Database segment hogs state aid to BPO sector

THE business process outsourcing (BPO) industry has received millions of pesos in financial support from the Philippine government in 2006, the country’s statistics agency said.

Data released by the National Statistics Office (NSO) showed that total subsidies granted to BPO firms amounted to P269.1 million.

The NSO said subsidies are special grants in the form of financial assistance and tax exemption or tax privilege meant to develop an industry and to protect it from competition.

Among the BPO segments, the database activities and online distribution of electronic content received the biggest subsidy at P160.4 million, followed by other software consultancy and supply at P93 million. Other computer related activities received P8.8 million in state aid.

Establishments engaged in hardware consultancy, medical transcription and animated films and cartoons production did not receive any financial support from the government that same year.

The NSO said the BPO industry employed a total workforce of 141,630 workers, 73.9 percent of which was employed by call centers.

About 9.3 percent of the total was composed of workers in the other software consultancy and supply segment, while 9.1 percent was in data processing. Hardware consultancy had the least number of workers at 1 percent of the total BPO workforce.

In 2006, the total compensation paid by BPO firms to their employees amounted to P38.6 billion, with call center workers receiving three-fourths of the total, or P28.8 billion.

Workers in other software consultancy and supply received a total pay of P4.9 billion, followed by those in data processing at P2.5 billion and hardware consultancy at P10.7 million.

Employees in software publishing received the highest monthly compensation, with each employee receiving P36,559 a month while those in the software consultancy and supply received a salary of P30,864 a month. Workers in animated films and cartoons production had higher monthly salaries at P28,543 compared with call center employees who received an average pay of P22,935 per month.

For 2006, the NSO said the BPO industry generated a gross revenue of P81.8 billion, with call centers contributing the biggest amount at P56.7 billion. Other software consultancy and supply came next at P11.1 billion, while software publishing and data processing generated P5 billion and P4.8 billion, respectively.

Among the BPO segments, hardware consultancy earned the least revenue at P28.3 million.–Darwin G. Amojelar, Manila Times