MANILA, Philippines-The economy should follow a development plan depends less on business process outsourcing (BPO), but has substantially increased the services sector in the last decade, a senior central bank official said.
BSP Deputy Governor Diwa Guinigundo said that while it is prudent to generate more investment and BPO for the sake of creating jobs and increasing incomes, the economy should continue to generate more investment in industries such as manufacturing.
BPO investments, which are a type of non-equity mode (NEM) of investments, easy to generate, are also easy to lose, according to Guinigundo.
Since companies could easily end up contracts with outsourcing companies, employment and income generated by the BPO sector have been considered less stable than those generated by industries.
"We'll get more investment NEM, but we will create an environment in which we can rely less on them and more industries," said Guinigundo.
He said he agrees with comments from the World Investment Report 2011, released Tuesday by the United Nations Conference on Trade and Development (UNCTAD).
According to the report, NEM investments have contributed significantly to the total FDI received by many developing countries like the Philippines.
The report notes that in 2009, investing activities worldwide NEM generated nearly $ 2 billion in revenue, adding that the figure for 2010 could be higher.
"Border NEM worldwide activity is important and of particular importance in developing countries. In most cases, NEM are growing faster than the industries in which they operate," said the UNCTAD report.
The report also said, however, that while investments NMS have been helping drive the economies of developing countries, the strong dependence that takes risks.
"NEM also pose risks for developing countries. The employment contract manufacturing can be very cyclical and easily dislodged," the report said.
The report also said that some corporations might be some of the needs of outsourcing your work to avoid social and environmental standards.
The BPO sector, which includes the sun industry subsector call the call center, has been credited with helping to provide jobs in the last 10 years to compensate for the weaker job creation in recent years by other sectors such as manufacturing.
Philippines last year overtook India to become the biggest player in the call center as investments increasingly in the field have been generated.More
BSP Deputy Governor Diwa Guinigundo said that while it is prudent to generate more investment and BPO for the sake of creating jobs and increasing incomes, the economy should continue to generate more investment in industries such as manufacturing.
BPO investments, which are a type of non-equity mode (NEM) of investments, easy to generate, are also easy to lose, according to Guinigundo.
Since companies could easily end up contracts with outsourcing companies, employment and income generated by the BPO sector have been considered less stable than those generated by industries.
"We'll get more investment NEM, but we will create an environment in which we can rely less on them and more industries," said Guinigundo.
He said he agrees with comments from the World Investment Report 2011, released Tuesday by the United Nations Conference on Trade and Development (UNCTAD).
According to the report, NEM investments have contributed significantly to the total FDI received by many developing countries like the Philippines.
The report notes that in 2009, investing activities worldwide NEM generated nearly $ 2 billion in revenue, adding that the figure for 2010 could be higher.
"Border NEM worldwide activity is important and of particular importance in developing countries. In most cases, NEM are growing faster than the industries in which they operate," said the UNCTAD report.
The report also said, however, that while investments NMS have been helping drive the economies of developing countries, the strong dependence that takes risks.
"NEM also pose risks for developing countries. The employment contract manufacturing can be very cyclical and easily dislodged," the report said.
The report also said that some corporations might be some of the needs of outsourcing your work to avoid social and environmental standards.
The BPO sector, which includes the sun industry subsector call the call center, has been credited with helping to provide jobs in the last 10 years to compensate for the weaker job creation in recent years by other sectors such as manufacturing.
Philippines last year overtook India to become the biggest player in the call center as investments increasingly in the field have been generated.More
