Industry group downplays benefit of peso depreciation on BPO sector

Warren de Guzman, ABS-CBN News

Posted at Sep 28 2022 02:38 PM

MANILA - The IT and Business Process Association of the Philippines (IBPAP) on Wednesday downplayed the benefit of the peso's depreciation on the industry. 

IBPAP President Jack Madrid said that while a weaker peso may make Philippine BPO services more affordable to dollar-paying foreign customers, the currencies of other countries have also been weakening versus the dollar. 

“At the base level, certainly, the deprecation of the peso would appear to be in favor of that cost optimization for the Philippines relative to other destinations,” Madrid said. 

But he also pointed out that other countries competing with the Philippines in the BPO indusry have also seen their currencies fall versus the US dollar.

"Many of those are also currencies of other emergent IT-BPO locations," he said.

The peso weakened to another all time low against the dollar, closing at P58.999 on Tuesday. On early Wednesday, the peso dipped to as low as P59 to $1 intraday.

Madrid said that aside from costs, investors also consider other factors Filipinos are good at.

“The experience of the past 2 years have really highlighted the more critical component of the quality of talent, employability of talent as an investment consideration," Madrid said.

IBPAP's new Roadmap 2028 sees the industry generating 1.1 million new jobs which would push the total to 2.5 million workers. He said most of these jobs will come from the countryside.

The recent decision of the Fiscal Review and Incentives Board to allow the transfer of firms to the Board of Investments to continue the remote work setup will support this goal, he added.

IBPAP also aims to grow the sector's revenue to $59 billion by 2028, from $29.49 billion in 2021.

RELATED VIDEO:

Watch more News on iWantTFC