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Industry Research : BPOs to Spend P247B in Wages this Year
Here's proof of how flourishing the country’s call-center industry has become. This year, according to the Business Processing Association of the Philippines (BPAP), the business-process outsourcing (BPO) sector is expected to pay out a total of P247 billion in wages this year, which if put into perspective, is equal to 14 percent of the national government’s P1.816-trillion spending program this year and larger than the budgets of the top five departments. The figures were revealed by House Deputy Majority Leader Roman Romulo on Wednesday.
Romulo said the P247 billion is also 53 percent greater than the P161 billion in combined annual benefits paid out by the Social Security System (SSS), Government Service Insurance System (GSIS) and Philippine Health Insurance Corp. (PhilHealth) to their members.
The SSS and GSIS paid P76 billion and P50 billion, respectively, in benefits to their members in 2011; PhilHealth paid P35 billion, according to Romulo.
He said the BPO industry is projected to rake in up to $27 billion in annual revenues and directly engage some 1.3 million Filipino workers by 2016. It posted $11 billion in revenues on a labor force of 638,000 in 2011. Quoting the BPAP, Romulo said this year, the sector hopes to create 126,000 new jobs and generate $2 billion in extra earnings.
The industry encompasses contact- center services, back offices, medical, legal and other data transcription; animation, software development, engineering design and digital content.
"BPO firms on the average spend around 40 percent to 45 percent of their revenues to compensate their staff. This is understandable since the industry is basically adding high-value labor services," Romulo said.
At this rate, BPO providers would be disbursing approximately $5.85 billion in salaries this year, on projected industry revenues of up to $13 billion, he said.
"No matter how we look at it, P247 billion represents a huge amount of money being coursed through the economy every year, and helping to drive consumption spending," Romulo said.
The legislator said the consumption spending in turn has helped create recurring demand for goods and services, thus perking up domestic industries.
The Department of Education is spending P238.8 billion this year; Department of Public Works and Highways, P125.5 billion; Department of National Defense, P107.9 billion; Department of the Interior and Local Government, P101.4 billion; and the Department of Agriculture, P54.1 billion.
Posted by Veronica Silva Cusi, news correspondent
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Published: Tuesday, June 26, 2012
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