Philippine Outsourcing – Gearing Ahead For A Successful 2013

On January 14, 2013, in Outsourcing, by Business Development Group
Furthermore, the Philippines placed 87th among 141 countries in Forbes’ Best Countries for Business list, beating both China and India.

Furthermore, the Philippines placed 87th among 141 countries in Forbes’ Best Countries for Business list, beating both China and India.

According to Cebu Investment and Promotions Center (CIPC) Managing Director, Joel Mari Yu, 2012 was a good year for BPOs, describing the past year as “much livelier than 2011” mainly due to the fact that most of the new players focused on knowledge process outsourcing, the next step up the outsourcing value chain. Yu expects 2013 to be “as good or even better” for BPOs, pointing out the country’s macro-economic fundamentals that restored investors’ confidence to do business in the Philippines.

Related Article: 2012 Good Year for BPOs

In 2012, The Global Competitiveness Report 2012-2013 released by the World Economic Forum (WEF) ranked the Philippines 65th in global competitiveness, jumping 10 places from its previous ranking. The country performed strongly in the macro-economic environment category which represents economic stability. Furthermore, the Philippines placed 87th among 141 countries in Forbes’ Best Countries for Business list, beating both China and India. Out of the 11 factors considered in the report, the country performed strongest in terms of market performance, jumping 11 notches to 4th place. The country’s growing business process outsourcing industry was identified as one of the major contributors to market performance by both reports.

Related Article: Outsourcing Sector Empowers Philippines’ Global Competitiveness

However, 2012 was also not without its challenges. The BPO industry was threatened by a U.S. anti-outsourcing bill, heavily supported by U.S. President Barack Obama, seeking to bring outsourced jobs back to the U.S. Even though the bill was rejected by the U.S. Senate on July 2012, the re-election of President Barack Obama last November has reawakened fears of what this could mean to Philippines’ outsourcing industry.

Related Article: U.S. Anti-Outsourcing Bill Rejected by Senate

The strengthening peso also proved to be a disadvantage for the BPO industry. The Philippine peso ended at P41.05 to $1 on the last trading in 2012, stronger than P43.92 to $1 in early 2012. According to Business Processing Association of the Philippines (BPAP) president and CEO, Benedict Hernandez, “The cost differential has substantially widened and that is much more difficult to manage.”

Related Article: Philippine Outsourcing Continues to Grow Despite Rise of Local Currency

However, the BPO industry remains confident of hitting the $13 billion revenue target for 2012 despite rise of the Philippine peso. “As for our forecasts, they still hold true for 2012,” said Hernandez. For 2013, BPAP targets $16 billion in revenues and 926,000 jobs as part of its roadmap target of $25 billion in revenues and 1.3 million jobs by 2016.

Related Article: BPO Sector Targets $13-B Revenue This Year

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3 Responses to “Philippine Outsourcing – Gearing Ahead For A Successful 2013”

  1. anacatherine says:

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