Phl, top destination for service outsourcing
The Philippine Permanent Mission in Geneva reported that Trade and Industry Undersecretary for Industry and Investments Cristino L. Panlilio said the Philippines has established itself as one of the top destinations globally for services outsourcing, being second only to India.
He told the ongoing 58th Session of the Trade and Development Board, which oversees the activities of the United Nations Conference on Trade and Development (UNCTAD), that the Philippines’ cost competitiveness, excellent telecommunications infrastructure, large talent pool, strong public-private sector partnerships, and relatively low risk perception are among the factors that transnational corporations considered in selecting the Philippines for services outsourcing.
Services outsourcing in the Philippines includes voice business process outsourcing (BPO), non-voice BPO in finance, accounting, medical transcription, and other areas, and information technology – electronic service outsourcing (IT-ESO).
In 2010, the Philippine IT-BPO industry reached US$9 billion in revenues, and engaged the services of 530,000 full-time employees in financial services, human resources, IT and software development, management services, engineering design, animation and other sectors.
Undersecretary Panlilio noted that the industry now accounts for 60 percent of the country’s total services exports.
In 2011, the industry is expected to generate US$11 billion in terms of services export revenues, and to provide employment to 640,000 people.