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Information Technology - BPO market

Growth of Information Technology – BPO industry

According to Bangko Sentral ng Pilipinas’ (BSP) latest BPO survey, the Philippine Information Technology-Business Process Outsourcing (IT-BPO) industry is in sustainable growth. The survey reports that in 2013, earnings from exports of services went up by 13.4 percent to $14.2 billion from $12.5 billion in 2012.

In export-to revenue ratios of segments such as software development, we increased from 91.7 percent to 93.9 percent while in other segments such as backroom operations, data processing, database activities and the like, we increased from 93.6 to 96.9 percent within a year.

However, receipts of the industry exports slightly decreased from 2012’s 93 percent to 92.6 percent in 2013. This accounted for total revenues of $15.3 billion with 53.5 percent ($7.6 billion) from contact or call centers. The United Sates has the biggest IT-BPO services exports’ market at 73.9 percent share.

Moreover, the other sub-sectors recorded a decrease, indicating increases in the share of services provided to domestic clients.

In the meantime by IT-BPO service category, transcription posted the highest growth in export receipts at 112.8 percent. From $198 million in 2012 it increased to $422 million in 2013. Software development came in second with 23.3 percent, other BPOs at 12.4 percent, animation at 7.5 percent and contact centers at 7.3 percent.

Software development was the key driver of exports growth contributing 4.9 percentage points to the 13.4 percent rise in total industry exports in 2013, followed by contact centers and other BPOs at 4.1 and 2.5 percentage points, respectively, to exports growth.

The survey according to Manila Bulletin, also said that the US remained the top export market for the local IT-BPO industry.

…the share of Europe as an export destination increased to 12.1 percent in 2013 from 9.9 percent a year ago. Other leading export markets were Australia-New Zealand (4.5 percent) and Japan (3.6 percent).”

~Bangko Sentral ng Pilipinas’ Official Statement

In addition, BSP monitors all foreign exchange flows into the country including remittances from overseas Filipinos. This includes foreign direct investments, dollar reserves. etc.

The BSP has been conducting its own BPO survey since 2006 although it has a lag time of two years. It covers 1,098 IT-BPO companies. Three other departments work hand in hand with BSP to consolidate the numbers included in the survey. These departments are the trade department, National Statistics Office (NSO) and the National Statistical Coordination Board (NSCB).

The central bank’s methodology was slightly different from industry numbers.


Source:

http://www.mb.com.ph/it-bpo-exports-growth-is-sustainable-bsp/

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