CEBU, Philippines - With the rapid expansion of business process outsourcing companies in Central Visayas, the National Economic and Development Authority projected sustainability and growth from the industry in the coming years.
NEDA Assistant Regional Director Efren Carreon said during the Micro, Small and Medium Enterprise Conference that investors remain bullish in Central Visayas due to the region’s economic drivers which include information technology/BPO, tourism, real estate development and retail trade.
He further said that the IT/BPO industry is rapidly growing these years with a growth average rate of 46 percent annually and will sustain its development in the next five years.
He noted that in Cebu alone, it was recorded that the outsourcing revenues in 2005 was recorded more than US$200 million and increased to US$1.3 billion in 2011.
Due to the increasing demand for outsourcing, he added that the region has accepted expansions from BPO companies in other provinces.
Carreon cited that way back in 2004, there were only four outsourcing companies in the Visayas which are all located in Cebu but after eleven years, there are already over 100 outsourcing companies registered.
In 2010, Cebu was ranked ninth in the top ten list of emerged outsourcing cities along with Bangalore, India which ranked first, Manila, Philippines at rank 4, Dublin, Ireland at rank 7 and Shanghai, China which ranked tenth.
“BPO will be with us in the future and will be helping us a lot in poverty reduction. It is considered as a driver for economic growth, not just for employment opportunities but also for higher compensation to workers,” he stated.
Based on the 2008 Annual Survey of Philippine Business and Industry, the average monthly compensation for an employee from a BPO establishment is worth P27,808.
The highest monthly rate recorded was P66,387 for workers engaged in software publishing and P12, 322 as the lowest for those involved in medical transcription activities.
“This world tells us that workers in BPO are getting good compensation,” he added.
Aside from the IT/BPO industry, Carreon noted that the expanding tourism market also contributes to the economic growth of the region.
He said that the total number of tourist arrivals increased from not less than two million visitors in 2007 to 2.5 million tourists in 2011.
He further said that the remittances of Overseas Filipino Workers grew by 7.2% last year and 5.4% in the first quarter of 2012 in which 30-40% of remittances are invested in real estate properties.
He added that the sustained interest of OFWs to such investments made the real estate industry as one of the key growth drivers of the region along with the added rapid expansion of the industry players in Central Visayas.
Meanwhile, Carreon noted that the growing outsourcing industry, influx of domestic and foreign tourists and continuous inflow of remittances also enable the expansion of the consumer base with higher purchasing power, thus making the retail trade industry also contributory to the economic development of Region 7. (FREEMAN)