As the competition in the global business process outsourcing (BPO) segment gets tougher, there’s no reason for the Philippine BPO industry to become complacent, especially since it aims to reach $25 billion in revenues and employ 1.5 million by 2016, said SPI Global President and Chief Executive Officer Maulik Parekh.
He said changes need to be made by the industry to ensure that these targets are met despite the tough competition in the form of emerging outsourcing locations. The sector is poised to post 20 percent growth annually in the next two years, even if the economy is going through a slump.
Parekh said the Philippine BPO industry will face several challenges, particularly since the country is not the only one which offers outsourcing services. India, for instance, is an ideal location of choice when it comes to non-voice business functions. Another destination is China which has two million college graduates annually, whereas the Philippines only produces about 400,000. Filipino workers have better English communication skills, but China’s workforce has the technical advantage. Moreover, as the US becomes more Hispanic, destinations in Latin America pose a challenge since they can offer bilingual support.