Industry Research : Government Grants Over P100 Million in Subsidies to BPOs
The national government extended over P100 million in subsidies to various business process-outsourcing (BPO) activities, according to data released by the Philippine Statistics Authority (PSA).
In 2012 PSA data showed the government granted P119.1-million subsidy to the BPO industry, particularly to call centers (voice) and computer-programming activities.
The BPO voice activities received the bulk of the subsidies worth P118.8 million, while the computer-programming activities received a total of only P329,000.
"Subsidies are special grants received from the government in the form of financial assistance, or tax exemption, or tax privilege to aid and develop an industry," the PSA said.
However, data showed that, while voice remained the BPO sector that employed the most workers and generated the most profit, employees received higher annual compensation per worker in the software-publishing sector.
The PSA said employment generated by BPO activities were reported at 436,500 in 2012. The bulk of the jobs, or 83.5 percent, were in call-center activities, which employed 364,454 of the total BPO workforce.
Further, the total income generated by BPO activities in 2012 reached P338.7 billion. Call center activities topped in income generation, comprising almost three-fourths, or 73.8 percent of the total income earned by BPO activities worth P249.9 billion.
Total compensation paid by BPO activities in 2012 amounted to P154.9 billion, equivalent to an annual compensation of P354,932 per paid employee.
Call-centers activities paid the highest total compensation of about P120.7 billion, accounting for more than three-fourths, or 77.9 percent, of the total compensation paid by BPO activities.
However, employees in software publishing received the highest annual compensation per employee at P701,985. Compensation is the sum of salaries and wages; separation, retirement, terminal pay, gratuities and others; and employer’s contribution to social security.
This was followed by workers in computer-programming activities at P597,121, and computer consultancy and computer facilities management activities at P515,715.
The data is based on a special tabulation from the preliminary results of the 2012 Census of Philippine Business and Industry for total employment 20 and over, specifically the sections on Information and Communication and Administrative and Support Service Activities.
A total of 1,058, or 89.51 percent, responded out of the 1,182 samples drawn for BPO establishments with total employment of 20 and over.
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, June 2, 2014