Industry Research : BPOs Made $13.34B in 2013 Export Services
The fast-growing business-process outsourcing (BPO) industry in the country is expected to have increased its earnings by almost $2 billion compared to last year’s level from services rendered to companies abroad.
According to the latest projections announced by the Bangko Sentral ng Pilipinas (BSP), the government was anticipating a 15-percent growth of export revenues from the $11.6 billion seen in 2012. This means that the BPO industry export revenues hit $13.34 billion in 2013. The central bank, likewise, said this pace of growth would likely continue until 2014, which means it would also expand by about 15 percent to hit about $15.34 billion this year.
These export receipts cover all the earnings or revenues of the industry from services rendered to companies outside the Philippines. Domestic revenues, or the earnings of the industry from the services rendered for Philippine companies, are not included in the projection.
Likewise, the investments made by foreigners in the country in building new BPO centers are not included in this projection, as they are captured under the foreign-direct investment statistics. These BPO industry export receipts are under the services segment of the Balance of Payments measured by the central bank.
BSP Director for the Department of Economic Research Zeno Abenoja said the expected growth in the BPO sector is on the back of the expanding nonvoice BPO segments in the Philippines, as well as the continuous demand and the government support the industry is getting.
"The projections were actually done in consultation with the industry. As we know, the BPO in the Philippines has been, historically, concentrated on the voice but we are seeing a gradual shift to other segments of the BPO industry, including, for example, transcription, animation and other bank-office transactions from financial and nonfinancial…So those were taken into account," Abenoja said. Abenoja further said the government’s support in terms of tax treatment on capital and the presence of call-center training grounds provided by the government also helped boost the revenues that the country got from the industry.
"There is also a continuous demand from foreign companies for outsourcing services to reduce their operation costs, including the advanced economies. That continued demand will be a major driver for the BPO industry moving forward," he also said.
The central bank also said the receipts that the country receives from travel and tourism services are expected to grow steadily in 2013 and 2014. The BSP said the $4-billion travel receipts in 2012 might have grown by 20 percent and hit $4.8 billion in travel revenues in 2013. This is the same growth rate projected for 2014, which means that tourism receipts would hit $5.76 billion by the end of this year.
Abenoja said the uptick in tourist spending in the country is mainly driven by the observation of increased growth in advanced economies, which are also the top sources of tourists in the Philippines. With the favorable economic conditions in their country, tourists mainly from the United States and Japan are said to better afford more expenses in their country visits. He also said this was in line with the government’s efforts to promote tourism and consistent with what is being projected by the Department of Tourism.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - All Customer Touchpoints Need To Provide Service
More Editorial From Bangko Sentral ng Pilipinas
Published: Monday, November 4, 2013