Philippine BPO sector eyes Japan, Europe as new markets
05/20/2009 | 08:00 PM
MANILA, Philippines - With its main market, the United States, facing severe economic woes, the Philippine business process outsourcing (BPO) sector is looking at Japan, Europe and Australia as possible new sources of much-needed investments and revenues, the government said Wednesday.
Speaking on the sidelines of the 13th ICT Professionals’ Congress, Mon Ibrahim commissioner for cyber services of the Commission on Information and Communications Technology’s (CICT), admitted that with the recent economic meltdown weakening the US economy, Philippine BPO companies are now looking for new markets to do business with.
The US has been the industry’s main source of revenues and contracts. Among the new markets that local players are looking to reach are Japan, Europe, Australia and New Zealand.
In Japan alone, Ibrahim said there is a $5-billion potential market that can be tapped by Philippine-based BPO companies.
Europe, Australia and New Zealand are also lucrative sources of new contracts and capital, he said.
“We are continuously looking for new markets and we have identified Japan, Europe Australia and New Zealand as possible markets," Ibrahim said. “This will help further increase our market share (of the outsourcing business)," he added.
At present, Ibrahim said the Philippines enjoys 15 percent of the global outsourcing business, trailing behind India and Canada.
Ibrahim said despite the global economic meltdown, the Philippine BPO sector is still growing. In fact, he said, the BPO players are looking for possible expansions to the locations outside of Metro Manila and Metro Cebu, which were the center of the first wave of BPO investments in the country.
Among new locations being prepped for the industry are Laguna, Cavite, Iloilo, Bacolod, Cagayan de Oro, among others.
In the case of the software industry, Bettina Quimson, a member of the board of directors of the Philippine Software Industry Association (PSIA), said the industry is expecting minimal growth in revenues this year from a haul of $650 million in 2008.
“This year, there are 100,000 to 150,000 jobs available and it’s just a matter of qualified applicants," Ibrahim said.
The substandard English skills and computer literacy of fresh graduates contribute to the lack of qualified personnel in the industry.
“Somehow, (English and computer literacy) are still an issue, especially among students in the provinces," said Ibrahim.
Ibrahim said these problems are now being addressed by the government by offering scholarships to students for English proficiency and computer skills.
Lem Braña, outgoing president of the Philippime Computer Society, said the organization, together with CICT, is now making recommendations in addressing the said problems including the introduction of a better curricula geared towards the improvements of IT standards and literacy.
PSIA’s Quimson meantime agreed that “the level of skills of the graduates and the standards of the industry do not match".
Skills training offered by the government are a welcome assistance to the industry, she said.
This year, the BPO sector expects service exports to reach $7.5 billion to $8 billion from only $6.1 billion in 2008. GMANews.TV
Speaking on the sidelines of the 13th ICT Professionals’ Congress, Mon Ibrahim commissioner for cyber services of the Commission on Information and Communications Technology’s (CICT), admitted that with the recent economic meltdown weakening the US economy, Philippine BPO companies are now looking for new markets to do business with.
The US has been the industry’s main source of revenues and contracts. Among the new markets that local players are looking to reach are Japan, Europe, Australia and New Zealand.
In Japan alone, Ibrahim said there is a $5-billion potential market that can be tapped by Philippine-based BPO companies.
Europe, Australia and New Zealand are also lucrative sources of new contracts and capital, he said.
“We are continuously looking for new markets and we have identified Japan, Europe Australia and New Zealand as possible markets," Ibrahim said. “This will help further increase our market share (of the outsourcing business)," he added.
At present, Ibrahim said the Philippines enjoys 15 percent of the global outsourcing business, trailing behind India and Canada.
Ibrahim said despite the global economic meltdown, the Philippine BPO sector is still growing. In fact, he said, the BPO players are looking for possible expansions to the locations outside of Metro Manila and Metro Cebu, which were the center of the first wave of BPO investments in the country.
Among new locations being prepped for the industry are Laguna, Cavite, Iloilo, Bacolod, Cagayan de Oro, among others.
In the case of the software industry, Bettina Quimson, a member of the board of directors of the Philippine Software Industry Association (PSIA), said the industry is expecting minimal growth in revenues this year from a haul of $650 million in 2008.
“This year, there are 100,000 to 150,000 jobs available and it’s just a matter of qualified applicants," Ibrahim said.
The substandard English skills and computer literacy of fresh graduates contribute to the lack of qualified personnel in the industry.
“Somehow, (English and computer literacy) are still an issue, especially among students in the provinces," said Ibrahim.
Ibrahim said these problems are now being addressed by the government by offering scholarships to students for English proficiency and computer skills.
Lem Braña, outgoing president of the Philippime Computer Society, said the organization, together with CICT, is now making recommendations in addressing the said problems including the introduction of a better curricula geared towards the improvements of IT standards and literacy.
PSIA’s Quimson meantime agreed that “the level of skills of the graduates and the standards of the industry do not match".
Skills training offered by the government are a welcome assistance to the industry, she said.
This year, the BPO sector expects service exports to reach $7.5 billion to $8 billion from only $6.1 billion in 2008. GMANews.TV
