The local business process outsourcing (BPO) is seen to grow its revenues by triple digits a year until 2020, industry players said. In a briefing, Ganesh Narajan, vice chairman and chief executive of Zensar Technologies, projected that the Philippine BPO industry can generate revenues of $100 billion, or P4 trillion (P46=$1) in 2020 through the development more “qualified and suitable” talent pool and infrastructure.
This would translate to an annualized growth of 128 percent a year in the next 12 years from last year’s $6.1 billion, as reported by Business Processing Association of the Philippines (BPAP).
In contrast, the Indian BPO industry would grow to $200 billion to $300 billion by 2020 from the current $70 billion.
Oscar Sañez, chief executive of BPAP, said the $100 billion revenue projections by 2020 is possible “but the big restraint [in meeting] this target is the availability of talents. The country produces less employable graduates for BPOs.”
The Philippines produces about 450,000 graduates annually and more than 50,000 of these are engineering and IT-related graduates.
By year-end, Sañez expects local BPO industry to grow 23 percent with revenues of between $7.2 billion to $7.5 billion.
“The BPO industry is still a sunshine industry,” he said.
With the contraction of export revenues, the BPO industry now has become very important to the economy, Sañez said.
Data from the National Statistical Coordination Board showed that from the first quarter of 2004 to second quarter 2007, the average contribution of the BPO industry to the national economy was 0.2 percentage points.
In addition, the country’s exports of services has increased, on the average, by 6.2 percentage points because of the rise of the BPO industry.
Narajan said the Philippines is a “very fast” second player in global BPO market and has a lot of potential in terms of cornering a sizeable share of the market, which is expected to grow to $1.5 trillion in the next 10 years.
To meet this target, Narajan recommended that the country should continue to develop more qualified BPO talents and increase value chain of services.
Source: http://www.manilatimes.net/index.php/business/4286-triple-digit-growth-for-bpos-forecast-until-2020
