BPO sector bullish amid expansion of local players

OFFICIALS from the business process outsourcing (BPO) sector and the government on Monday talked up the Philippines’ prospects in this global industry, as a number of companies announced expansion plans in the country.

On the sidelines of the 10th e-Services Global Sourcing Conference and Exhibition Chairman Ray Anthony Roxas-Chua 3rd of the Commission on Information and Communications Technology (CICT) told reporters that the quality talent pool, good telecommunications infrastructure and the cost-efficiency of outsourcing in the country will give the Philippines a strong hold on clients, even as China and more countries in Latin America and Eastern Europe vie for a piece of the outsourcing pie.

The CICT official said the voice segment, which accounts for about two-thirds of accounts serviced here, continues to grow, while the non-voice sector, composed of back office, creative and information technology (IT) services, is posting even faster growth.

Citing data from Everest Research Institute, the official said the Philippines holds about 15 percent of the global outsourcing market, just behind market leaders India and Canada.

The Philippine BPO industry last year grew about 19 percent, both in revenue and employment. It targets 26-percent growth, or revenues of about $9 billion, while employment is projected to reach between 550,000 and 600,000 by yearend.

According to Gigi Virata, Business Processing Association of the Philippines (BPAP) executive director for information and research, the local outsourcing sector expects a rapid business build-up in the first half of this year as demand from the US—the Philippines’ largest market—recovers, and as the local industry serves a more diverse clientele.

Aussie firm Salmat Ltd. also on Monday announced the opening of its first Manila facility that would cater to customers from Australia and New Zealand.

Philip Hadcroft, Salmat general manager, said the McKinley Hill facility would initially hire 100 people, but employment reach 800 in the next three years as the company’s Philippine operations position to become its Asia-Pacific hub.

Salmat already has an existing call center, which had been operating in Muntinlupa City since 1996, but this facility only services companies, including multinationals, in the Philippines.

Besides Salmat, another BPO firm, StarTek Inc., said it will boost its workforce after signing a lease for a new customer care facility in the Eton Cyberpod Corinthian business center.

In a statement, StarTek said the Eton facility is its second in the Philippines.

“The addition of a second location in the Philippines continues our global expansion plans,” said Larry Jones, StarTek president and chief executive, adding that the new facility will accommodate another 2,100 seats. –BEN ARNOLD O. DE VERA Reporter, Manila Times With Darwin G. Amojelar