subject: European Outsourcing Firms To Increase Its Growth In The Philippines [print this page] The Philippines has made a big noise in terms of business process outsourcing (BPO) the previous years. BPO industry continues to be strong this year (2012) attracting more offshoring and outsourcing companies from Europe to expand their operations in the country.
According to European Union Ambassador to the Philippines, Guy Ledoux, outsourcing to the Philippines is a way for European firms to extend their competitiveness. So, it is really expected that European companies engaged in the business process outsourcing industry will also develop their operations in 2012.
Business process outsourcing (BPO) sector is considered as a sunshine industry in the Philippines. The growth of this industry is predicted to increase 20 percent this year. It was last year (2011) when the Philippines has caught up India as the top outsourcing hub in the world. Statistics showed that more than 500, 000 Filipinos are presently employed in BPO firms.
Meantime, Ledoux said that about 10 percent of business process outsourcing companies that operate in the Philippines are European firms. IT Philippines
is one of the well-known services outsource by these European companies because of the strong demand for mobile phones and tablet computers. European firms are also eyeing to expand in electronic sector which continues to post high growth in the market.
Ledoux also added that Europeans firms are also targeting investments in renewable energy. This is in the connection of the news last year that about 70 percent of new power generation capacity in Europe was renewable energy sources. Europe is famous in renewable energy and 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. This as far as foreign investment and trade between the two countries engage in business process outsourcing (BPO) industry are concerned.
Although at this point in time especially this year (2012), it is still difficult to forecast the level of trade and investment between Europe and Philippines. But despite all, it is clear that there is obvious and strong willingness in both countries to further expand their economic links. Europe and Philippines are already making efforts to create a facilitative climate to attract European investor to the Philippines. Of course, this is because both sides are eager to expand two way trades most specially in business process outsourcing sector.
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