According to Vikrant Khanna, principal at strategic advisory firm Tholons, with the Philippines’ compounded average growth rate (CAGR) of 9-12 percent seen during 2004 up to 2014, the local business process outsourcing (BPO) sector could expand and be worth $48 billion by 2020.
Khanna presented during the recent International Summit hosted by the Information Technology and Business Process Association of the Philippines (IBPAP) and pointed out that for the global BPO industry, CAGR was only 5-7 percent during the same period. The global outsourcing industry is projected to be valued around $250 billion by 2020. If the CAGR sustains its momentum, the Philippines could capture $48 billion or 20 percent of the total global projections.
IBPAP and the Department of Science and Technology teamed up in creating the information technology and business process management (IT-BPM) roadmap where it is predicted that the BPO sector of the Philippines will employ 1.3 million and be valued $25 billion by 2016. These revenues are only 12 percent of the global outsourcing industry.
Meanwhile, Science Secretary Mario G. Montejo said the goals for 2016 can be easily attained and doubled by 2020. IBPAP also remains positive and confident on the country’s ability to reach the 2016 goals.