Philippines BPO made $5 billion in ’07

The Philippines’ BPO (business process outsourcing) revenue in 2007 was $5 billion, the Department of Trade and Industry (DTI) announced.

DTI’s annual report indicates that the revenue of the country’s outsourcing industry grew from $3.5 billion in 2006. Currently, the country’s global leader in outsourcing employs a total of 320,000 employees, which is higher than in 2006 with a total of 235,000 employees.

This growth is in line with the Philippine government’s campaign to boost this sector not only locally, but also its goal among key international investors. The Philippines is one of the first tier choices in terms of BPO, especially the call center that is the voiced account scheme.

In addition to call centers, the Philippines also promotes its competence in areas such as medical transcription, IT (information technology) and animation, among others. Earlier, at the recent World Economic Forum, international business leaders in Davos, Switzerland, praised the country’s tremendous growth in outsourcing.

Businesses large and small operate in the Philippines for its cost-effective services and investor-friendly atmosphere. Philippine President Gloria Macapagal-Arroyo, in her earlier statements at the Office of the Press Secretary (OPS), thanked investors for lifting the country’s economic activity. She added that employment in the outsourcing industry is a way to support her campaign for a “Strong Republic” nation.

Contest

Since the competition in the BPO is very high, several countries in Southeast Asia, Europe and the United States are also pushing this industry to stay on top.

Today’s country will undoubtedly succeed in keeping the industry alive. The serious thing to consider is to stay above as other countries are seriously promoting their BPO industry not only to generate revenue but also to be a world leader.

Oscar Sanez, head of the Business Process Association of the Philippines, revealed at Thursday’s e-Services briefing that the country remains competitive.

Mr. Sanez said that voice-based (call center) is still growing in the country because of the English speaking skills of every Filipino. However, Mr. Sanez urged BPO companies to also strengthen the country’s weaknesses in accounting, finance, engineering design and IT services.

Meanwhile, DTI said that Philippine graduates with a high level of liberal arts knowledge, which are the studies that focus on general knowledge and intellectual skills, give the country a favorable advantage as the preferred destination for outsourcing over other offshore destinations like India.

DTI added that the better command of English and higher orientation in customer service are some of the reasons why potential investors love the country.

Meanwhile, Richard Mills, an Asia-Pacific outsourcing expert, revealed that India is known as a top producer of tech knowledge, while the Philippines focuses more on liberal arts.

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Mr Mills revealed that searchers around the world place their businesses in the country such as animation, medical services, insurance litigation, legal services, publishing and content enhancement. Mr. Mills is one of the speakers at e-Services Philippines Outsourcing Conference and Exhibition’s Business Venture Track, which was attended by BPO executives, business people, local and national politicians.

Each year, the nation’s graduates reached 385,000 with a strong background in the English language. The country also produces more than 100,000 accounting and business-related college graduates each year.

To prove the best of the Philippine accountants, the US General Accepted Accounting Principles (GAAP) recognized the skills of the Filipinos in accounting. This is because Philippine accountants who have passed the annual Certified Public Accounting (CPA) exam are familiar with GAAP and International Accounting Standards (IAS) in financial reporting.

Philippine outsourcing will continue to provide the best services to its clients worldwide and is expected to grow to $12.4 billion with 303,000 job openings in the next two years.