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Philippines is global number one in voice BPO services

IT-BPO (Information Technology and Business Process Outsourcing), the Philippines’ sunshine industry, was reported to have gained global leadership in voice BPO services or call centers and is expected to shine even brighter in 2011.

call center

The Business Processing Association of the Philippines (BPAP) with its government counterpart, the Commission on Information and Communications Technology (CICT) project that the Philippine IT-BPO industry could yield about US$11 billion in revenues for the year 2011, which would be a 20% increase from 2010’s estimated revenue of US$9 billion. BPAP and CICT also project that the industry could create an additional 84,000 jobs next year, bringing the total number of IT-BPO workers in the Philippines to around 610,000.

The very positive 2011 industry projections from the industry’s association and government arm comes after international consultant Everest Research declared the Philippines as global number one in the voice BPO services sector and measured its yield at US$5.7 billion in revenues compared with India’s US$5.58 billion in 2010.

BPAP CEO Oscar Sañez said, “œThe key to achieving the US$11 billion goal is aggressive marketing both locally and internationally. We have to increase the awareness of our potential employees of job opportunities in IT and BPO companies, including those in the knowledge process outsourcing and other non-voice sectors. We also have to improve our visibility internationally to market new services in new territories.

“œIn line with our initiatives to reach our targets, the industry is thankful to President Aquino for pledging a fresh PhP62 million fund for the industry when he inaugurated the new IBM facility in Quezon City on December 1″, Sanez added.

In the next 5 years, the global non-voice services sector (including such services as financial services, health care, legal outsourcing, animation, and game development) is expected to grow by as much as 25% a year, while the voice BPO market is expected to double in size to US$50 billion.

For his part, CICT Chairman Ivan Uy said, “œWith seamless government and private sector support and cooperation, I am almost certain that the 2011 industry growth figures can be easily be achieved.

“œThe CICT will be working very closely with BPAP and the rest of the industry players in implementing the President’s directive and mandate for the new PhP62 million promotions budget,” Uy added.

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  • And no.1 in boxing…don’t forget! =)

  • adamsmith

    The benefits Of Indian ITES-BPO exports:

    Abundant talent- India’s young demographic profile is an inherent advantage complemented by an academic infrastructure that generates a large pool of English speaking talent. Talent suitability concerns are being addressed through a combination of government, academia and industry led initiatives. These initiatives include national roll out of skill, setting up finishing schools to supplement graduate education with training in specific technology areas and soft skills and memorandums of understanding (MoUs) with education agencies to facilitate industry inputs on curriculum and teaching and develop faculty development programme.

    Sustained cost competitiveness- India has a strong track record of delivering a significant cost advantage, with outsourcing organisations regularly reporting savings of 25-50 per cent over the original cost base. The ability to achieve such high levels of cost advantage by sourcing services from India is driven primarily by the ability to access highly skilled talent at significantly lower wage costs and the resultant productivity gains derived from having a very competent employee base. This is further complemented by relative advantages in other elements of the cost structure (eg telecom) that contribute to India’s cost competitiveness – even when compared to other low-cost destinations.

    Continued focus on quality- Demonstrated process quality and expertise in service delivery has been a key factor driving India’s sustained leadership in global service delivery. Since the inception of the industry in India, players within the country have been focusing on quality initiatives, to align themselves with international standards. Over the years, the industry has built robust processes and procedures to offer world class IT software and technology related services.

    World class information security environment- Stakeholders of the Indian BPO companies recognise security as an indispensable element of global service delivery. Individual firm level efforts are complemented by a comprehensive policy framework established by the Indian authorities, which has built a strong foundation for an ‘info-secure’ environment in the country.
    Business infrastructure- Rapid growth in key business infrastructure has ensured unhindered growth and expansion of this sector. The BPO sector has been a key beneficiary with the cost of international connectivity declining rapidly and service level improving significantly. The growth is taking place not only in existing urban centres but increasingly in satellite towns and smaller cities as well. Critical business infrastructure such as telecom and commercial real estate is well in place, improving other supporting infrastructure a key priority for the government. STPI (software technology parks of India) infrastructure available across the country and magnitude of investments shows government support to the industry.

    Enabling Business policy and Regulatory environment- The enabling policy environment in India was instrumental in catalysing the early phases of growth in this sector. Policy makers in India have laid special emphasis on encouraging foreign participation in most sectors of the economy, recognising its importance not only as a source of financial capital but also as a facilitator of knowledge and technology transfer.

    The Indian ITES-BPO sector has benefited from this approach, with participating firms enjoying minimal regulatory and policy restrictions along with a broad range of fiscal and procedural incentives. Outsourcing brings substantial benefits to the global economy, and the lion’s share will likely go to the US economy.

    Businesses can dramatically reduce costs and improve their competitive position and the economy can generate more output. As a result, outsourcing is likely to increase in volume by 30 to 40 per cent over the next five years. This will mean a loss of some 200,000 jobs a year in services over the next decade. Rather than shrink from this, the US policy and businesses need to reinforce the flexibility of the economy and soften the impact to those workers, who are likely to be affected by outsourcing. Given the large surplus generated from outsourcing activities, doing so is highly feasible. By doing so, they will help ensure their own competitive interests and America’s and will create a win-win situation for the global economy.


  • panu

    puro growth wala man lang iniatives at benefits sa mga taga bpo at call center.

    Taasan man lang night diff
    Discount sa taxi’s
    24/7 rail system

  • This is something we need to be proud off. BPO has been reputed to be the fastest-growing industry in the world. Here in the Philippines the industry is seen to be still developing, with different call centers leading the way.

    • Thats right!

      Philippines is one of the top hub for IT outsourcing in asia. I hope the government would improve on building better relationships at the same time building proper infrastructure to support these expansion locally.

      They should also focus on helping SMES especially entrepreneurs..coz I believe they’re composing most of the revenue building as well.

      Some group have started campaigning events like I found at: http://esphil.org/eng/one-day-jump-start-to-business-seminar-2011/ or at gonegosyo.com etc…

  • Filipinos are good in English that’s why many company trust them in this kind of business. We are also fast learner and know how to deal well with other people.

  • So it’s really true. Even our company (TeleTech) just opened a new career hub at Pioneer Mandaluyong and another one will be in UP Technohub. They need a lot of talent here in the country especially in NCR. I hope this continues. What do you think?

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  • Very nice post thanks for the posting.

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