The business processing industry in Asia remains to be optimistic in the past years despite the economic downturn happening across the world. This is because the industry continues to have a positive outlook. This is evident in the Philippine contact center industry where it remains to be attractive even to many foreign clients. The country is hitting it big in the industry due to its rich potential workforce.
The Philippines has been a part of the global outsourcing industry.
In 2015, the country’s BPO industry is at its highest peak. It was great; everything was going smoothly. However, in 2016, it was predicted that the annual growth rate of the BPO industry has decreased. It slowed down to nine percent, which is eight-point short from the targeted 17 percent growth rate.
Sadly, it has been forecasted that the growth of the industry will continue to be stagnant until 2022. According to a Rappler’s report last September, Rey Untal, president and chief executive officer of the Information Technology and Business Process Association of the Philippines (IBPAP), stated “Given that we already have this much scale and further leading to maturity, the growth leading to 2022 is slower. Before, annual growth was in the mid-teens at 15% to 16%. When we forecasted it for [our] most recent roadmap, we projected growth revenue-wise to be around 9%.”
One of the reasons as to why companies are reluctant in placing their investment in the country is security risk. When the new administration came to office, there were wars in the Mindanao part of the country, specifically in Marawi City. There were foreign investors that were afraid to put their money in the country because an all-out war might occur. Terrorism hindered the increase of investors in the country.
Another reason is the tax regime. The companies were promised of zero tax if they invest in the Philippines. There’s been an issue regarding that because of the new tax laws in the country. However, it was resolved even before it affected jobs. There were also other political setbacks like Donald Trump saying he wants companies to focus on American employees rather than employing other nation’s people through offshore outsourcing.
The BPO industry generated $23 billion in revenues in 2017 even with all of those issues. According to Kittelson & Carpo Consulting, the IT-BPOs in the Philippines are slowly being active again. There are as many as three newly registered companies every week during the early part of first quarter of 2018.
Benedict Hernandez, chairman of the Contact Center Association of the Philippines (CCAP), said that the roadmap to 2022 is looking bright. Local information technology-business process management (IT-BPM) is projected to have almost $40 billion revenue after six years, at the end of 2022.
With that, BPO employees need not to worry because Philippines will not fall down in the list of countries that rule the BPO world. More and more companies will invest and that means there will be more jobs available.