MANILA: Business outsourcing may not be the most glamorous industry in the world but it is one of the few bright lights amid the doom and gloom
of the global financial crisis.
The two countries which have benefited the most from outsourcing, India and the Philippines, expect to see some initial pain from the financial turmoil but the industry is confident it will ride out the storm.
In the Philippines the business process outsourcing (BPO) industry expects growth this year of between 35-40 per cent on revenues of around seven billion dollars.
"We are part of the solution, not part of the problem," Oscar Sanez the chief executive of the Business Processing Association of the Philippines (BPAP) said in a recent interview.
The BPO sector expects annual growth of around 40 per cent with revenues hitting 12 billion dollars by 2010 and employing one million people compared with 300,000 this year.
In India, where the industry generates some 40 million dollars in annual export revenues, the story is much the same although it admits that it could expect some initial pain.
The sector traditionally views bad times as offering opportunities as Western companies cut costs by moving work to cheaper destinations offshore.
India leads the world when it comes to outsourcing with more than half the global business while the Philippines is a distant second with around 10 per cent.
Both countries place a great deal of importance on the sector as its growth creates jobs and much-needed revenue.
Rick Santos, the Philippine country chairman for global property services company CB Richard Ellis, told AFP that the crisis would "actually drive more BPO business to the Philippines".
"You will see many more companies having to go offshore just to survive," he said.
He said he expects about 502 million square metres (5.4 billion square feet) of Philippine office space to be leased this year, up 52 per cent from 2007.
India and the Philippines are the preferred destinations for European and American banks and IT companies for outsourcing their back room and call centre operations due to the highly educated work force and English speaking skills in both countries.
Sanez said that despite the financial turmoil he was confident the BPO industry in the Philippines will continue to see growth.
"Judging from the investor meetings we've been having recently our clients will want to ramp up their outsourcing activities in order to accelerate cost savings," he said.
"The Philippines is in a very strategic position due to its strong and successful experience with BPO particularly with large American and British multinationals giving it a high level of credibility and trust especially in critical times."
He conceded that in the short term there could be a "bit of distraction" due to management and ownership realignments in the banking sector.
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of the global financial crisis.
The two countries which have benefited the most from outsourcing, India and the Philippines, expect to see some initial pain from the financial turmoil but the industry is confident it will ride out the storm.
In the Philippines the business process outsourcing (BPO) industry expects growth this year of between 35-40 per cent on revenues of around seven billion dollars.
"We are part of the solution, not part of the problem," Oscar Sanez the chief executive of the Business Processing Association of the Philippines (BPAP) said in a recent interview.
The BPO sector expects annual growth of around 40 per cent with revenues hitting 12 billion dollars by 2010 and employing one million people compared with 300,000 this year.
In India, where the industry generates some 40 million dollars in annual export revenues, the story is much the same although it admits that it could expect some initial pain.
The sector traditionally views bad times as offering opportunities as Western companies cut costs by moving work to cheaper destinations offshore.
India leads the world when it comes to outsourcing with more than half the global business while the Philippines is a distant second with around 10 per cent.
Both countries place a great deal of importance on the sector as its growth creates jobs and much-needed revenue.
Rick Santos, the Philippine country chairman for global property services company CB Richard Ellis, told AFP that the crisis would "actually drive more BPO business to the Philippines".
"You will see many more companies having to go offshore just to survive," he said.
He said he expects about 502 million square metres (5.4 billion square feet) of Philippine office space to be leased this year, up 52 per cent from 2007.
India and the Philippines are the preferred destinations for European and American banks and IT companies for outsourcing their back room and call centre operations due to the highly educated work force and English speaking skills in both countries.
Sanez said that despite the financial turmoil he was confident the BPO industry in the Philippines will continue to see growth.
"Judging from the investor meetings we've been having recently our clients will want to ramp up their outsourcing activities in order to accelerate cost savings," he said.
"The Philippines is in a very strategic position due to its strong and successful experience with BPO particularly with large American and British multinationals giving it a high level of credibility and trust especially in critical times."
He conceded that in the short term there could be a "bit of distraction" due to management and ownership realignments in the banking sector.
Read More Article
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