Bosch announced plans to expand its call center, service and sales business outside of Metro Manila to sustain its “double-digit” growth in the Philippines.
The German auto parts and power tools giant said it is targeting second third-tier areas after opening offices in Cagayan de Oro, Davao and Cebu.
Bosch Southeast Asia president Martin Hayes, however, added that the company will definitely expand its 350-strong business process outsourcing operation in Manila.
Hayes added that the Philippines has the second largest population in ASEAN and a great consumer market for Bosch.
Demand for Bosch products is expected to rise as more countries pass legislation on auto safety features that the company provides, like anti-breaking systems (ABS), Hayes said.
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Bosch’s Electronic Stability Program has helped save 8,500 lives and prevented 250,000 accidents in Europe alone, he said.
The German firm’s plan is in line with the Philippine government’s push to move the outsourcing industry outside of Metro Manila.
The Board of Investments (BOI) is now finalizing the general polices and specific guidelines of the new three-year investment blueprint that includes a provision that ends the perks to business process outsourcing (BPO) firms.
The BOI blueprint stated that the perks granted to BPO investments in Metro Manila will be lifted by 2019 as the government seeks to funnel fresh capital to the provinces.
The 2017 Investment Priority Plan (IPP) includes more SME-oriented, innovation-drive, health and environment conscious activities.
According to the memorandum, there is a deliberate policy to shift investments to the countryside.
Philippine Outsourcing Industry to Continue Growing
The Contact Center Association of the Philippines forecasts the global business outsourcing industry to expand by 6% annually over the next six years.
In the Philippines, the growth is expected to be two or three times faster being one of the industry’s world leaders.
Last year, the BPO industry in the country was estimated to have earned USD25bn in revenues. – [BusinessTimes.ph]