The BPO sector’s revenues are predicted to grow by 15 percent this year, bringing in over $15.3 billion, and are expected to act as the balancing factor for the country’s earnings.
The Philippines’ flourishing business process outsourcing (BPO) sector is identified as a key contributor to the growth of the local economy. The sector has been cited as an attraction for foreign investors and a source for foreign currency earnings. But it still faces challenges as its Asian counterparts are stepping up in the outsourcing services space.
In the "2013 Top 100 Outsourcing Destinations" list created by strategic offshore consultancy firm Tholons, seven cities in the Philippines have been included - two of which are in the top 10. Manila is second next to Bangalore while Cebu took the eighth spot. Other Philippine cities were Santa Rosa, Davao City, Bacolod, Baguio, and Iloilo.
These cities, along with other emerging ones, are said to be contributing significantly to the Philippine economy through export services to businesses abroad. In line with that, a report from Bangko Sentral ng Pilipinas (BSP) showed that the BPO sector is the top contributor for tangible revenue by producing export earnings amounting to $13.3 billion in 2013. The tourism industry, on the other hand, posted $4.8 billion in earnings for the same year. Remittances from overseas Filipino workers remain as the top source for foreign exchange amounting to $22.5 billion last year.
Meanwhile, the balance of payments surplus has been declining in recent years from 2012’s $9.2 billion to just $5 billion last year. BSP said it will continue to drop and reach about $3 billion due to the additional inputs from imports of manufacturing operations, and purchases of energy and raw materials.