January 21, 2012: It has been not so long that Philippines have emerged as one among the most preferred destination for outsourcing. The country’s BPO industry has done well and past records are very impressive.
Well, it is expected that the Business Process Outsourcing industry will show positive trend in the very next 12 months, despite the policies taken by America to discourage offshore outsourcing. Yes, even though America is trying hard to promote insourcing and bring in new trends to increase the number of home jobs, it is expected that there will not be adverse impact on Philippines BPO industry.
Well, the report on this trend was brought in by Canada based research firm XMG Global. It says that for companies in US and the Europe, outsourcing will be the best option rather then insourcing as in the current scenario it will be very difficult for them to overcome the economic downtrends if they switch to insourcing. Well, it is also expected that the outsourcing sectors like Philippines and India will show a positive trend and thus there will be a total growth by 20 percent in the sector.
Instead of insourcing, companies will be more interested in outsourcing as the effects of 2008 global recession are still fresh with the firms. And thus they will be more focused on cost effectiveness. As far as Business Process Outsourcing industry in Philippines is concerned, the sector has grown to become the second largest contributor to the economy of the nation. The contribution of the sector in export revenues in the previous year is around $9 billion. However, the nation is looking forward to target around $11 billion worth business in the year 2012.
It is also estimated that by the year 2016, the revenue of the industry will reach $25 billion mark. Philippines already have a huge potential of skilled and talented workforce which can deliver the best service. US and UK based companies have a huge share in the offshore market such as India and Philippines.
However, the new bill waiting to be passed by the US legislation will discourage offshore outsourcing. But, according to experts it is believed that the bill is a political strategy as the election in United States is awaited. Business Process Association of Philippines (BPAP) is very confident that the industry will definitely grow against United States anti off shoring policies.