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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.


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Telephone: 8941441

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