Philippine Outsourcing Sector Piles 18% Revenue Growth in 2012
An interesting data released recently showed once again the relentless growth of the Business Process Outsourcing (BPO) industry of the Philippines. Here’s the takeaways from the report:
- The industry posted 18% revenue growth to $13 billion in 2012 from $11 billion in 2011.
- There is a workforce growth of 21.8% to 780,000 in 2012 from 640,000 in 2011.
- The fastest growing sector is Healthcare BPO, which generated $430 million by end-2012
- There were 200,000 nurses employed to work in medical transcription, data management, medical coding and billing, and pharmaceutical benefit management
- The voice sector employs two-thirds of the entire BPO industry
- The voice sector is seen generating $14.7 billion in revenues
Coming from the Information Technology and Business Process Association of the Philippines (IBPAP), this must be big news.
The growth target of the government is $25 billion in revenues and 1.3 million workforce by 2016 and the latest figure shows the sector is well on its way to beating the target. Workforce is projected to rise to 926,000 this year where 816,000 jobs will come from the voice sector.
Another key sector that’s eyeing revenue growth this year is the information technology and business process management (IT-BPM) sector. Its 2013 revenue target is $16 billion.
The IBPAP conducted a survey among 154 IT-BPM executives cited as the bigger risk factors to the industry are the tight labor market, peso appreciation, and competition.
The strong BPO industry growth last year is an indication of the positive outlook and stronger-than-ever investor confidence to the Philippines. Large enterprises and SMEs from North America, Europe and Australia proven time and again the benefits of outsourcing beyond cost-reduction.
The ability to focus on core competencies and the higher-value functions, beside access to talent and innovation are often cited reasons companies outsource or send their back-office operational jobs to countries like the Philippines, China and India to achieve efficiency.