Dollar dip has little effect on BPO profits--ePLDT chief
By Lawrence Casiraya
INQUIRER.net
First Posted 12:27:00 05/09/2008
MANILA, Philippines -- Despite the depreciation of the US dollar, the effect on profit margins for business process outsourcing (BPO) companies remains insignificant, according to a top official of PLDT.
A recent survey of BPO executives noted that further depreciation will take its toll on industry competitiveness once it moves down to P37 per dollar.
"The margins are still deeper," said Ray Espinosa, president and CEO of ePLDT, when asked by INQUIRER.net to comment on the matter at the sidelines of PLDT's financial briefing this week.
At present, Espinosa estimates BPO companies are still able to deliver 40 to 45 percent operational cost-savings to offshore clients.
ePLDT, the information and communications technology arm of the PLDT Group, reported P2.6 billion in revenues for the first quarter, 85 percent of which is contributed by its BPO businesses Ventus and SPi.
The two companies have a combined employee base of 14,000 located in 22 delivery centers.
The peso appreciation has more impact in its voice-based or call center business where revenues are dollar-denominated. Dollar revenues grew 21 percent but in peso terms the growth is only seven percent.
"But our voice-based business remains promising with new contracts in the pipeline and expansion of existing contracts," Espinosa said.
ePLDT currently pumps in six percent of PLDT's total revenues. The goal in the near-term is to increase that share to 10 percent, Espinosa said.
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