The business process outsourcing (BPO) industry’s annual wage contribution in the Philippines is expected to shoot up this year as investors fast-track hiring of employees outside of the National Capital Region.
According to consultants from Cushman & Wakefield and Leechiu Property Consultants (LPC) – contacted by Philstar – BPO companies will follow through with plans of expanding their operations in the country as well as developing new projects – as soon as the COVID-19 health crisis is put under control.
BPOs contribute P300 billion in wages yearly, but that number could see much improvement this year, especially with employment being conducted in areas outside of Metro Manila, LPC Executive Director for Commercial Leasing Phillip Anonuevo said.
“Let’s say an average salary of about P18,000 a month, the entire industry pays its employees roughly around P250 billion to P300 billion every year. That is the impact of outsourcing jobs to the Philippines, to our economy,” Anonuevo explained at one of Alveo Land’s virtual seminars.
Anonuevo mentions that the current situation is not that surprising, noting BPOs naturally require manpower to continue their operations.
“BPOs are always looking to other parts of the country for employing people, and that’s just the nature of their industry. They need to keep hiring thousands and thousands of employees every month,” he commented.
Although the industry seems to be doing well at the moment – like many other sectors – it was affected by the spread of the COVID-19 virus in the Philippines last year. Due to the difficulties, only 20,000 Filipino workers were hired in 2020.
However, things are forecasted to look up from this point on.
Though this is the case, Cushman & Wakefield’s Head of Research, Consulting, and Advisory Services, Claro Cordero Jr., argued that BPO firms could operate better in the country if the national government can better control the spread of the coronavirus.
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