It’s Php 247 billion for the BPO workers of Philippines. It’s still a forecast, but it sure is a very large sum for Business Process Outsourcing Industry of Philippines.
A lawmaker expects the amount to be paid out in salaries to the nation’s BPO workers for the year 2012. The House deputy majority leader and Pasig representative, Roman Romulo, said that with the projected industry revenues totaling to roughly $13 billion, BPO companies are expected to disburse approximately $5.85 billion in salaries alone this year, spending “40 to 45 percent of their revenues to compensate their staff.”
This would largely contribute to an increase in the country’s consumer spending. The Business Process Outsourcing Industry of Philippines—which covers call center services; back-office functions; medical, legal, and other types of data transcription; animation; software development; engineering design; and digital content—is driving consumer spending up.
A cited survey by the Bangko Sentral ng Pilipinas indicated that the Filipino BPO workers get an average of Php 383,863 in annual compensation.
Last 2011, the industry posted $11 billion in revenues with a workforce of 638,000. By 2016, the BPO firms are expected to generate an annual revenue of $27 billion and an estimated 1.3 million jobs for Filipinos.
For 2012, the Business Processing Association of the Philippines said that the BPO sector is eyeing to generate 126,000 job opportunities for Filipinos and an added $2 billion for the annual revenue, with a total of $13 billion for this year.
The Php 247 billion worth of wages is equal to 14 percent of the national government’s Php 1.816 trillion spending program this year, and larger than the budgets of the top five departments of the country, shared Romulo.
For 2012, the budget of the Department of Education is Php 238.8 billion; the Department of Public Works and Highways, Php 125.5 billion; the Department of National Defense, Php 107.9 billion; the Department of Interior and Local Government, Php 101.4 billion; and the Department of Agriculture, Php 54.1 billion.
The said amount is also 53 percent higher than the budget of the Social Security System (SSS), the Government Service Insurance System (GSIS), and the Philippine Health Insurance Corporation (PhilHealth); the three government agencies will be paying out Php 161 billion combined in annual benefits to its members.
The growth of the Business Process Outsourcing Industry of Philippines has signaled the rise in the citizens’ consumer spending, which also contributes to the growth of the economy of the country. The high payout for the BPO workers will be a significant factor in increasing the demands for goods and services in the country.
The BPO Industry of the Philippines has carried out the prediction of giving more jobs with good remunerations to the Filipino people. It has brought a new trend among the Philippine culture, making it more diverse, since the time of the Colonization. This proves that the country is more than ready to welcome various investors.
The BPO Industry of the Philippines is not only helping the country boost its economy, but also enhancing the country’s diverse culture.