BPO continues to power growth of services sector — Palace

June 2, 2010 8:26 pm 

MANILA, June 2 — Malacañang said on Wednesday the business process outsourcing (BPO) sector in the country continues to flourish, contributing tremendously to the growth of the service industry.

According to Executive Secretary Leandro Mendoza in a press briefing, the BPO industry is “giving the glow to the 6.1 percent first quarter growth in the service sector compared to the 1.9 percent a year ago.”

Overall, first quarter gross domestic product (GDP) on total goods, services and products in the country grew by 7.3 percent, officials said, affirming the figure given by economic agencies

The BPO sector alone generated over $ 7.2 billion last year, approximating earlier projections which estimated the year-end earnings within that range. In year 2000, BPO was a mere $ 24 million industry.

In the same press briefing, Secretary Ray Anthony Roxas-Chua III, chairman of the Commission on Information and Communications Technology (CICT), said that despite the effects of the global economic crisis, the BPO industry grew by 19 percent and generated 440,000 employees despite recession last year.

In her 2009 State-of-the-Nation Address, President Gloria Macapagal-Arroyo gave importance to developing the BPO sector, citing it as an engine of growth.

With the global economy recovered as of late last year, Chua is expecting an industry growth of 26 percent for 2010.

According to Chua, the country is building a name as a preferred off-shoring destination with the quality of service that the country provides.

He was optimistic that American businesses will continue their outsourcing forays, despite attempts by United States lawmakers to pass a bill imposing higher taxes on American firms resorting to offshoring employment.

Chua said the government continuously monitors these developments in the United States.

“We are constantly monitoring the situation and it is up to our bilateral relationship with the U.S. to avert any adverse effect of such a move,” Chua said, adding that the global demand for outsourcing services continues to grow.

He also said there are a lot of services that can be outsourced that has not been outsourced, He said the challenge does not lie in the demand but in keeping up the supply of personnel by developing new talents. (PNA)



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