firm in the Philippines, the bpo sector is likely to grow in the near future. CEO of Spi Maulik Parekh speculated that the industry’s revenue could very well hit $25 billion toward 2016. 

He was speaking to executives in the industry, when Parekh said that the current forecast is three times the usual $9 billion revenue per year that reels out of the Fhilipino BPO industry.  The BPO sector in the Philippines is expected to record revenues of $124 billion in 2016. That figure is up $45 billion in 2010. 

Among the top competition in the region stems from Vietnam and Malaysia. In order to rise above the rivalry in the region, Parekh is offering higher value services. He highlighted that the nonvoice services will grow 58 percent of the businesses from the present share of 43 percent in 2010. 

The upbeat forecast from Parekh comes despite a move by the U.S. to tax calls received oversees at offshored call centers. The move has yet to be passed by Congress and Senator Charles Schumer of New York who proposed the bill has not received much support to make it into law. The Commission on Information and Communications Technology shares the optimistic outlook. The Commission forecasts the industry will add by 26 percent, even though Western countries will try and block outsourcing to protect their jobs. 

Since 2010, the BPO sector has hired more than 440,000 Filipinos, according to CICT Chairman Ray Anthony Rosax-Chua. He added that more jobs would open up in the near future since many more services that are not outsourced will come to the Philippines

Philippines has been thought to overtake India as the market leader in BPO. However, according to a recent analyst rating, Philippines fell from one of the top positions making way for the top three outsourcers India, China and Malaysia.


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