Outsourcing sector optimistic, expects continued profit gains
October 13, 2011 at 14:52
THE LOCAL business process outsourcing (BPO) industry expects to rake in $11 billion this year, up nearly a quarter from 2010, and then grow the number by at least a fifth next year, officials yesterday said.
The biggest challenge for the sector, the Business Processing Association of the Philippines (BPAP) said, is augmenting its workforce given continued demand for services.
“[This year, revenues will be] roughly $11 billion and plus 20% of that for next year,” BPAP Chairman Alfredo I. Ayala said in a press conference during the opening of the International Outsourcing Summit 2011.
Gillian Joyce G. Virata, BPAP senior executive director, said the 2011 figures represent 22-23% growth from last year.
The BPO sector recorded $9 billion in revenues last year. Mr. Ayala said they expect this to rise to $25 billion by 2016.
“A growth of 15% per annum … to an accelerated case of 20% per annum is expected from the BPO sector,” he claimed.
The BPAP is pushing for five key initiatives focused on serving its manpower needs, among them near-hire training, training for trainors, and tweaks to school curriculums.
Trade Secretary Gregory L. Domingo, who delivered a keynote speech, highlighted the sector’s “supply” problem.
“Even as early as 2003, that has already been the issue,” he said.
Speakers from other countries noted government initiatives in support of their own outsourcing sectors.
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By: K. A. Martin
Source: Business World, Oct. 12, 2011
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