Trade and Industry Secretary Peter B. Favila sees a new wave of investments in the business process outsourcing industry through the next wave cities.

Favila’s assessment came following the overwhelming response from officials of the World BPO Forum where various BPOs called on President Arroyo during her recent New York trip.

“They acknowledge the growth of BPOs in the Philippines which along with India is tagged as a growth area,” Favila said.

Favila said that Ray Anthony Roxas-Chua III, chairman of the Commission on Information and Communication Technology, has promoted the next wave cities as alternative sites in the Philippines. Cities with efficient infrastructure, connectivity and available human resources that are available there are called the next wave cities upon determination by a committee.

“Based on that, we will see another wave of players in the BPO industry through the next wave cities,” Favila said Favila said that US firms continue to outsource but are doing this quietly.

“Outsourcing is a business decision that has to be made to be cost effective and the Philippines is ready to provide the services,” Favila said.

The contact center sector, which accounts for the bulk of the country’s total outsourcing industry, is still on track of hitting its 15 percent growth target, a $5 billion revenue generation and employment of 375,000 by end this year.

“Despite the global financial crisis we have a healthy growth at double digit,” said Call Center Association of the Philippines (CCAP) president Benedict Hernandez although there have been volume declines in certain market segments with price and efficiency issues.

Hernandez said that during this crisis period clients are also demanding for cheaper, faster and better delivery of services while call center firms are eyeing for faster, higher and stronger operations.

“That is why we should have sustainable approach to labor cost and pricing policy,” he said. (BCM)