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Philippine IT-BPO Services Industry Remains on Growth Trajectory in 2013; Exports of Services Reach US$14.2 Billion


Results of the Survey of Information Technology-Business Process Outsourcing (IT-BPO) Services conducted by the Bangko Sentral ng Pilipinas (BSP) showed that the total revenues of the industry expanded at a robust rate of 13.8 percent in 2013 to reach US$15.3 billion, from the previous year’s level of US$13.5 billion.
All the industry’s sub-sectors (namely, contact centers, transcription, animation, software development and other BPOs) posted positive growth rates in revenues in 2013. The country’s Contact Centers, which remained the global leader in voice-driven IT-BPM services, was the top revenue earner (at US$8.4 billion), accounting for more than half of the industry’s total receipts. The sub-sector was also the main driver of growth, contributing 6 percentage points to the total 13.8 percent expansion in industry revenues during the year.
Total earnings from exports of services of the IT-BPO industry rose by 13.4 percent in 2013 to US$14.2 billion from US$12.5 billion a year ago. Export receipts constituted 92.6 percent of the total revenues of the industry, slightly lower than the 93 percent share posted in 2012. Contact Centers continued to generate the highest export receipts, accounting for a hefty 53.5 percent share (or US$7.6 billion) of the industry’s total exports in 2013. The U.S. remained the biggest market of IT-BPO services exports at 72.6 percent share.

Equity capital investments in the industry grew at a double-digit rate (14.2 percent) in end-2013 to reach US$8.4 billion, albeit slower than the 27.5 percent growth recorded in 2012. Foreign equity capital infusion amounting to US$7.8 billion represented 93.4 percent of total equity capital investments in the industry, slightly lower than the 95 percent share in the previous year. All sub-sectors posted moderate declines in foreign-to-total equity ratios compared to those registered a year ago.

The local IT-BPO industry’s total employment reached 851,782 in 2013, maintaining a double-digit growth rate of 10.6 percent. Contact Centers remained the top industry employer, with 62.3 percent share. Contact Centers were also the key driver of employment growth, contributing 5.6 percentage points to the 10.6 percent rise in total industry employment. A total of US$7.9 billion compensation was paid by the local IT-BPO industry in 2013, 16.2 percent higher than the US$6.8 billion registered during the previous year. The industry’s annual average compensation per employee in 2013 also rose by 5.1 percent to US$9,297 (or P394,623) from US$8,849 (or P373,662) in 2012. Software Development remained the top paying sub-sector in the industry, with an annual average compensation paid of US$18,453 (or P783,261), 6.2 percent higher than the US$17,383 (or P734,045) annual average compensation posted a year ago.

A total of 1,098 IT-BPO companies were covered in the 2013 survey, an increase of 14.6 percent from 958 companies in 2012. The data were gathered from a total of 699 companies. Source companies included those engaged in the operations of call centers, medical and legal transcription, animation, software development and other BPOs. These companies are members of the various IT-BPO associations and companies registered with attached agencies of the Department of Trade and Industry, namely, the Philippine Economic Zone Authority and the Board of Investments.

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