IT outsourcing noted as leading BPO sector

Posted on April 12, 2012

INFORMATION TECHNOLOGY (IT) outsourcing has emerged as the fastest-growing business process outsourcing (BPO) segment in terms of revenue, an industry group yesterday said.

In a statement, the Business Process Association of the Philippines (BPA/P) said IT outsourcing revenues rose 37% to $993 million last year, compared to the industry’s growth of 24% to $11 billion.

“Anecdotal indicators also point to strong demand for Philippine IT services into 2012,� the statement said, noting that employment in the sector totaled 49,908 last year.

BPA/P also said that non-voice and knowledge process outsourcing sector booked “over $2 million,� a 24% increase from 2010. The sector employed around 130,000 as of last year.

Revenues of the more conventional voice sector, meanwhile, increased 21% to $7.4 billion.

“Already the largest contact center hub in the world, the sector posted a healthy 21% growth in 2011 and remained the largest sector... at 65% of total industry,� the BPA/P said.

Game development earned $8 million, up 13% annually, and employed 1,400 last year.

“The Game Developers Association of the Philippines (GDAP) reported that their first competition also uncovered many young talented game developers,� the statement read.

“GDAP members have also produced games that have gained followers in the online world.�

However, animation revenues dipped 10% to $128 million in 2011, even as this segment kept its head count at about 8,600. “The sector lost out to some contracts as global competition heated up in back-room animation services, particularly from countries like China that subsidize animation operations,� statement said.

BPA/P said its first-ever survey of health care information management outsourcing showed the segment earned $277 million and employed 24,700. -- CHCV