Vol. XXI, No. 179 [ Business World Online ]
Monday, April 14, 2008 | MANILA, PHILIPPINES
THE BUSINESS process outsourcing (BPO) industry is on track to achieving its target this year, with $6 billion in revenues expected by the first half of the year.
Oscar R. Sañez, chief executive officer of the Business Processing Association of the Philippines, or BPA/P, said the industry continues to experience growth with the entry of new investors and expansion projects.
"Current operations are very strong. We continue to win new projects while those already doing business here continue to expand operations. Investors are still very aggressive," he said in an interview.
The industry is targeting another 40% growth to at least $7 billion this year on the back of strong demand for back office, engineering and financial services. The industry earned $4.9 billion last year from $3.3 billion in 2006.
Mr. Sañez said main growth drivers for the year include India-based Genpact’s expansion as well as food and beverage giant Nestlé Philippines’ investment for a new services center.
The local industry is also eyeing to attract new investments from markets outside the United States such as Australia, he said. "We’re talking to Australian companies. We’re bringing about 20 companies for a joint business conference mission in Sydney where we will present business opportunities in the Philippines," he said, explaining that Australia’s financial sector is a key target.
Mr. Sañez said the country is positioning to achieve a 10% share of the $130-billion global BPO market by 2010, or about $13 billion-$16 billion by addressing major issues such as sustaining talent supply, creating new locations and sustaining the right business environment for investors. India now corners 40% of the global BPO market, but the Philippines is "in the big opportunity seat," the BPA/P official said.
He also said the industry will collaborate with schools to ensure sustainable talent supply.
The government, for its part, needs to ensure that healthy tax incentives are in place to attract more BPO investors, Mr. Sañez said. — Bernardette S. Sto. Domingo
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