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PH IT-BPO Foreign Equity Investments Up by 27.5% in 2012

by: Sarah Joson

Tuesday, June 10, 2014 |

According to data released by Bangko Sentral ng Pilipinas (BSP), the IT-BPO sector posted $7.33 billion worth of foreign equity capital investments in 2012 - 27.5 percent higher than the $5.75 billion posted in 2011.

The BSP uses a different technique in monitoring the local BPO sector’s foreign direct investments (FDI), revenues, and exports. They have released a statement saying equity capital investments in the country are increasing.

Almost 1,000 IT-BPO companies took part in a survey conducted by BSP where it was found that 48 percent of total foreign equity investments valued at $3.3 billion are from call center operations, software development closely followed at 28 percent or $1.9 billion, while other processes made up 21.7 percent or $1.5 billion.

The financial institution also pointed out that software development is the key propeller in terms of contribution to growth. Of the 27.5 percent growth of the industry’s equity capital investments, software development is responsible for 13.4 percent.

During the last months of 2012, Europe was tagged as the top source of the Philippines for foreign direct investments. However, from a year-on-year perspective, FDIs from Europe decreased from 46.2 percent or $2.9 billion to 41.2 percent or $2.5 billion in 2011.

On the other hand, the US accounted for 37.3 percent or $2.6 billion of the industry’s total foreign equity capital investments in 2012, lower than 2011’s 38.5 percent share or $2.1 billion.


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