The rapidly growing business process outsourcing industry (BPO) of the Philippines was recognized at the United Nations Conference on Trade and Development (Unctad) meet held in Geneva, Switzerland. The event covered the effects of non-equity modes of international production such as outsourcing.
Foreign investors look at the country’s cost effectiveness, available workforce, strong public-private partnerships, and telecommunications setup , said Cristino Panlilio, Trade Undersecretary for Industry and Investments.
He also said the country’s outsourcing industry contributes more than half (60%) of the total services exports. The BPO industry is composed primarily of call center functions, while non-voice services include finance, accounting, and transcription.
The Philippines, now just a spot behind India for BPO services, posted revenues worth $9 billion and employed 530,000 workers. Panlilio said that it is predicted to bring in $11 billion as services export revenues and employ 640,000 people. If issues are resolved, revenues can reach $25 billion and 1.3 million will be employed in the industry by year 2016.
Ambassador Evan P. Garcia, the Philippines’ permanent representative to the UN and other International Organizations during the meet in Geneva, said the IT-BPO services from India, the Philippines, and China are responsible for 65% of the global export revenues in 2009.