BPO revenues seen to overtake remittances
Business process outsourcing (BPO) is growing continually at double-digit rates, giving the industry the confidence that its goal of hitting $25 billion in yearly revenue and 1.3 million in direct jobs by 2016 “is very much achievable.”
According to the Information Technology and Business Process Association of the Philippines (IBPAP), the industry was also on pace to overtaking remittances from overseas Filipino workers.
In 2014, OFWs sent back a total of $24.3 billion, growing at a five-year low of 5.9 percent.
“The industry continues to be strong and vibrant as we have seen 15 percent to 18 percent (compounded annual growth rate in the past 10 years),” IBPAP chair Dan Reyes said in a press briefing. “There remains tremendous growth potential particularly in contact centers, gaming, software development and health information services.”
IBPAP data showed that the industry earned $18.9 billion in 2014 while the figure for 2015 was penciled in at $21.2 billion, an increase of 12 percent.
By 2017, revenues are expected to hit a total of $28.9 billion, the group said. This would exceed the amount of foreign exchange sent home by some 10 million Filipinos abroad.
Also, IBPAP vice chair Lito Tayag said the group was considering to prepare a new six-year industry road map, with the current one wrapping up in 2016.
“We are inviting key political leaders to this year’s International IT-BPM Summit to understand their views,” Tayag said.
The seventh of the annual summit will be held at the Marriott Hotel, with the theme “Powering Nations, Connecting the World.”
Tayag explained that players in the business process management (BPM) industry wanted to have an idea on the prospects of whether they could have the same level of collaboration with the government as they had enjoyed in the past.
“Our success is partly due to the close collaboration between the government and the private sector and we want to have more of that,” Tayag said.
When asked whether the industry group was inclined to support any candidate, Reyes said they have always been apolitical, but that they would support whoever was supportive of the industry.
“One of the enablers of our industry’s growth has been close collaboration with the government since the Estrada administration—both in the executive and legislative branches,” Reyes told the Inquirer in an interview.
He acknowledged that Mar Roxas II, whom President Aquino had endorsed as his preferred successor, helped push the development of the industry during its nascent years when he was trade secretary.
At the same time, Reyes added that Vice President Jejomar Binay also contributed to the industry’s successes since Makati City has one of the highest concentration of BPO activities in the country.