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Industry Research : BPOs Want Perks to Offset Cost Advantage Lost to Strong Peso
The business process outsourcing industry wants "constant" and predictable incentives to help industry players offset the cost advantage that India has over the Philippines.
The Business Process Association of the Philippines president Benedict Hernandez, also president of the Contact Center Association of the Philippines, said the cost advantage of India in BPOs has widened to 20 percent in 18 months from 6 to 20 percent because the peso has strengthened and the rupee has depreciated.
BPAP said the non-contact center side of the BPO industry is growing faster, more than double what the call center side is chalking up.
Hernandez said as the BPO sector has been beating its 15-percent growth every year, the stretched target of 20 percent year-on-year is possible as long as the challenges faced by the industry are addressed.
One of these is the need for predictable incentives for the industry which could offset the currency changes.
Hernandez said the fast growth has been noted in non-call center business has been rebalancing the contact center business. These are in the areas of finance and accounting, human resource processing, procurement and logistics; captive, creative or knowledge processes and healthcare management services.
Where there used to be 90 percent of BPO workers in contact centers, this has gone down.
A third of the 638,000 workers in BPOs in 2011 are in non-call centers.
"The game plan is to keep diversifying our services and our markets," said Hernandez.
"The challenge is to ensure supply talent, cost competitiveness and a predictable environment," he added.
Along with a sustained regulatory environment, Hernandez said the BPO industry should ask the government to address perceived risks in disaster as well as peace and order.
Hernandez said the BPAP hopes to double the workforce to 1.3 million and have it generate revenues of $25 billion by 2016.
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, September 10, 2012