Outsourcing industry may cut growth goals as global crisis' effects deepen

MANILA, Philippines - Local outsourcing companies may cut growth targets for next year, an indication that they may face difficulty in employing a million Filipinos and contribute nearly one-tenth of the country’s gross domestic product (GDP) by 2010.

The offshoring and outsourcing (O&O) industry’s expansion may likely decelerate given the global slowdown, said Oscar R. Sañez, chief executive officer of the Business Processing Association of the Philippines (BPA/P).

The BPA/P “will assess" its targets by the middle of the year, Sañez told GMANews.TV while at the sidelines of the launching of the Information Communications Technology (ICT) Awards-Philippines in Makati City.

However, the group said it still is possible of earning revenues worth $13 billion and employing close to a million workers, as indicated by the industry’s plans.

Known as Roadmap 2010, the plan formulates a strategy to maintain growth at 40 percent year until 2010 as its client base increases and companies continue to draw strength from Filipino talent, government support, and other incentives.

The same plan also aims offsourcing and outsourcing to corner 8.5 percent of the gross domestic product, or the value of goods and services produced within the country.

In an interview with GMANews.TV, Canadian Chamber of Commerce of the Philippines (CanCham) executive director Sean Georget said the industry is "still growing."

"It might not be growing as much as we thought pre-2008 but we are still expecting most companies to be hiring. There may be some advantages in the industry in certain areas. As America and Europe are looking to cut costs, it becomes a more reliable opportunity to look at outsourcing as a way to reduce certain costs in your own business," Mr. Georget said.

Next: BPO to continue growing although beset by employee shortage