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More Jobs in BPO Expected as Peso Weakens

by: Sarah Joson

Thursday, January 23, 2014 | Outsourcing News |

Stronger Philippine Peso to Result to more BPO Jobs

According to House Assistant Majority Leader and Cebu Rep. Gerald Anthony Gullas Jr., the recent depreciation of the Philippine Peso against the US dollar means the business process outsourcing (BPO) industry of the Philippines and overseas Filipino workers (OFWs) are earning more.  This also implies that the robust BPO industry will be able to produce more jobs faster this year.

Gullas, who is also a member of the Nacionalista Party, noted that BPO companies are paid in dollars, but operation and salary expenses are in Philippine Pesos.  

Last Firday, the peso closed at its lowest level in over three years at Php45 to a dollar. It is a 10.48 percent difference from the 40.73 to 1 dollar exchange rate in January of last year. Gullas said BPOs now have a stronger Peso spending power, which they could use to expand and hire more employees.
He also estimated that for every $10,000 spent by BPOs on expanding operations, one full-time job is usually produced.

The Cebu Representative added that Cebu is an emerging BPO hub as it now has 25 fully functional IT parks, and 12 more on the way. More than 100,000 are now working full-time in BPOs located in Central Visayas where revenues reached $516 million in 2012. 

Meanwhile, the IT and Business Process Association of the Philippines (IBPAP) projected that the industry will produce 372,000 new jobs starting this year up to 2016.



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