The country’s business process outsourcing (BPO) sector was expected to generate $15.5 billion in revenues in 2013 or 16 percent higher than 2012 and employed 900,000 for 16 percent growth over 2012, initial estimates gathered by he Information Technology and Business Process Association (IBPAP) showed.
IBPAP President and CEO Jose Mari Mercado said the association has committed to ensure that the Philippines continues to strengthen its global leadership position in the IT-BPM space in light of the recent study by investment firm Tholons which ranked the Philippines as the world’s second outsourcing destinations among top 100 cities surveyed.
“While we are very happy with this achievement, we will continue to proactively undertake initiatives that will further the development and growth of the industry, which we hope will help propel us to the top in the years to come,” Mercado said.
IBPAP targets $25 billion revenues and an estimated 1.3-million labor force by 2016.For 2013, initial estimates indicate a strong finish for the industry, with revenues seen to +reach $15.5 billion or a 16% year-on-year growth, and full-time employees to total 900,000, equivalent to a 16% increase.
Based on Tholons report, Metro Manila has edged out Mumbai, India, to take the second spot in the Top 100 Outsourcing Destinations for 2014 recently released by the investment advisory firm Tholons. Moving up one notch from its 2013 standing, Manila is next only to Bangalore, India, which continues to occupy the number-one position.
Six other locations in the country also made it to the list, which is a flagship project of Tholons and is acknowledged as the de facto ranking for outsourcing cities worldwide. Aside from Metro Manila, Cebu also figured in the top ten, maintaining its ranking at number eight, while Davao City placed at69th, Sta. Rosa in Laguna at 82nd, and Bacolod at 93rd, all moved up in the rankings this year. Iloilo, however, went down two notches from 93rd to 95th, while Baguio stayed at the 99th spot.
“The growth rate of Manila’s BPO sector remained consistent with previous years, and while Contact Support services continue to characterize the location’s identity, a notable increase in Finance and Accounting Outsourced (FAO) services and other higher value processes in the Information Technology Outsourcing (ITO) and other Knowledge Processes Outsourcing (KPO) spaces, have also been observed the past two years,” the report said.
For the tier-2 locations, Tholons cited the concerted efforts by national and local governments, along with the IBPAP, as the key factor in their emergence.

Source: Manila Bulletin - January 30, 2014