GOOD NEWS PILIPINAS - February 13, 2009

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110,000 new BPO jobs in 2009

Prospects are bright for the Philippines’ business process outsourcing (BPO) and other services sectors in 2009.

The local BPO industry is still expected to generate 100,000-110,000 new jobs this year, in addition to the around 400,000 already in place, according to the Business Process Association of the Philippines (BPAP).

ExcelAsia, a full-service human resource solutions company reported an increase in workforce demand among its outsourcing clients who seek to fill up 4,000 new outsourcing jobs each month.

Taipan Andrew Tan, chair of publicly listed Alliance Global Group Inc., also announced his company was spending a total of P20 billion for the construction of various projects targeted at the office, residential and hotel markets, expecting to create 50,000 new jobs in the construction sector this year.

BPAP chief executive Oscar Sanez said jobs would still abound in the BPO space this year, considering that cost-reduction considerations could prompt more companies abroad to bring some of their functions offshore.

The local BPO industry should also register a growth of 20-30 percent, with revenues seen hitting around $7.8 billion, Sanez said in a presentation during the e-Services Global Sourcing Conference and Exhibition.

He said last year resulted in revenues of almost $6.1 billion and 74,000 new jobs.

“The momentum we’ve established is strong, and that’s something we’d like to pursue. Globally, India holds 38 percent of the BPO market, while the Philippines has 7 percent of the pie. We’re gunning for 10 percent by 2010,” he related.

To be able to hit its targets, Sanez said the local BPO sector would focus on driving awareness and interest among potential clients and on driving competitiveness through talent development.

Among the activities that BPAP and its partners planned to conduct this year to reach those goals were more English-proficiency trainings, BPO investment missions and conferences, a standard assessment test for the BPO industry, a scholarship program, and leadership training for middle managers.

The outsourcing sector remains strong and can potentially help laid-off workers find new employment opportunities despite the global economic crisis, ExcelAsia president Rita Trillo-Ugarte agreed. She explained that a different industry background is not a hindrance to beginning a career in BPO.

“Individuals with export, retail, or electronics industry backgrounds will fit into most of our clients’ needs,” Trillo-Ugarte said.

She said her company’s existing partnerships were being renewed and new clients were expected to relocate in the country. This resulted in the establishment of new ExcelAsia sites in Sta. Rosa and soon in Eastwood, in addition to its existing sites in Makati, Alabang, Cebu, and Bacolod City.

ExcelAsia currently has over 50 local and global clients from various industries.

“ExcelAsia is in need of almost 4,000 jobseekers a month for our clients, who all seem to be ramping up and expanding despite the crisis,” Trillo-Ugarte said. “We expect more and more companies to outsource their service-oriented businesses to BPOs in the Philippines.”

AGI’s Tan announced that the company would finish this year more than 100,000 square meters of BPO office space in five office buildings that the company was putting up in Eastwood City, McKinley Hill and Newport City.

This will accommodate around 14,000 jobs in the BPO sector beginning this year until 2010, Tan said.

On top of that, AGI is hiring 3,500 new people through its subsidiary, Travellers International Hotel Group Inc., for two hotels that it is opening this year—Marriott and Maxim’s.