The continued strength of the peso may be a problem for the country’s BPO sector, but it is not enough reason for the industry to revise its growth target for 2013.
The BusinessMirror recently reported that while the Information Technology and Business Process Association of the Philippines (IBPAP), formerly known solely as Business Process Association of the Philippines (BPAP), acknowledges that they are indeed affected by strong peso, they remain optimistic about the sector’s future and will thus stick with the growth target set two years ago.
Gillian Joyce Virata, the senior executive director of IBPAP, told the publication that their recent survey revealed many outsourcing firms are significantly affected by the strong peso. However, she noted that these were mostly those that came in during the time when the exchange rate was P45-to-$1. Virata said that despite the strong peso and the de-location that results from it, there are still many entrants to the country’s outsourcing sector.
Considering the previous success of the BPO sector, IBPAP is positive that the 2013 target will be met even with the strong peso as a hurdle. The sector was said to have $13.4 billion in gross revenue last year, a figure that is 22% more than their gross revenue in 2011. Nonetheless, that figure is currently being reviewed by the IBPAP.
IBPAP’s Chief Executive Jose Mari Mercado also says that they will also stick with their 2016 target, which is $25 billion. He is counting on the key areas outside Metro Manila which are burgeoning outsourcing locations as well as government support to meet their targets.