Services, the information technology/business process outsourcing (IT-BPO) sector in particular despite the threats of slowing down, will amass half of the total exports by 2022, as per the executive director of the Bureau of Export Managing Bureau, Senen Perlada.
Perlada stated that from the present share of 32%, service exports are expected to maintain the upward growth at double-figure rates in comparison to merchandise exports.
Perlada added that the new edition of the Philippine Export Development Plan 2018-2022 is seeing that services will take half of total exports by 2022.
Perlada is playing down the effect of the subdued growth of IT-BPO sector to which comprises 65%-70% of total services, stating that the country will still acquire a significant portion of the world’s outsourcing business and that it is showing no signs of slowing down.
This year alone, service exports are expected to grow 10%-11% ranging from $34.5 billion to $34.9 billion.
“A lot of people fear what happens with the IT-BPO industry but eventually it will be a business decision (on the part of the players) and ahow good we are able to deliver services,” Perlada stated.
“No matter what they say about what the US (firms will do), it is still a business decision… and we are still able to capture a lot of the business),” added Perlada in reference to the threat of US’ America-first policy which could discourage US companies from outsourcing.
“We are still large,” stated Perlada adding that Philippines is expected to acquire 15% market share of the world’s outsourcing business.
He also added that the Philippines is also expanding its markets from solely North America and now has up-and-coming destinations, New Zealand, Australia, and even Japan. And as per Perlada, this is expected to go even wider.
Coefficients Co. Ltd, a local business process outsourcing company, has diversified their client portfolio since its inception having clients in Singapore, Canada and the UK.
Last year, the IT-BPO industry offered direct employment to about 1.15 million people, and was able to pull in $23 billion in revenue.
The service export industry is expected to hit $79.7 to $80.4 billion this year, a 6.5%-7.5% growth with merchandise still acquiring the majority, ranging from $45.1-$45.6 billion, but have a slower growth of 4-5%.
Now that the war in the south has subside, it is expected that more investors will be enticed to invest and outsource in the Philippines, and despite the threat of Trump’s America-first policy, the country is now diversifying the market having investors in Australia and Japan.

Author's Bio: 

Founded in September 2011, Coefficients Co. Ltd. is currently headquarted in Lucena City, Quezon Province, Philippines and is one of the province’s leading business process outsourcing of customer interaction and back-office services