Freeman Cebu Business

ICT sector targets 40% job growth in provincial BPOs

Carlo S. Lorenciana - The Freeman

CEBU, Philippines - Provincial areas outside Metro Manila should account for 40 percent of the total targeted employment in the business process outsourcing (BPO) industry in the Philippines, a government official said.

Monchito Ibrahim, deputy executive director of the Department of Science and Technology-Information and Communications Technology Office, at least 30-40 percent of jobs generated by the industry should be coming from BPO centers outside Manila like Cebu. Manila currently accounts more than 50 percent of BPO employment.

"We want to see — to achieve — 525,000 direct employment outside Metro Manila," Ibrahim told businessmen in a forum last week organized by Cebu Business Club.

 Ibrahim noted this will have a significant economic impact, saying the industry targets revenue to reach $25 billion this year.

 Overall, the information technology-BPO industry has a target to grow its workforce to 1.3 million.

 Last year, the industry's total direct employment stood at 1.2 million, Ibrahim said.

 The DOST official said that Cebu currently employs more than 120,000 BPO workers.

 Revenue from the outsourcing industry is predicted to soon overtake the value of remittances from overseas Filipino workers (OFWs), estimated to account 10 percent of annual gross domestic product (GDP).

 The BPO sector is predicted to become the country's largest source of foreign exchange earnings starting next year.

 Based on the latest report of investment advisory firm Tholons, Cebu is now the 7th most preferred global outsourcing destination from being 8th last year.

 Dumaguete City in Negros Oriental is also now on the 93rd of Tholons' top 100 BPO destinations list in 2016.

 Earlier, National Economic and Development Authority Regional Director Efren Carreon said the growing outsourcing industries in Cebu and Dumaguete will have a positive impact on employment.

 There are now nine Philippine cities in the Tholons list.  (FREEMAN)



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