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ASEAN Integration Seen to Pose Challenges to Philippine BPO

by: Sarah Joson

Thursday, February 13, 2014 | Outsourcing News |

According to international business consultancy firm Oxford Business Group, the business process outsourcing (BPO) industry will fuel the economic growth of the Philippines by contributing more to the dollar earnings of the country. It is predicted to produce nearly $15.3 billion in 2014, 15 percent more than the previous year’s $13.3 billion. However, the 2015 ASEAN integration is anticipated to generate challenges to the country’s progress.

BPO to Fuel PH Economic Growth

Information from the Bangko Sentral ng Pilipinas (BSP) indicated that one of the Philippines’ key sources for hard cash is the BPO sector. On the other hand, the tourism sector is projected to contribute $4.8 billion in earnings. Overseas Filipino workers’ remittances are still the major contributor of foreign exchange. In fact, last year, it accounted for $22.5 billion in foreign exchange.

The Philippines has been maintaining a stable balance of payments (BOP) surplus since 2005, but over the years, its depletion has been closely observed. In 2013, it amounted to $5 billion, a huge drop from 2012’s $9.2 billion.

The BSP explained that surplus continues to drop this 2014 and reach nearly $3 billion. One of the reasons is the rise in the country’s imports of energy and raw materials for manufacturing operations.

Over the next three years, the BPO industry is anticipated to create 120,000 employment opportunities, producing a total of 1.3 million jobs. Revenue is seen to grow twice as much from 2013 and reach $27 billion this year.

Source:
http://www.abs-cbnnews.com/

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