Vol. XXI, No. 193 [ Business World Online ]
Friday, May 2, 2008 | MANILA, PHILIPPINES
THE LOCAL business process outsourcing (BPO) industry is seeking to attract new investments from Australia’s booming BPO market, which industry experts expect to reach close to $4 billion by 2010.
Oscar R. Sañez, chief executive officer of the Business Processing Association of the Philippines (BPAP), said a delegation of about 20 BPO companies are now in Australia to meet with prospective partners. Local players are targeting Australia’s financial sector, Mr. Sañez said.
— BW File Photo
Industry analyst International Data Corp. (IDC) earlier said the entire Australian BPO market would increase to $3.84 billion by 2010, up from $2.39 billion in 2006. Finance and administration and human resource services will continue to account for the bulk of the BPO market, IDC said.
"We’re talking to Australian companies through a joint business conference mission in Sydney to present business opportunities in the Philippines," Mr. Sañez said.
He said the Philippine BPO industry is eyeing markets outside the United States like Europe, Australia, Japan, Singapore and Canada.
He also said the industry would take advantage of an economic slowdown in the US, which could lead to cost-cutting and outsourcing by some companies.
He said the country’s high-value services, large pool of talent, competitive infrastructure and fiscal incentives should help attract more BPO investors. 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.
The BPAP said the country is positioning itself to achieve a 10% share of the $130-billion global BPO market by 2010, or between $13 billion and $16 billion, by addressing major issues such as sustaining talent supply, creating new locations and creating the right business environment for investors. India now corners 40% of the global BPO market, while the Philippines has a 5% share. — BSSD
