THE so-called sunshine industry, according to one of its leaders, will continue to shine in the future.

This was the essence of the message delivered by Oscar Sañez, president and chief executive officer of the Business Processing Association of the Philippines (BPAP), in his speech during the official launch of Roadmap 2010, a comprehensive report commissioned by the industry’s stakeholders for the future of the country’s offshoring and outsourcing (O&O) industry.

The O&O industry is composed of sectors like contact centers, which involve both voice and data, business process outsourcing for accounting, payroll, human resources, and legal and medical transcription, plus software design and development, animation and other IT-enabled services.

Sañez said that this is a young industry but a fast-growing one, which, he said, grew by 48 percent per year for the last two years. Total Philippine revenue last year totaled $3.6 billion, with a growth rate of 40 percent per year and employing about 260,000 people.

He said the Philippines is targeting 40-percent growth year-on-year and to hit $13 billion in revenues by 2010, or about 10 percent of the expected market size of the global O&O pie of $130 billion by 2010, and provide direct employment to close to 1 million people.

Sañez also laid out action plans that include programs in key areas like talent, business environment, the so-called next-wave cities, plus the creation of a full-time BPAP team called Team 2010.

In terms of talent, the BPAP has five programs already lined up, like assessment and training programs in order to find the best talent for job demands, promote O&O as a viable career opportunity for graduates, tap other talent pools, especially in areas outside of Manila, and improve access to funding for deserving students.

“Developing talent is a top priority for us. We hope to increase the employment yield in order for us to achieve our objectives,” Sañez said.

For the business environment, the BPAP will help in creation of public policies, promote the country as viable location and seek more investor support.

Another important aspect of the road map is the creation of the next-wave cities by creating additional hubs in the country. Right now, Sañez said, there are now 15 cities classified as next-wave cities. “The BPAP will continue to provide tools and services to support the development of these cities,” he explained.

The creation of a full-time team called Team 2010, composed of the brightest minds in their respective industries, is also a vital initiative, he said. From a mere volunteer-type of team, Sañez said the BPAP will now be a full-time, fully resourced organization, and will work closely with other industry stakeholders like  academe, the government and the industry through various working groups.

Chris Beshouri, president of McKinsey and Co., the company commissioned to the report, said the road map may seem aggressive but it is achievable. “India did the same thing a couple of years ago and they achieved their targets. If they were able to do it, so can the Philippines,” declares Beshouri.

“This road map is formed to get all stakeholders involved. This also shows that the Philippines is determined to win the O&O game, and we will surely do that,” adds Sañez.

When asked for the BPAP’s vision beyond 2010, Sañez intimated in an interview with the BusinessMirror after the press briefing that the association is taking it one step at a time and, being a fast-growing industry, it is hard to make long-term forecasts.

“So many things can happen between now and 2010, that’s why we’re careful about our forecasts but yes, we’re surely looking beyond 2010, probably even up to 2012,” he said.

Even if by 2010 there is already a new administration, Sañez is confident the new leader will still support the industry. “We believe the next president will support us. We just have to show good and positive results in our efforts.”

The seven-chapter, 240-page Roadmap 2010 contains four chapters that include, among others, a description of the global O&O industry, its successes, growth prospects for the local industry, potential problems and their solutions, plus necessary actions on possible growth challenges and to advance the business. It was middle of last year, Sañez said, that industry members decided to invest on the study.

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