Philippines Bpo Firms Eye $13 BLN Revenue by 2010

$all $ph $bpo

MANILA, May 16 Asia Pulse - The Philippines business process outsourcing (BPO) industry remains optimistic of hitting its US$12 to $13-billion revenue target by 2010 on the back of strong demand for back office, engineering and design process.

Prospects in the industry are seen to grow brighter, with 50-percent growth every year. The global market is huge, Oscar Saez, chief executive officer of the Business Processing Association of the Philippines (BPAP), told participants of the 29th National Conference of Employers that closed Thursday at the Manila Hotel.

Saez said as the Philippines is positioning to achieve a 10-percent share of the $130-billion global BPO market by 2010, the industry expects to generate 900,000 to 920,000 jobs.

He expressed such optimism despite many challenges industry players face, citing the high recruitment requirements, creating new locations as they expand capacity and sustaining the right business environment.

Saez said they will work with the academe on ways to support the talent needs of the industry.

The biggest challenge for the industry now is recruiting large talent who are English and IT (information technology) proficient, he noted.

To create new locations, Saez underscored the need to promote other cities, aside from Makati, Ortigas, Quezon City and Alabang, which house 60 per cent of the country's BPO firms.

The government, for its part, has to continue ensuring that tax incentives are in place to attract more investors into the industry, he added.

Saez earlier also sought government assistance in addressing the high power cost.

A study proposed the implementation of the peak load pricing of electricity which essentially lowers the electricity rate for night operation of BPOs.

Total revenues generated by the BPO industry reached around $5 billion from just $350 million in 2001.

The Philippines currently stands fourth in terms of industry size, next to Australia, India and China.

(PNA)

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