The Philippines IT-BPM (Information Technology and Business Process Management) is valuated at around $23 billion but like all industries; it is facing modern challenges born from domestic and international as well as the evolving modern business world.
First is the rising destination which is China for BPO outsourcing. China, already a world power, has experienced a surge in its tech scene through the English globalization of its companies, the modern facilities for Shared Services in its cities and the government changing its stringent stance on investors from the west.
China has also invested in a large number of BPO-Tech parks across its territory and through a government funded university program, are preparing a large population of BPO skilled workforce from Chinese millennials. China is aiming for a $200 Billion outsourcing revenue by 2020.
Also, the IT-BPM in the country is also looking to fight for the tax incentives long enjoyed by the industry as the finance department plans on cutting back on the preferential tax rate enjoyed by executives and regional headquarters for BPOs.
“We need to put our act together,” Rey Untal, head of the Philippine association of outsourcing companies, said in an interview in Manila as posted in Business World Online. “The other countries know how big this IT business process outsourcing pie is globally and they want to increase their share. This is not a static world.”
“Business process outsourcing is very important for dollar supply, especially now that the country might slip into a current-account deficit,” said Michael Enriquez, chief investment officer at Sun Life of Canada Philippines, Inc. in Manila as quoted by Business World Online. “There’s a lot of threats to the growth of the sector, but BPOs will continue to prosper here as long as there’s government support.”
In facing the challenges, the Philippine government and the BPO Alliances in the Philippines must work on a roadmap for not only buffering the challenges but also set a roadmap to sustain the industry as we march into the 2020 decade.
If you, as a decision maker are reading this, the Philippine BPO sector is robust and has weathered the challenges for over two decades. Much like the country’s buoyant economy, the BPO sector is comprised of dynamic providers such as we, the Global TeleForce Ltd. group that utilises streamlined methodologies in order for foreign companies to successfully establish outsource or offshore operations in the country. Through a strategic approach in deployment, intake, and transition, we suppress the risks associated with outsourcing in order for the setup to realize its true business value. Call us today 1300 77 88 62 or email email@example.com to get started with outsourcing.
Publish Date: August 17, 2017
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