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PH BPO to Remain Strong amidst Insourcing Activities

by: Sarah Joson

Thursday, February 6, 2014 | Outsourcing News |

The business process outsourcing (BPO) industry of the Philippines is anticipated to continue growing even if insourcing activities are rising in foreign markets. One of its key traits is the ability to maintain its competitive edge in the global outsourcing space.

Department of Trade and Industry Secretary Gregory L. Domingo said executives usually give positive predictions, but decisions on where an operation is to be conducted still rely on competitiveness. The Philippines is found to be in a good competitive position in the information technology-business process management (IT-BPM) segment where cost competitiveness is a major issue.

The insourcing movement was first introduced in the US back in 2012. It was seen as a solution to create more jobs particularly in the manufacturing industry. Government benefits such as tax breaks were even suggested to entice US-based firms to source business processes locally.

Sec. Domingo explained that the manufacturing industry has been improving in recent years, but itís because of the 70 percent decrease in power costs and not to the effort of bringing jobs back home. He added that the IT-BPO growth projections will only be affected if the US implements a policy that forces companies to insource, which is improbable.

Meanwhile, Jose Mari Mercado, President of the Information Technology and Business Process Association of the Philippines (IT-BPAP), said in an email memo that revenues will reach $18 billion this year, a 16-percent jump from 2013ís projected $15.5 billion.


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