PHL BPO industry gears up as it faces threat from China

Some 1.1 million Filipinos will be trained for business process outsourcing (BPO) work in the next for years as the industry gears up to sustain global leadership amid threat from other countries, most especially China.

Jose Mari Mercado, president and chief executive officer of the Information Technology and Business Process Association of the Philippines (IBPAP), said the training would be done through industry public-private partnerships.
 
“Throughout IBPAP’s existence, we have focused on developing the country’s capabilities so that we can employ more Filipinos and enable them to build a bright future without leaving the country,” Mercado said in a statement Monday.

The industry generated revenues of $13.2 million from voice and non-voice segments and employed 777,000 across the country in 2012. It targets overall revenue of $25 billion by 2016.

In Asia, the Philippines, along with India, is a top performer in the voice and non-voice sectors, prompting the government to identify the information technology–business process management (IT-BPM) industry as among the industries with a crucial role in poverty reduction and inclusive growth.
 
Mercado said the industry has unleashed a wave of transformation across the globe, enabling several developing economies to emerge as viable, if not strong, contenders.
 
He said although the Philippines and India have dominant share of the market, China is also picking up steam.

In the Top 100 Outsourcing Destinations report by Tholons, a full-service strategic advisory firm for global outsourcing and research, Chinese cities such as Shanghai, Beijing, Shenzhen, and Dalian ranked 11, 12, 14, and 15, respectively. — KBK, GMA News