January 31, 2012: It is known to everyone that one of the major worries in the Business Process Outsourcing industry is the economic down trend and United States promoting insourcing. And as a result there will be some direct impact on the offshore markets. Keeping this threat in mind the offshore markets are putting more effort to promote the Business Process Outsourcing business. It is particularly Philippines government which is expecting more from the call centers in this point of time. But, it cannot be predicted that the sector can make much contribution since the economic condition might any time worsen.
Experts gave the opinion that in spite of investing more on promoting the business it will be much more feasible to support other major growth drivers in the country. It is recommended that more investment should be made to support Filipino industry and science and technology.
Even though there is huge risk in the Business Process Industry today, the government of the nation has decided to set aside around P575 million for the industry as subsidies. This money is aimed to promote training in the industry as well for more career development, marketing and scholarships which would help the industry to get more skilled man power.
As of now the contribution by BPO sector to the economy of the nation is competitively small than other sectors. It is also found that the sector is barely integrated into local economy. It is appreciable that the sector has helped to provide jobs in the recent times, but it does not encourage domestic production, experts added.
However, it is obvious that there is a big danger that the BPO sector as a whole has to face if the insourcing bill is passed. The bill can make most of the major player to pull back the business dealings which they are continuing with service providers in the offshore. Moreover there is a huge competition in the Business Process Outsourcing industry as such. Many countries have emerged as favorite location for US and UK based companies.
The government authorities are very optimistic about the revenues which the industry can generate in the coming year. It is expected that by 2016, there will be a total growth of around $25 billion in the sector. It will also generate jobs for around 1.3 million. This is considered to be very risky and the government authorities must rethink about the investment which is to be made into the BPO sector. Exclusively depending on the sector might end up in high risk.