BPO firms rake in P94-B profit

[Mari]

By MELVIN G. CALIMAG
http://www.mb.com.ph/articles/228573/bpo-firms-rake-p94b-profit
The growth of the country's outsourcing sector, it seems, is not showing signs of slowing down with 29 of the largest business process outsourcing (BPO) providers in the Philippines reporting a whopping P94.4 billion in combined revenues in 2008.

The revenue made by the BPO companies, mostly engaged in call center activities, was up 21 percent or P16.1 billion from the P78.3 billion they posted in 2007.

This is according to a statement released by Catanduanes Rep. Joseph Santiago, chairman of the House information and communications technology committee, who said that BPO operators have sustained double-digit revenue growth in the past year

He said the P94.4 billion in combined revenues reported by the top 29 BPO providers alone translate to almost $2 billion at the exchange rate of $1:P47.63. Overseas clients pay BPO firms in dollars.

“What is remarkable about the BPO industry is that it is highly labor-intensive. Since the industry employs a growing number of Filipinos, it also supports an increasing number of families,” Santiago stated.

Santiago, however cited the need to further build up the BPO industry through ample infrastructure support, proper human resource development, sound policy environment, adequate fiscal incentives, and effective business development.

According to Santiago, the top 29 BPO providers and their corresponding 2008 revenues are: TeleTech Philippines (P8.1 billion); Convergys Philippines (P8 billion); eTelecare (P7.9 billion); Sykes (P7.5 billion); Aegis PeopleSupport (P5.7 billion); ICT Marketing Services (P4.3 billion);

Telus International Philippines (P4.2 billion); HSBC Electronic Data Processing Philippines (P4.1 billion); Sitel Philippines (P3.7 billion); Telephilippines (P3.6 billion); Deutsche Knowledge Services (P3.2 billion); IBM Daksh Philippines (P3.2 billion); IBM Business Services (P2.9 billion);

Sutherland Global Services Philippines (P2.5 billion); JP Morgan Chase Bank N.A. Philippine Customer Care Center (P2.4 billion); Dell International Services Philippines (P2.4 billion); SPI Technologies (P2.3 billion); Advanced Contact Solutions (P2.2 billion); ePLDT (P2.1 billion); APAC Customer Services (P2.1 billion);

Cyber City Teleservices Philippines (P1.8 billion); Sitel Customer Care Philippines (P1.8 billion); Parlance Systems (P1.7 billion); ePerformax Contact Centers (P1.6 billion); Synnex-Concentrix Corp. (P1.4 billion); West Contact Services (P1.2 billion); Vision-X Philippines (P1.1 billion); Genpact Services (P1 billion); and ePLDT Ventus (P1 billion).

The 2008 revenues of the local units of the following large BPO providers were not readily available, Santiago said: Accenture, Affiliated Computer Services, Citigroup Business Process Solutions, INFONXX Philippines, Hinduja TMT Ltd., and Vocativ Systems.

Santiago also pointed out that the country has more than 400 other BPO providers that generate annual revenues of anywhere from a few million pesos to just under P1 billion.