Phillipines gaining as outsourcing hub

MANILA: Outsourcing is the way forward for the Philippines, with employment, revenues and investments from the sector expected to rise by at least 42 per cent this year, Economic Planning Secretary Romulo Neri said on Monday.

While call centres are now at the forefront, other big business process outsourcing firms are expanding their operations beyond call centres in the English-speaking Southeast Asian country, Neri said in a statement. He cited a study jointly sponsored by the trade department’s Board of Investments and the industry groups Business Process Association of the Philippines, and the Commission on Information, Communication and Technology that forecast outsourcing jobs rising by 44 per cent this year compared to 2005.

The study also projected outsourcing revenues growing by 52 per cent, and investments surging by 42 per cent in 2006, he said. He said the study forecast investments would be around $234.83 million this year and by 2010, up to 1.2 million people would be employed in the sector from 233,000 people at present.

“Outsourcing is a sector with much dynamism. Companies are also getting more creative to respond to industry demand. For example, some firms are buying warehouses because of the lack of office space,” Neri said.

He cited industry estimates that business process outsourcing will bring $3.8 billion in revenues to the Philippines this year, close to four times higher than the 2001 figure of $one billion.