Philippine Outsourcing Industry Revenue Seen To Hit US$21bn

MANILA, PHILIPPINES – The business process outsourcing (BPO) industry in the Philippines continues to grow at a rapid pace, with experts forecasting the industry to generate revenues of over US$21 billion this year, according to a report published by the Philippine Star.

BPO Philippines

The report quoted Pinnacle Real Estate Consulting Services Inc as saying that the country’s BPO industry will grow higher this year from last year’s US$18.9 billion and will even expand in 2016, where it is expected to post revenues of US$25 billion.

In terms of employment, the consulting firm revealed that the BPO industry in the Philippines will end 2015 with about 1.2 million employees. Another 100,000 workers are expected to be added into the industry next year.

The BPO’s growth will not only benefit the industry as other sectors, such as real estate and retail will also feel the positive effects of the country’s vibrant outsourcing landscape.

BPO revenues and remittances from Filipinos working abroad are two of the country’s top economic contributor. While remittances for overseas Filipinos are not expected to subside in the coming years, BPO revenues will grow at a faster pace and overtake the remittances by 2020.

Philippine Credit Rating

Due to the high levels of remittances from Filipinos working abroad the revenue from the BPO industry, the Philippines recently received credit rating upgrade from Fitch Ratings.

The London-based credit rating agency cited the country’s external finances to continue to be key credit strength for the Philippines. The agency said the country’s rating could possibly get another upgrade in the next 12 to 18 months.

“The Philippines’ positive outlook is driven by a steady strengthening in the country’s structural fundamentals, improvements captured in international measures of governance standards and international competitiveness and reflected in [the] Philippines’ strong macroeconomic performance,” Fitch said. – BusinessNewsAsia.com

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