Outsourcing industry may cut growth goals as global crisis' effects deepen

MANILA, Philippines - Local outsourcing companies may cut growth targets for next year, an indication that they may face difficulty in employing a million Filipinos and contribute nearly one-tenth of the country’s gross domestic product (GDP) by 2010. The offshoring and outsourcing (O&O) industry’s expansion may likely decelerate given the global slowdown, said Oscar R. Sañez, chief executive officer of the Business Processing Association of the Philippines (BPA/P). The BPA/P “will assess" its targets by the middle of the year, Sañez told GMANews.TV while at the sidelines of the launching of the Information Communications Technology (ICT) Awards-Philippines in Makati City. However, the group said it still is possible of earning revenues worth $13 billion and employing close to a million workers, as indicated by the industry’s plans. Known as Roadmap 2010, the plan formulates a strategy to maintain growth at 40 percent year until 2010 as its client base increases and companies continue to draw strength from Filipino talent, government support, and other incentives. The same plan also aims offsourcing and outsourcing to corner 8.5 percent of the gross domestic product, or the value of goods and services produced within the country. In an interview with GMANews.TV, Canadian Chamber of Commerce of the Philippines (CanCham) executive director Sean Georget said the industry is "still growing." "It might not be growing as much as we thought pre-2008 but we are still expecting most companies to be hiring. There may be some advantages in the industry in certain areas. As America and Europe are looking to cut costs, it becomes a more reliable opportunity to look at outsourcing as a way to reduce certain costs in your own business," Mr. Georget said. Next: BPO to continue growing although beset by employee shortage BPO to continue growing although beset by employee shortage While Mr. Sañez remains optimistic for the business process outsourcing (BPO) industry, he admitted there is a "shortage" of qualified candidates. “[The BPO industry] still has bright prospects," he told reporters during the event. “The downside risk is if we cannot meet the supply requirements, if ever we cannot promote the country to the US or markets that outsource. There are a lot of competitors already; other markets are promoting outsourcing. We have to be aggressive in marketing the Philippines. We need to improve the quality of our graduates." The CanCham and BPA/P organized the annual ICT Awards-Philippines to recognize outstanding performance and significant contributions of organizations and individuals in the ICT community. CanCham and BPA/P agreed to jointly organize the ICT awards in the next three years. "The ICT Awards-Philippines aims to promote and reinforce the success of the Philippine BPO industry at an international platform to position further the country as the world's BPO destination of choice," CanCham President Richard Mills said. The Multi-sourcing Company of the Year is a new award category that will be introduced this year to give credit to different lines of business spread across the BPO, IT outsourcing, and engineering services outsourcing. Outstanding BPO companies are cited for the BPO Company of the Year Award based on company size, revenue growth and employees as well as quality and diversity of international clients. Among those nominated include Accenture, Inc., Callbox Sales and Marketing Solutions, CCTP Cybercity Teleservices Philippines, Convergys Philippines, Siemens IT Solutions and Services, Sitel Philippines Corp., Sutherland Global Services, TeleTech Customer Care Management Philippines and Telus International Companies. Fastest Growing BPO Company of the Year Award are those with significant growth in revenues and full-time employees. Nominated to this category were Convergys, NCO Financial Systems Inc., Siemens IT Soultions and Services, Sitel, and Sutherland Global. Other categories include Best Mid-sized BPO Company of the Year, Best New BPO Locator of the Year, BPO Employer of the Year Award, and ICT Individual Contributor of the Year. - GMANews.TV