A slower growth of 23 percent is expected by the outsourcing industry with revenues of $7.5 billion as the industry admitted that its 2010 roadmap growth targets can only be realized in 2011 even as the foreign players forecast the country’s sunrise industry to reach $100 billion by 2020.
Business Processing Association of the Philippines president Oscar Sanez said at the media launch for the International Outsourcing Summit: Global Market Leaders Addressing Global Issue, which opens today, the growth targets under the Roadmap 2010 cannot be met next year following the global financial crisis.
“We will be delayed by one year,” Sanez said noting that under the Roadmap the $12 billion revenue target is expected to be reached in 2010 but at the growth the industry is going the target can only be attained by 2011.
The delay is attributed to slower growth. The industry was supposed to grow by 30 percent annually until 2010 but last year the industry grew only 26 percent that resulted in revenue generation of only $6.1 billion.
“We are expecting growth this year between 20 to 23 percent and revenue generation of between $7.2 billion to $7.5 billion,” Sanez said.
Likewise, employment target has been revised as the industry expects between 450,000 to 460,000 jobs this year only. Under the Roadmap, the industry is supposed to employ between 760,000 by 2010.
So far, the voice still accounts for two-thirds of the total outsourcing industry while the non-voice accounts for about 15 percent and the rest are into animation and software.
The hope is that the non-voice would continue its robust growth. This segment has been growing double for the last two years with revenues hitting $1 billion last year.
“The non-voice is expected to grow 50 percent annually,” while the voice is expected to grow between 10 to 15 percent given its already high base.
Meanwhile, Dr. Ganesh Natarajan, chairman of NASSCOM, said that based on their study the Philippine outsourcing industry is expected to hit $100 billion by 2020.
Natarajan said that based on their study, the global BPO potential is placed at $300 billion and the IT sector at $300 billion but by 2020, the total outsourcing industry is expected to reach $1.5 trillion.
Of that figure, the study points out to India as the number one country in outsourcing accounting for $250 billion of the total from the current $47 billion.
“As we grow, the Philippines is clearly the number one in terms of partnership,”he said.
The projected $100 billion revenue Philippine outsourcing industry would not just be in contact center but other BPO services like information management outsourcing, applications support in terms of technology updates and other knowledge process outsourcing services.
Natarajan said the study also said that based on this growth this Philippine industry is going to employ 4.5 million jobs and opens more outsourcing sites in the provinces.
Source: http://www.mb.com.ph/articles/225473/bpos-expect-slower-23-percent-growth

