Philippine call centers and other outsourcing firms exceeded revenue and hiring targets last year and expect even more growth in 2023, as global businesses continue to seek cost-cutting measures.
According to the IT and Business Process Association of the Philippines (IBPAP), the economically vital business process outsourcing (BPO) industry, which provides support services to companies ranging from Amazon to Zoom, revenue increased 10.3% to $32.5 billion, and staff count increased 8.4% to 1.57 million.
Financial services, health care, retail, technology, and telecommunications fueled growth, according to the report. The trade association predicted a 7% to 10% increase in revenue and a 7% to 8% increase in headcount.
According to IBPAP, the industry’s workforce could reach 1.7 million this year, with revenue reaching $35.9 billion, representing 8.3% and 10.5% growth, respectively.
The group, citing its own survey, said 83% of outsourcing companies expect to post growth in 2023 “despite a potential global recession,” while 17% were “neutral with their forecasts.”
According to the survey results, organizations will continue to outsource and use global business services to cut costs.
The sector’s latest good news is a better-than-expected performance in 2022. The government allowed PBO companies with work-from-home arrangements for their employees to keep tax breaks in September. Many outsourcing firms operated under an investment regime that required employees to work on-site in order to receive tax breaks, and the hybrid work setup was initially a temporary measure implemented in response to the pandemic.
IBPAP pledged to generate 2.5 million jobs and $59 billion in annual revenue by 2028, the end of President Ferdinand Marcos Jr.’s six-year term.
The lofty goals come as the call center industry faces a number of challenges, including automation, difficulty hiring qualified workers, and rising competition from other outsourcing destinations such as India, Poland, and South America.
“We still have a long way to go, but [the] Philippine [industry’s] stellar performance in 2022 brings us closer to generating 1.1 million new jobs for Filipinos,” said IBPAP President and CEO Jack Madrid in a statement.
“It’s also a testament to the collective efforts that the private sector, government and academe have exerted to retain the industry as an indispensable pillar of the economy,” he said.
Source : asia.nikkei
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