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Philippines to Remain Global Outsourcing’s No. 3
Friday, July 22, 2011
The Philippines is anticipated to maintain its number 3 position in the global outsourcing market, as indicated by Canada-based research company XMG Global. Its revenue for 2011 is projected to hit $10.7 billion, equating to a 7.4 percent share of the market.
India will maintain its worldwide lead, with its revenue estimated at $61.5 billion, or 42.5 percent of the offshoring revenue for the year. Placing second will be China, with $45.7 billion, or a 31.5 percent share of the market.
The global offshoring market is expected by XMG Global to reach $144.8 billion this year. Coupled with onshoring, the total outsourcing market revenue should hit $464 billion, a 9.2 percent increase from $425 billion the previous year.
XMG Global’s midyear report on the market indicates that the unfavorable effects of the weak U.S. dollar had started to be felt by the industry players in both India and the Philippines, whose revenues greatly rely on U.S.-based clients. The firm’s chief analyst, Lauro Vives, stated, “The U.S. economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 (gross domestic product) growth rate of 2.6 percent, slowing down from last year’s 2.9 percent.”
China, however, was barely affected, as the majority of its outsourcing service providers depended more on East Asian clients like Japan and Korea. Even with the temporary stop in the implementation of some of Japan’s outsourcing contracts due to the calamity the country experienced earlier in the year, China’s outsourcing revenue continues to be strong. XMG Global conveyed, “The disaster may, in fact, open more opportunities, as Japanese companies consider increasing offshoring contracts for noncore operations to reduce business risk.”
The BPO and IT revenues of the Philippines could reach $20 billion at the minimum by 2016 and even $25 billion at the maximum with an improved public-private partnership, according to the Business Processing Association of the Philippines’ Road Map 2011–2016.
A $20 billion industry could mean jobs for as many as nine hundred thousand people, while 1.3 million individuals could benefit from a $25 billion industry.
Codelean Inc. continues to contribute to these commendable figures with its offshore Web design and programming services. To learn more about these services, training courses, and others, e-mail info@codelean.com.
For the complete article, visit http://newsinfo.inquirer.net/26859/ph-to-remain-no-3-in-global-outsourcing.