BPM industry in Philippines has been witnessing a 46% growth since 2006.This tremendous growth is attributed to lower labor costs and availability of skilled workforce with high proficiency in English. BPM sector in Philippines had generated around $13billion by 2010 providing employment opportunities to 900,000 people. Government of Philippines continues to offer fiscal and non-fiscal incentives to pull in more foreign investment in the BPM industry. This has lead to a gradual and sustained growth in the industry. A vast majority of BPM companies are located in Metro Manila and Metro Cebu.
BPM industry in Philippines is expected to benefit hugely by a predicted downsizing of large US financial holding companies. Several BPM companies located in Manila and Cebu will see a huge growth in their revenue as American banks are expected to transfer more back offices and business support jobs to more affordable locations. An estimated number of 150,000 jobs are expected to be shed by American banks as they are struggling to cope up with the sluggish economy. The banks are under severe pressure to slash costs in order to stay profitable.
Bank America Corp, which is the 2nd largest US financial holding company, has announced that it will be cutting 16,000 jobs by the end of 2012. Bank America Corp is a major player in the US banking sector with global assets valued at $2.2 trillion. The job cuts will cause Bank America Corp to give up its title as the largest employer in the US banking industry.
Bank America Corp was established in 1904 and currently has operations in more than 40 countries. The corporation employs around 282,000 people, a vast majority of which is from US. Bank America Corp has a global in-house center in Manila which provides a range of business support activities. The corporation’s 3 major rivals-Citigroup Inc, Wells Fargo & Co and JP Morgan Chase & Co also have similar establishments in Manila and other cities in Philippines.
Bank America Continuum Philippines Inc based in Taguig City provides support for activities like customer support, back office operations and transactions, technology support and services, general HR functions, financial services etc. More recruitment and growth will be observed with this organization as Bank America shifts its operations to this center. Moreover the 2 new IT parks being developed in Pasig City will provide infrastructural support and connectivity requirements essential for growth of BPM sector in Philippines.
Several BPM firms registered with the Philippine Economic Zone Authority are the prime firms in these tax-sheltered IT parks. Currently 22 new IT parks are being developed across various parts of Philippines. These IT parks will house a huge number of BPM companies which will tap the upcoming demand for BPM services from the global market, especially the US banking industry.