In its 2013 top 100 ranking of global outsourcing destinations, Tholons, a US-based strategic advisory firm for global outsourcing and investments, has ranked the Philippine capital Manila number 3, lifting it 1 notch to knock off India’s New Delhi from number 3 spot in 2012 to number 4 in 2013. The top spots remained unchanged, ranking Bangalore 1 and Mumbai 2.
By Mariana Angela Garcia
This success is accredited to the fast growth of the Information Technology-Business Process Outsourcing (IT-BPO) industry in the Philippines. The IT-BPO sector in the Philippines focuses on call centers, medical data transcription, software, animation and transactional processing. In 2012, IT-BPO in the Philippines generated more than $13 billion in revenues, an increase of $2 billion from the $11 billion in 2011.
Tholons reported that in 2012, “the Philippines IT-BPO industry was fueled by increased new investments from large and mid-sized foreign providers, as well as greater expansions of established locators and captives across many of the country’s established delivery locations.”
Cebu City was also one of the many areas that experienced new investments in the sector. Cebu City now ranks 8th best global outsourcing destination in Tholons’ Top 100, replacing Dublin, Ireland which now ranks 9th. Cebu City added 17 new BPO companies in 2012 to the 81 existing firms. The Cebu Investment Promotions Center estimates that about 95,000 people are employed in the BPO sector of Cebu City.
The Business Processing Association of the Philippines (BPAP) now projects that revenues of the IT-BPO industry will hit $16 billion in 2013 and have 926,000 full-time employees. IT-BPO has the fastest-growing employment and is one of the highest revenue generating economic sectors in the Philippines.
It is also considered one of the high growth sectors for investment and jobs because of its current size, high growth rate, and potential to employ millions of Filipinos. Other such growth sector in teh Philippines include agribusiness, creative industries, infrastructure, manufacturing and logistics, mining and tourism, medical and travel.
Overall, IT-BPO employment has continuously grown from 640,000 employees in 2011 to approximately 772,000 in 2012. The Aquino administration has set IT-BPO targets of 1.3 million jobs and $25 billion in revenues by the end of President Aqunio’s term in 2016.