P-Noy sees continued high growth for BPO

MANILA, Philippines – Profitable business process outsourcing companies in the Philippines will enjoy multi-billion-dollar profits and will continue to help pump prime the local economy in the years to come, President Aquino predicted yesterday.

At the inauguration of IBM’s three new delivery facilities at the UP-Ayala Technohub in Quezon City, the Chief Executive said statistics from the local BPO industry is “highly encouraging” and is expected to “generate even greater revenues in the coming years.”

“The government predicts around $12 to $13 billion (USD) in revenues by 2011. By 2020, your profits are expected to rise to as much as $100 billion, comprising 20 percent of the market share in the global industry,” he projected.

This is good news, according to him, because BPOs were a “virtual non-entity in 2001.”

“Your sector has earned the sunshine industry status by generating over $9 billion in revenues, and employing close to 550,000 full-time individuals in 2009 alone,” Mr. Aquino acknowledged, noting that this contributed to 10.2 percent of the growth in the services sector.

This particular (services) sector “comprises about 49.5 percent of the country’s gross domestic product.” “In the second quarter of 2010, you have already contributed 3.2 percent to the GDP growth of the country,” he said.

The President thanked IBM, which is celebrating its centennial next year, for giving trust to the country by investing and putting up BPOs.

“Congratulations to IBM for achieving another milestone in your ever-growing business venture in the Philippines. The opening of IBM’s three new facilities is symbolic not only of your long-standing tradition of excellence and commitment to business, but also your continued trust and confidence in the Filipino people,” he said.

“For years, you have been the country’s leading information technology partner, and your extensive IT services network has provided IT and business solutions to the government, financial institutions, telecommunications, and retail and distribution sectors, among others,” he added.

“I am certain that these three new facilities will set up more developments for your company and, at the same time, help the government greatly in its job generation initiatives for Filipinos,” Mr. Aquino maintained. –Delon Porcalla (The Philippine Star)