Aquino sees $100-B BPO profits in 2020

Aquino sees $100-B BPO profits in 2020

Philippine Daily Inquirer
First Posted 07:36:00 12/02/2010

MANILA, Philippines—President Benigno Aquino III expects the business process outsourcing industry to generate as much as $100 billion in profits in 2020.

Aquino made the bold forecast during the opening of three new service delivery facilities of IBM, the US-based information technology firm, at the UP Ayala Land Techno Hub in Quezon City.

From being a “virtual non-entity” in 2001, the BPO sector has become a sunshine industry, generating more than $9 billion in revenues, and employing close to 550,000 in 2009 alone, Aquino said.

He said the sector has contributed 10.2 percent of the growth in services that makes up about 49.5 percent of the country’s gross domestic product (GDP).

He said the BPO sector has already contributed 3.2 percent to GDP growth in the second quarter of 2010.

“The government predicts around $12 billion to $13 billion in revenues by 2011. By 2020, your profits are expected to rise to as much as $100 billion, comprising 20 percent of the market share in the global industry,” he added.

James Velasquez, IBM country general manager, said the expansion strengthens IBM’s service delivery capability in the Philippines, which serves more than one million client employees in 84 countries.

“This expansion demonstrates our continued commitment to the country,” Velasquez said.

Aquino’s convoy was greeted with jeers and protest placards as it made its way to the technohub.

The President had to be taken to another entrance so he could make it in time to deliver his speech.

The protest was sparked by students objecting to supposed cuts in the budget of state universities and colleges in 2011.

Angry students confronted Aquino over the alleged budget cuts.

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