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Nonvoice Sector Boosts RP IT-BPO Growth by 26%
Monday, April 11, 2011
The Business Processing Association of the Philippines (BPAP), in association with several partner associations, reported that the Philippines’ information technology and business process outsourcing (IT-BPO) industry saw a rise of 26 percent in 2010 with the help of the nonvoice sector. Overall revenues reached $8.9 billion.
By the end of 2010, the outsourcing sector employed a total of 525,000 professionals and skilled workers—a 24 percent growth in employment from the end of 2009.
“We achieved robust growth in all major sectors of the industry: voice-based BPO, non-voice business support and complex services, and information technology,” BPAP chairman Alfredo Ayala stated. “Our contact-center sector grew over 20 percent in 2010, overtaking India and establishing itself as the largest in the world on the back of the Philippines being recognized as the most-preferred destination in the world for these services,” he added, illustrating that the industry both grew and branched out.
Ayala further reported, “The numbers also show that our non-voice BPO sector . . . grew fastest at an impressive rate of 30 percent in 2010 . . . We now employ more than 100,000 professionals in this sub-sector—with many of these BPO employees coming from financial and accounting, legal, and medical sciences backgrounds.”
With the exception of engineering services outsourcing (ESO), all sectors relayed positive growth figures for revenues and employment.
“The Philippines now leads the world in voice-based customer service,” stated Benedict Hernandez, president of Contact Center Association of the Philippines (CCAP). “We have solidified our global leading position with our agents providing the best customer service in the world. Confidence in our voice-based capabilities not only continues to drive market growth but also range of high-value services delivered out of the Philippines in areas such as financial services, marketing and research, and health care.”
The contact center sector rose 21 percent to $6.1 billion from 344,000 employees, a 23 percent increase from 2009.
“The industry data for 2010 proves that the Philippines leads the world in voice-based BPO services and is second only to India for total BPO exports,” reported Ivan John Enrile Uy, chairman of the Commission on Information and Communications Technology (CICT). “We have also proven true the analyses by third-party research institutions that the Philippines is already an established player in non-voice IT-BPO services and a very capable provider of high-value, complex knowledge-based and creative services.”
The funding for BPAP’s Philippine IT-BPO Road Map 2011–2016 was provided by the CICT. The road map foresees the industry’s baseline growth being about 15 percent per year for the next five years. This means 900,000 total direct jobs, 1.7 million indirect jobs, and $20 billion in revenues.
Ayala further shared, “But with greater collaboration from all stakeholders, including government and the academe, we have the potential to grow at 25 percent a year. This would create 1.3 million direct jobs, 3.2 million indirect jobs, and $25 billion in export revenues. The demand is there; it is up to us to ensure we provide the supply.”
The Aquino administration’s economic and education secretaries, at the helm of which is the Department of Trade and Industry’s Greg Domingo, confirmed the government’s continued support after being shown the road map’s scenarios late 2010.
“The IT-BPO industry is one of our country’s key sunshine industries and a major job creator; we will definitely continue to help it grow,” Domingo affirmed.
Furthermore, President Aquino declared on December 1 that he would provide funding worth P62 million through BPAP for the process improvement, talent development, and industry promotion initiatives delineated in the road map.For the complete article, visit http://newsbytes.ph/2011/04/07/non-voice-powers-ph-outsourcing-with-26-growth-in-2010/.