Philippines joins top BPO destinations
By ROY C. MABASA
October 3, 2011
Manila Bulletin
MANILA, Philippines — The Philippines has established itself as one of the top destinations globally for services outsourcing, being second only to India, the Philippine government said during the just concluded 58th Session of the Trade and Development Board in Geneva, Switzerland.
The Trade and Development Board, which oversees the activities of the United Nations Conference on Trade and Development (UNCTAD), opened its 58th session last month in Geneva to examine, among other issues, the implications of non-equity modes of international production, which include services outsourcing, contract manufacturing, contract farming, licensing and franchising.
Speaking before the members of the Board, Trade and Industry Undersecretary for Industry and Investments Cristino L. Panlilio pointed out that the Philippines' cost competitiveness, excellent telecommunications infrastructure, large talent pool, strong public-private sector partnerships, and relatively low risk perception are among the factors that transnational corporations considered in selecting the Philippines for services outsourcing.
Services outsourcing in the Philippines includes voice business process outsourcing (BPO), non-voice BPO in finance, accounting, medical transcription, and other areas, and information technology - electronic service outsourcing (IT-ESO).
Panlilio disclosed that in 2010, the Philippine IT-BPO industry reached $9 billion in revenues, and engaged the services of 530,000 full-time employees in financial services, human resources, IT and software development, management services, engineering design, animation and other sectors.
He noted that the industry now accounts for 60 percent of the country's total services exports.
In 2011, the industry is expected to generate US$11 billion in terms of services export revenues, and to provide employment to 640,000 people, he said.
The DTI official said that the IT-BPO Road Map forecasts growth to reach USD 25 billion in revenues and to employ 1.3 million workers by 2016 if key challenges are addressed.
In a statement on behalf of the Asian Group, the Philippine Permanent Representative to the United Nations and other International Organizations in Geneva, Ambassador Evan P. Garcia, noted that three countries — India, the Philippines and China — accounted for approximately 65 per cent of global export revenues related to IT-BPO services in 2009. In terms of licensing activity directed at developing markets, the region comprised almost 80 percent of the total, measured in terms of royalty payments in 2008.
The Trade and Development Board, which oversees the activities of the United Nations Conference on Trade and Development (UNCTAD), opened its 58th session last month in Geneva to examine, among other issues, the implications of non-equity modes of international production, which include services outsourcing, contract manufacturing, contract farming, licensing and franchising.
Speaking before the members of the Board, Trade and Industry Undersecretary for Industry and Investments Cristino L. Panlilio pointed out that the Philippines' cost competitiveness, excellent telecommunications infrastructure, large talent pool, strong public-private sector partnerships, and relatively low risk perception are among the factors that transnational corporations considered in selecting the Philippines for services outsourcing.
Services outsourcing in the Philippines includes voice business process outsourcing (BPO), non-voice BPO in finance, accounting, medical transcription, and other areas, and information technology - electronic service outsourcing (IT-ESO).
Panlilio disclosed that in 2010, the Philippine IT-BPO industry reached $9 billion in revenues, and engaged the services of 530,000 full-time employees in financial services, human resources, IT and software development, management services, engineering design, animation and other sectors.
He noted that the industry now accounts for 60 percent of the country's total services exports.
In 2011, the industry is expected to generate US$11 billion in terms of services export revenues, and to provide employment to 640,000 people, he said.
The DTI official said that the IT-BPO Road Map forecasts growth to reach USD 25 billion in revenues and to employ 1.3 million workers by 2016 if key challenges are addressed.
In a statement on behalf of the Asian Group, the Philippine Permanent Representative to the United Nations and other International Organizations in Geneva, Ambassador Evan P. Garcia, noted that three countries — India, the Philippines and China — accounted for approximately 65 per cent of global export revenues related to IT-BPO services in 2009. In terms of licensing activity directed at developing markets, the region comprised almost 80 percent of the total, measured in terms of royalty payments in 2008.
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