The business process outsourcing (BPO) industry continues to thrive, as firms from the US, Europe, and New Zealand expressed their interest to do business in the Philippines. This development may lead to the increase of firms that will register their business in the Philippines.
US firms expressed their interest to outsource their business to the Philippines during the Department of Trade and Industry’s (DTI) investment promotion roadshows in the US and Europe. The investment promotion roadshows were held earlier this year and aimed to promote the country as the prime outsourcing destination in Asia. Specifically, the government agency wanted to attract US firms involved in the creative services sector and healthcare information management industry to outsource to the Philippines.
Currently, there are 25 to 30 local and foreign game development firms outsourcing in the Philippines employing 3,500 Filipinos. In 2012, the sector earned US$50 million in revenues. On the other hand more than 20,000 persons were employed in the healthcare information management industry in the past year and it’s poised to continue its growth.
The number of European countries outsourcing or offshoring their operations in the Philippines may also increase after the DTI signed the Joint Declaration on Cooperation (JDC) with representatives of the European Free Trade Association (EFTA) in Iceland. Currently, 10% of BPO companies operating in the country are European firms.
Moreover, Switzerland visited the Philippines on July 14 to attend the first meeting of the Joint Economic Commission (JEC). According to DTI, the meeting is part of its strategy to boost its trade engagements in Europe.
The local BPO sector is continually gaining interest from foreign investors as during the first four months of this year, there already were 71 total company visits, a figure that is 41% higher than the past year.
The sector is also poised to expand its knowledge process outsourcing (KPO) services as it aims to offer and branch out to IT and engineering. This is evidenced by New Zealand firms, who are eyeing back office operations in the local BPO sector. The Philippines currently ranks as 22nd largest trading partner of New Zealand. Currently, New Zealand’s main export in the Philippines is food and beverage.
In 2013, the Information Technology (IT) BPO industry generated 900,000 new jobs and earned US$13.3 billion of revenues. This figure is expected to increase every year, with the 2016 projection of the IT and Business Processing Association of the Philippines (IBPAP) reaching 1.3 million new jobs and US$25 billion in annual revenue.
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