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BPO industry seen to generate $ 3.8-B revenues, 336,000 new jobs
The Manila Bulletin Online - April 06, 2006
by Bernie Cahiles-Magkilat

The business process outsourcing (BPO) industry is projected to generate $ 3.8 billion in revenues this year and employment of 336,000, Trade and Industry Secretary Peter B. Favila said.

Favila expressed confidence of the continued boom in the outsourcing industry saying this sector of the economy is among the good news the country is experiencing.

"The Philippines has indeed emerged as a location of choice for the offshore business process and services of foreign companies," Favila said.

At present, there are over 70 BPO firms operating in the country and over 70,000 seats.

He cited the recent inauguration of additional facilities by Dell Inc. and Sutherland Inc., the Resources Group and e-Telecare Global solutions, which he said are among the companies that he and President Gloria Arroyo met with in New York in September last year.

Other outsourcing companies are also coming in including that of Morgan Stanley and HSBC.

Favila further allayed fears on the impact of FedEx decision to transfer its Asia-Pacific hub operations to Southern China saying the world’s leading logistics provider will nonetheless expand its express businss in the country with the addition of a direct link to Cebu.

In line with this its Asia Pacific growth strategy, FedEx has also prominently positioned the Philippines for its outsourcing requirements, particularly for financial services and call centers.

Favila noted that more investments are pouring in not just in the BPO sector but also in the infrastructure side.

He cited the entry of Hanjin Heavy Industries and Construction for a $ 1-billion shipbuilding facility with initial jobs generation of 6,500.

Favila said the government has already approved the amendments to the Implementing Rules and Regulations of the Build-Operate-Transfer Law by shortening the processing period of infrastructure projects under BOT scheme.

Under the amendment, BOT projects presented to the Investments Coordinating Council Technical Board and the Cabinet committee levels should no longer go through the first, second and third approvals.

At the same time, the government has proposed amendments to the BOT law to make it more attractive and encourage wider private sector participation.

In line with the infrastructure development, the government has launched the P8.33 billion rehabilitation and upgrading of the South Luzon Expressway.

The Philippine Infrastructure Corp. and the National Development Co. have also identified 8 priority infrastructure projects.

"The infrastructure challenge is great and must be addressed now if we are to make businesses more efficient and sustainable development real," Favila said.

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Mile Long Building 316

Legaspi Village

Amorsolo Street

Makati City

Telephone: 8941441

TeleFax: 8124296












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