“The outsourcing market is positioned to continue to thrive and grow, but the relative positions of the respective players are changing. If current trends continue, China is on target to overtake India as the dominant BPO player, potentially within the next two to three years,” said XMG Global in its mid-year report on the outsourcing industry.
The consulting firm said China has exhibited the fastest growth among the top three outsourcing destinations, expanding 43.5 percent and 63.6 percent in the last two years.
It ended last year with an outsourcing industry grossing $45.7 billion, and is forecast to close this year with $53.8 billion, for a 33 percent year-on-year growth.
“This reflects how political instability in the US has a smaller impact on China, which has actively sought out customers in the Asian market. Industry volume for India and the Philippines has historically focused on gaining share of US outsourcing,” said Anna Juanillo, research manager at XMG Global.
The defeat of a bill in US Congress meant to restrict outsourcing should however provide some respite for outsourcing destinations like the Philippines and India, she said.
“Looking at American political shape-shifting, it would be best to view this development as a ‘for now’ solution; meaning the ebb and flow of political will seem very much a direct factor of which political party is in power,” Juanillo said.
 |
| Source: XMG Global |
“In 2010, India's revenues were $18.6 billion more than China, but by 2012 the difference was down to $9.4; a significant reduction,” said Juanillo.
The Philippines’ share of outsourcing revenues stood at $11 billion last year, and is seen rising to $12.7 billion this year, for a year-on-year growth of 15.7 percent, which is twice the forecast for India but less than half that for China.
The Philippines outsourcing industry expanded by 25.4 percent and 23.6 percent in the last two years – the rates also pointing to easing growth.
“These numbers collectively show a gradual chipping away of India's stronger historical dominance; though time will tell if it will be significant. At this point, China and the Philippines are each showing ‘real growth’ in terms of total market share, as compared to India's current dominant position,” said Juanillo.
“The Philippines modest contribution rose from $8.9 billion to $12.7 billion; a not-so-insignificant 43 percent increase in revenue. That is only slightly lower than China's 50 percent revenue increase. This trend suggests new opportunities for other players to gain market share as well since the growth of the offshoring outsourcing industry will remain relentless,” she said.
The Business Process Association of the Philippines aims to grow into a $25 billion industry by 2016, employing 1.3 million by that year. The industry employed 638,000 last year on revenues of $11 billion.
For this year, BPAP is projecting revenues of $13 billion, of which about $6 billion would go to the industry’s workers as salaries.
A survey by the Bangko Sentral ng Pilipinas showed that BPO employees in 2010 received on average P378,824 in annual compensation.
Besides call centers - in which the Philippines is the world’s top provider and accounts for at least half of the local BPO sector’s revenues – other outsourced services in the country include back-office, creative, information technology, software development, health information management, among others.
Source: Interaksyon
No comments:
Post a Comment