BUSINESS process outsourcing (BPO) companies are planning to revise expansion plans “upward,” a survey released by an industry group yesterday showed.
In a statement, Oscar R. Sañez, head of the Business Processing Association of the Philippines (BPA/P), said BPO executives surveyed from February to March found that companies would be expanding their work force between 6% and 50% this year, and would be diversifying into more complex services.
“First, we see a return to optimism and better prospects for rapid growth. Second, the industry is more than just recovering from slower growth in 2009. It is diversifying and transforming as a result of increased demand for non-voice and more complex services,” he said.
The BPA/P had said knowledge process outsourcing has become a new “growth driver.”
The group however noted that survey respondents showed increased concern over the tight labor market. Of 160 respondents, 34% indicated the tight labor market as the No. 1 concern when it comes to offering services from the Philippines. More than half, or 54%, said tight labor market was the No. 1, 2, or 3 concern, up from 44% in October.
Mr. Sañez said lack of skilled professionals might hamper expansion of BPOs. The upcoming elections may also have an impact on investor perception. Majority of respondents said “peaceful, credible, and transparent elections” would somewhat significantly, significantly or very significantly affect perception.
The Philippine BPO industry generated revenues of $7.2 billion and employed around 442,000 employees in 2009. Revenues went up by 19% over 2008’s $6.06 billion.
The BPA/P is expecting the industry to grow by nearly a third to $9.5 billion this year.
Source:http://www.bworldonline.com/main/content.php?id=10073
