Philippine BPO eyes stronger growth

The Philippines continues its strength as one of the global leaders in the business process outsourcing market as the government and industry officials here discussed their plans to boost this sector.

Despite the competition from emerging rivals such as China, Eastern Europe and Latin America, the Philippines still has the advantage because of its competent workforce, cost efficient outsourcing and quality telecommunications infrastructure, The Manila Times quoted a statement by Ray Anthony Roxas-Chua 3rd, an official from the Commission on Information and Communications Technology or CICT.

Roxas added that voice-based services segment continues its growth and represent some two-thirds of the accounts that are serviced in the country. The non-voice segment, which includes information technology and back office services, is also showing even more rapid development.

He also said that based on an Everest Research Institute data, the Philippines accounts for 15 percent of the outsourcing market worldwide and follows top seeds in the market-Canada and India.

Last year, the country's BPO industry recorded a 19-percent growth in terms of employment and revenue. It also aims to grow by 26 percent, or $9-billion revenue, while it targets to increase employment figures by 550,000 to 600,000 by the end of the year.

The country's outsourcing industry eyes a rapid upsurge in business in the first half of 2010 as US demand recovers and as the industry here further diversifies its clientele, said Business Processing Association of the Philippines Executive Director Gigi Virata.

Meanwhile, Australian company Salmat Ltd. announced its expansion in the capital Manila wherein it opened its second facility wherein it would service customers from New Zealand and Australia.

Aside from Salmat, another outsourcing firm StarTek Inc. also announced its expansion with a second facility in a business center here.