The Philippine outsourcing industry has cut its 2022 revenue target by US$9.9bn amid concerns over domestic tax changes, the increased use of automation, growing US economic protectionism and the likelihood of a global recession. Of the US$38.9 growth forecast made in 2016, the industry – one of the country’s key economic pillars – is now forecasting expansion of between US$29bn-32bn within the next three years, according to research released by the Everest Group, a Texas-based management consultancy, and commissioned by the IT and Business Process Association of the Philippines (IBPAP).
The research also found that the industry is now only expected to recruit some 1.42m-1.57m additional employees over the same period, well down on the original forecast of 1.8m. In more positive news, overall revenue this year is expected to grow by 5.3% to US$26bn, a marked increase over last year’s US$24.7bn, while an additional 1.29 million members of staff will have been employed. IBPAP, an outsourcing trade body with a particular focus on call centers, back-end software support, health care, accounting and animation, announced the revised targets during a recent industry summit.