In terms of business process outsourcing, the Philippines has made a big impact. The BPO industry continues to be strong, attracting more offshoring and outsourcing companies from Europe to expand their operations in the country.
Guy Ledoux, a European Union Ambassador of the Philippines said that the outsourcing to the Philippines is a way for European times extend their competitiveness. This 2012, it is really expected that European companies engaged in the Business Process Outsourcing industry will also develop their operations. The Business Process sector is considered as a sunshine industry in the Philippines. This 2012, the growth of this industry is predicted to increase 20 percent. The Philippines has caught up India as the top outsourcing hub in the world last year, statistics showed that more then 500,000 Filippinos are presently employed in Business Process Outsourcing firms.
Ledoux stated that about 10% of the business process outsourcing companies that operate in the Philippines are European firms. The IT Philippines is one of the well-known services outsource by European companies because of the strong demand for the mobile phones and tablet computers. The European firms are also eyeing to expand in electronic sector which continuous the post high growth in the market. He also said that Europeans firms are also targeting investments in renewable energy. Last year about 70% of the new power generation capacity in Europe was renewable energy sources. European investors are looking forward to make a decision to feed in tariffs.
The flow of European investments into the Philippines will highly depend on the investment climate in the country more than on their economic situation in Europe. In business process outsourcing industry, this is the foreign investment and trade between the two countries. It is still difficult to forecast the level of trade and investment between Europe and Philippines although at the point in time especially this year. Even though, it is clear that there is an obvious and strong willingness in both countries to further expand of the economic links. The Philippines and Europe are already making efforts to create a facilitative climate to attract European investors to the Philippines, this is due to both sides that eager to expand two way trades most specially in the business process outsourcing sector.
REFERENCE:
http://www.eastvantage.com/news/european-outsourcing-firms-increase-its-growth-philippines
