IT-BPO growth to be sustained, to deliver $16B next year
MANILA, Philippines - Major players in the information technology – business process outsourcing (IT-BPO) see the strong growth of the industry being sustained next year with a 20 percent growth in revenues and employment generation.
Business Processing Association of the Philippines (BPAP) sees revenues generated by the industry hitting $16 billion next year or $2.6 billion higher than the projected revenues of $13.6 billion this year.
This would be at par with the expected growth this year from $11 billion last year. In terms of job generation, BPAP expects 926,000 full-time employees next year from about 772,000 this year and 638,000 last year.
BPAP chairman Alfredo Ayala said the country’s IT-BPO industry is making good progress toward achieving the targets under the Roadmap 2016 wherein the industry is expected to register a compounded annual growth rate of 20 percent, hitting $25 billion by 2016 or about 10 percent of $256-billion global IT-BPO market share and 1.3 million direct hires.
Ayala, who is also president and chief executive officer of LiveIt Investments Ltd., said the Philippines is likely to be the preferred choice of both voice and non-voice segments of the IT-BPO industry by 2016.
“We aim to become the world’s number one destination not just for call centers but other select non-voice segments of IT-BPO, generate a total of 4.5 million direct and indirect jobs, and achieve cumulative revenues of $96 billion for 2012-2016,” he stressed.
About 500 delegates from 17 countries are now attending the 4th International Outsourcing Summit (IOS) organized by BPAP. Delegations came from Australia, Bangladesh, Belgium, China, Colombia, Denmark, Greece, India, Japan, Malaysia, Netherlands, Philippines, Singapore, Taiwan, United Kingdom, US, and Vietnam.
BPAP president and chief executive officer Benedict Hernandez said the summit brought a roster of high-level speakers, moderators, and panelists to provide insights and perspectives in a series of panel and breakout sessions
“This year we are doing even better because IOS provides a platform to discuss global industry issues including opportunities and challenges for growth, emerging markets, industry developments, and service expansion,” Hernandez stressed.
He earlier revealed that BPAP is currently reviewing the targets under the industry roadmap to take into consideration major developments in terms of the competitiveness of the Philippines against other countries as well as the foreign exchange rate.
According to research and consultancy firm Everest Group, the global offshore services market is growing at a healthy pace, and will more than double by 2016 to $250 billion. Gartner reports that by 2016, the Asia-Pacific market for BPO excluding Japan would reach $9.5 billion.
Joel Villanueva, director general of the Technical Education and Skills Development Authority (Tesda), said the Aquino administration would ensure a steady pool of talent to be able to achieve the 1.3 million workers needed by the industry by 2016.