The Business Processing Association of the Philippines (BPAP) recently cited the stronger peso as a threat to the business process outsourcing (BPO) industry as it may decrease the country’s characteristic of being an economical hub for business operations.
Benedict Hernandez, President at BPAP, mentioned a report done by Outsource2Philippines and Everest Group, stating that the recent depreciation of the Indian rupee vs. the appreciation of the peso puts the former in a more favourable position.
Hernandez added that the difference between the peso and rupee grew as much as 30 percent to the dollar. However, the BPAP executive noted that outsourcing goes beyond cost efficiency - what’s more important is the quality of service and productivity. But with high market prices, it will be more difficult for the industry if the peso continues to gain strength.