Philippine outsourcing has been showing signs of getting a lower BPO revenue. This means that the business process outsourcing (BPO) in the Philippines could affect the economic growth of the country over the next two ears, this is according to Credit Suisse.
The BPO industry in the Philippines has been extremely helpful in boosting the economy of the country. Because the Philippine outsourcing industry is getting in trouble, it will greatly affect the economy if anything drastic goes down.
According to Michael Wan, an economist at Credit Suisse, said that the BPO industry in the Philippines slowdown will have a negative effect on the GDP, current account and the peso. It is said that the outsourcing industry in the Philippines is facing a combination of cyclical and structural headwinds.
On top of these automations are increasing the risk of competitiveness, revenue growth, and staffing needs. According to Credit Suisse about 50 to 55 percent of the Philippine outsourcing can be automated.
In addition to this banks are expecting a slower growth in the BPO industry in the Philippines. To be exact they are expecting it to drop to a 3.7 percent in full-time employment between 2017 and 2022. This is compared to the 12.4% compounded annual growth rate that was recorded the last five years.
“Since automation will reduce the labor component of the total costs, it also could reduce incentives for offshoring to low labor cost economies like the Philippines,” it said.
Credit Suisse predicts that the declining growth of the BPO industry in the Philippines could drag down the economic growth of the Philippines in the next two years.
Keep updated about the BPO industry here in the Philippines here at Prime Outsourcing! If you’re looking for someone to deliver task that you want to outsource you should check us out! Here at Prime Outsourcing your needs is our prime priority.