According to one of Sun Life-AIM’s financial planners, Joyce Tankeh, the younger group of business process outsourcing (BPO) workers is noticeably spending more because of their larger than usual salaries. A fresh college graduate who is working in the industry can earn at least P20,000.
Tankeh said BPO employees should create their own analysis of the benefits that they receive from their companies so they can at least make estimates for their future. This is really important because not all BPO firms offer retirement packages.
The financial planning expert added that this particular group needs to have goals. For instance, a short-term goal could mean a new gadget or an out-of-the-country trip. Another type of goal is medium-term, which could be buying a house or a car. The last one is the long-term goal which basically focuses on retirement.
Early retirement was also discussed by Tankeh. She said it’s a popular decision among her clients who are in their 20s. She concluded that apart from setting goals, BPO employees should work on a strategy in achieving them, which includes being frugal.
According to a Monetary Board executive, in five years’ time, the revenues from the business process outsourcing (BPO) sector will exceed remittances from overseas Filipino workers (OFWs).
During the 39th Philippine Business Conference Expo, former Socioeconomic Planning Secretary Felipe Medalla said with the robust state of the local BPO sector worth $16 billion, it will surpass OFW remittances which are currently worth around $24 billion. The BPO sector grows 10 percent a year and is expected to be worth $20 billion next year.
The rise of BPO has also created a domino effect for employment and demand for properties. However, Medalla said talent shortage is still a challenge that the Philippines has yet to overcome.
Meanwhile, cash remittances from OFWs increased 6.8 percent during the first eight months of this year which amounts to $1.9 billion. Year-on-year, it increased by 5.9 percent.
Asst. Secretary Dizon added that Dumaguete and Iloilo City are the frontrunners of the Visayas region in the Next Wave Cities program which aims to develop ICT hubs outside Manila. The program’s rating factors include size of workforce and telco infrastructure. Meanwhile, Bacolod City and Metro Cebu are identified as centers for excellence for ICT management.
The ICT sector is predicted to employ 1.3 million professionals and earn $25 to $27.5 billion in revenues. It is also expected to be worth $50 billion by 2015.
Meanwhile, the Department of Science and Technology will focus on non-voice, complex processes such as animation, game development, healthcare management, human resources, and other information technology-related services.
According to Col Financial Group, Inc. Head April Lee-Tan, they are still optimistic that the stock market will continue to pull up and reach 7,000 next year. However, the flattish earnings of local banks might pose a threat.
Meanwhile, Nomura Equity Research, the research division of Japanese investment bank Nomura, stated that on the earnings and profitability side, the Philippines will post slower growth compared to its counterparts in Southeast Asia. The bank added that Singapore and the Philippines might post the lowest growth rates while the region could experience an average growth rate of nine percent next year.
On the other hand, Tan noted that the country will withstand the challenges as it possesses a strong fundamental framework. She added that even with the unstable state of foreign economies, the Philippines will stay resilient.
Three things that are seen reinforcing the strength of the Philippine economy are the current account surplus of the country, remittances from overseas Filipino workers, and the strong business process outsourcing (BPO) sector.
The 7.2 magnitude earthquake which occurred last Tuesday morning in Cebu and Bohol prompted business process outsourcing (BPO) firms to halt operations. Employees were evacuated from the premises immediately after tremors ended, and were advised to report to work the following day.
According to the Information Technology and Business Process Association of the Philippines (IBPAP), safety is always the top priority of BPO firms. The organization also said only minor damages were sustained by BPO buildings.
Jomari Mercado, President of IBPAP, added that since the BPO structures are relatively new, almost everything is compliant with the newest safety codes for construction.