Large BPO companies coming in ’09

Several large business outsourcing companies are coming to the Philippines to take advantage of the country’s competitive edge as a low cost and efficient outsourcing provider, according to the Business Processing Association of the Philippines.

oscar Sanez, chief executive of the group, said he met with the representatives of the large foreign outsourcing firms last week and discussed their plans to locate in the Philippines. He declined to name the companies, which he said were listed in foreign bourses.

Sanez, speaking at the Business JOurnalist Seminar on the Global Economic Crisis with the Philippine Perspective held at the Clark Freeport and Economic Zone in Pampanga, said other smaller companies were also expected to establish their facilities in the Philippines.

The seminar was organized by the Economic Journalists Association of the Philippines, in cooperation with San Miguel Corporation. “This year, we will be openinga couple of big BPO and smaller BPO,” Sanez said.

Two new call centers last week opened at the Fort in Taguig City, creating hundreds of jobs. The companies are Ace Global Contact Center Philippines Inc. of the US with 300 seats and Zenta Philippines Inc. of India, with another 300 seats.

Sanez said information technology and BPO revenues were seen to rise 20 percent to 30 percent this year to a range of $7.2 billion to $8 billion, or on line with the 26 percent growth in export revenues of the sector amounting to $6.061 billion in 2008.

Contact center revenues in 2008 rose 14 percent to $4.1 billion while back office or knowledge process outsourcing revenues doubled to $827 million. Transcription revenues grew 32 percent to $182 million while animation exports rose 14 percent to $120 million.

The BPO sector employed 371,965 people in 2008, up by 25 percent from a year ago. These included 227,000 jobs in contact centers.

Sanez conceded that the revenue growth of 26 percent in 2008 was slightly below expectation. He attributed the lower-than-expected revenues to delays in projects in the fourth quarter, which are now expected to start this year.

He noted that excellent performance by “non-voice” BPO, particularly back office (corporate) services, IT outsourcing and engineering/design process delivery. Non-voice BPO revenues represented 17 percent of the total in 2008.

Zenta Philippines, a new player in the Philippines, said it expected its service delivery center at the One World Square Building in McKinley Hill, Fort Bonifacio, to exceed the 20 percent revenue growth target of the industry within the next 12 months.

“As a firm, we anticipate our revenue growth to exceed 20 percent in the next 12 months and our strategix expansion in Manila will play an imporant role in our company’s growth,” said Zenta Philippines president and chief executive Jack Frecker. –Roderick dela Cruz, Manila Standard Today