by: Sarah Joson
Wednesday, May 22, 2013 | Outsourcing News |
A number of local business process outsourcing (BPO) firms recently said some of their clients are planning to withdraw operations in Manila if the peso continues to rise.
According to the Information Technology and Business Process Association of the Philippines (IBPAP), majority of the organization’s members are seen deferring expansion plans or are moving their business to less expensive outsourcing hubs.
Moreover, Gillian Joyce Virata, Deputy Executive Director at IBPAP, said the PHP 41 to USD 1 exchange rate is tolerable for the outsourcing industry, but if the peso strengthens further, they will have no other choice but to opt for more economic allocations.
However, she said the local BPO industry will retain its goal in the industry roadmap for 2016 because the Philippines is still the leading destination for voice-based processes. Furthermore, the country is the second largest outsourcing hub for non-voice processes. The industry is projected to represent eight percent of the country’s gross domestic product by 2016 by contributing $25 billion in revenues and employment of 1.3 million Filipino workers.
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