The industry is said to take over the place of the top contributor to the Philippine’s GDP after this year. With its continuous growth at double digit rates, it is confident that it will reach its goal of hitting $25 billion in yearly BPO revenues producing more than a million jobs.
This prediction is based on the speed of growth the sector has achieved. In 2014, the BPO revenue was registered as $18.9 billion and is forecasted to grow between 15 – 18 percent last year. The positivity of this prediction is also because more BPO space is being take-up. There has been an estimated 200,000 sqm of office space being occupied by BPO companies and most of them were pre-leased.
Pinnacle Real Estate Consulting Services Inc. and Information Technology and Business Process Association of the Philippines (IBPAP) stated that the industry was also in speed to overtaking remittances from overseas Filipino workers. BPO revenues from call center firms and outsourcing centers could soon grow faster than inflows from overseas Filipino workers.
On the other hand, Middle East conditions such as the dropping oil prices and tensions between countries within the region are expected to affect the overseas remittances. When conflict materializes there is always a possibility of a labor cut-off involving millions of Filipinos who are working in this part of the world.
As of now, the Department of Labor and Employment reported that there are still no significant numbers of retrenchment activities observed.
BANGKO Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said that unlike remittances that is vulnerable to a lot of factors, the nature of the outsourcing industry poses an uncompromising situation whether the economy is expanding or shrinking.
According to her: “The BPO association in the Philippines is quite confident, because whether it’s a downside or an upside cycle in the global economy, outsourcing makes sense. When it’s down, you cut down cost. When it’s up, you become competitive and outsource your operations to other countries.”