BPO Firms in India Plan to Extend Their Operations in Philippines

According to a Trade Official, seven business processing outsourcing firms in India are planning to expand their operations in Philippines in the days to come. It is expected that such leap would create a whopping 5,000 jobs in the industry, which is indeed impressive. According to Fe Agoncillo Reyes, Trade Assistant Secretary, the expansion plan was announced at the ASEAN-India summit held in December last year in India.

With the news of the U.S. government reaching an agreement to ward off the fiscal cliff in the stock market, the Philippine stock market ended just six points short to reach a dramatic 6000 level. As of today, the trading volume reached almost 2.34 billion shares worth approximately $184 million, with almost 121 stocks advancing, 43 remaining unchanged and only 47 shares declining.  

According to trade analyst Justino Calaycay at Accord Capital Equities Corp, the agreement of the U.S. government was met with significant expectations and has boosted the confidence of the investors. It is expected that Philippines Stock Exchange will witness a steady growth in the months to come as well. This growing investment trend has been leveraged by the Indian BPO companies to extend their operations significantly in Philippines Stock Exchange market, catering to the needs of the investors. The seven business process outsourcing firms in India will expand their PHL operations mostly in non-voice sectors like healthcare, finance, medical services, and creative services, according to Fe Agoncillo Reyes.

According to a report published earlier, healthcare information management outsourcing is among the fastest growing sectors in the local IT-BPO market in Philippines, which was expected to hire about 43,000 employees and generate revenue of $433 million in the year 2012. Particularly catering to the growing healthcare information needs, the Indian BPO firms will concentrate on expanding their PHL operations in this industry as well as in medical services.

At the same time, with the Philippines stock market soaring high, the BPO firms also plan to extend their business process outsourcing services in the stock exchange as well, catering to the growing financial information needs of the investors, who have shown a higher trend for investing in Philippines stock market. Besides healthcare and finance, the seven BPO firms from India are also planning to expand their PHL operations in the area of creative services among others; a growing sector in Philippines.

With the aim to almost double the revenue to a dramatic $25 billion, and create more than 1.3 million jobs by the year 2016, the Philippines IT-BPO industry has particularly pinpointed the high growth areas like creative services, accounting and finance, health services, IT outsourcing, human resources, multilingual BPO, engineering, and medical services. With more importance to these growing sectors, it is expected that the seven BPO firms from India will create almost 5000 jobs in the IT-BPO industry by expanding their PHL operations particularly in these sectors. Nevertheless, the revenue generated from such expansion are also expected to be significant.

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