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Practice News
Outsourcing seen sharply rising
in the Philippines
First posted 02:01pm (Mla time) April 10, 2006
Agence France-Presse
Outsourcing is the way forward for the Philippines, with employment,
revenues and investments from the sector expected to rise by at
least 42 percent this year, Economic Planning Secretary Romulo Neri
said Monday.
While call centers are now at the forefront, other big business
process outsourcing firms are expanding their operations beyond call
centers in the English-speaking Southeast Asian country, Neri said
in a statement.
He cited a study jointly sponsored by the trade department's Board
of Investments and the industry groups Business Process Association
of the Philippines, and the Commission on Information, Communication
and Technology that forecast outsourcing jobs rising by 44 percent
this year compared to 2005.
The study also projected outsourcing revenues growing by 52 percent,
and investments surging by 42 percent in 2006, he said.
He said the study forecast investments would be around 12 billion
pesos this year and by 2010, up to 1.2 million people would be
employed in the sector from 233,000 people at present.
"Outsourcing is a sector with much dynamism. Companies are also
getting more creative to respond to industry demand. For example,
some firms are buying warehouses because of the lack of office
space," Neri said.
He cited industry estimates that business process outsourcing will
bring 3.8 billion dollars in revenues to the Philippines this year,
close to four times higher than the 2001 figure of one billion
dollars.
In 2001, Philippine revenues from business process outsourcing
amounted to 349 million dollars, Neri said.
Global consultancy McKinsey has reported that at least 120
outsourcing companies operate in the Philippines, predicting that
revenues from the sector would reach 10 billion dollars by 2010,
Neri said.
Neri said the Philippines should aim to get 10 percent of the market
for medical transcription, which comes amid a massive exodus of
Filipino doctors, nurses and other medical workers for higher-paying
jobs abroad.
"Think of all the high-paying jobs that will provide our medical
professionals," Neri said, citing reports that the United States
lacks about 80,000 medical transcriptionists.
Medical transcription outsourcing in the Philippines occupies just a
one-percent share of the US market of 12 billion dollars, he added.
Neri said the outsourcing boom should also be a boon for other
industries.
"This is clearly a market for the telecom companies offering
landline connectivity. Real estate is also benefiting from the
surging demand for office space while restaurants open 24 hours a
day to cater to the food and leisure needs of call center agents,"
he added.
Contact Us
___________________________________
You're invited to call us to discuss
your Outsourcing concerns. We shall be glad to talk with you over
the telephone, or in our office or yours, whichever is easiest for
you. You can also e-mail us at
gtalaw@gtalawphil.com and we shall get back to you
immediately.
GUZMAN TAŅEDO & ACAIN
Mile Long Building 316
Legaspi Village
Amorsolo Street
Makati City
Telephone: 8941441
TeleFax: 8124296
e-mail:
gtalaw@gtalawphil.com
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