The Philippines’ $26 billion outsourcing industry expects to continue growing despite the risks brought by the coronavirus pandemic but sees a three-year government support plan as key to boosting its competitiveness.
The industry has shown a “tremendous resilience,” Rey Untal, head of the Philippine Association of outsourcing companies, said in an interview in Manila. “We are cautiously optimistic about sustaining some level of growth for this industry in the near future.”
With a high level of English proficiency, a young population, and cheap labor, the Philippines has been one of the global leaders in business process outsourcing. But it continues to grapple with rising competition, having slipped to sixth place in advisory firm Tholons Inc.’s index of attractive outsourcing destinations, down one spot from last year.
The Philippines’ $26 billion outsourcing industry expects to continue growing despite the risks brought by the coronavirus pandemic but sees a three-year government support plan as key to boosting its competitiveness.
Outsourcing revenue, a key pillar of the country’s economy, rose 7.1% in 2019, according to May data from Untal’s group, officially known as the IT & Business Process Association of the Philippines. The association has penciled in 3.5%-7.5% annual growth through 2022 but expects to get the result of a commissioned study next month that will recalibrate targets and map out a strategy for the industry over the next few years.
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https://www.bloomberg.com/news/articles/2020-10-23/philippines-to-keep-outsourcing-engine-humming-despite-crisis