MAKATI CITY—The country’s business process outsourcing (BPO) is projected to grow by 30 percent this year, an executive of a leading BPO firm said.
SPi Global president and chief executive officer Malik Parekh said that based on statistics, the country’s BPO sector is growing faster than the others globally, or around 15 percent higher than the global rate.
He said this figure is a welcome development especially for BPO companies based in the Philippines.
Likewise, Parekh predicts that by 2016, revenues coming from the BPO sector worldwide will hit the US$124 billion mark.
This is significantly higher than the US$45 billion recorded in 2011.
Parekh said he expects the BPO labor force to hit the 1.3 million mark by 2016 due to the opening of new markets in Western Europe and Asia-Pacific region.
The country’s BPO labor force currently stands at 532,000.
However, he said despite the significant BPO growth in the Philippines, Filipinos should not be complacent.
To reap the benefits of the growing market for outsourcing services, Filipinos should develop their skills particularly to meet the needs of the non-voice sector, Parekh said.
“BPO companies in the Philippines should re-orient their services in order to tap into this market as this service heralds the new era of the call center industry,” he said.
Majority of BPO companies have reported that 58 percent of their revenues are coming from the non-voice sector compared to the 42 percent generated by the traditional voice-related services, he noted.
One thought on “BPO industry to grow by 30% in 2011”
India’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.
India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.
India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.
Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.
A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Indian market. India has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Indian economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in India.