Aquino Forecasts a $100B Profit from BPO in 2020

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Manila, Philippines— More than a sunshine industry, the business process outsourcing (BPO) industry is expected to generate as much as $100 billion by 2020, according to President Benigno Simeon Aquino. The bold projections were made during the opening of three new IBM facilities in UP Ayala Land Techno Hub in Quezon City last December 1, 2010.

Aquino said that the government is expecting about $12 to $13 billion in revenues from the industry by 2011. “By 2020, profits are expected to rise to as much as $100 billion, comprising 20 percent of the market share in the global industry,” he further added.

With this prospective growth, the government has allotted about Php 62 million for the promotion of the country’s Information Technology- BPO (IT-BPO) industry. Furthermore, promotional activities for the industry will be comprised of the following: Talent Caravans, Pilot Run for National Competency Assessment Test for Entry-Level BPO Talent, Expanding Learning on IT Services or ELITES Teacher Training, and Capacity Building for the Health Information Management Outsourcing Industry.

The BPO industry has already employed about 550,000 individuals for 2009 alone and is continuously generating new jobs and careers for thousands of professionals within the country. To date, the industry was able to generate about 10.2 percent of the growth in services that makes up about 49.5 percent of the country’s gross revenue.

On the other hand, IBM country manager, James Velasquez, said that the expansion was due to the continued commitment of the company to the country. With over one million client employees in 84 countries, the expansion has strengthened the IBM’s service delivery capability in the Philippines.