Despite global economic challenges, outsourcing to the Philippines continues to thrive. With a new organization at play, it seems that foreign investors may just be more interested in pursuing the Philippines as their preferred outsourcing destination.
European investment authority Brummer & Partners has allocated $120 million to invest on Philippine companies as it aims to take advantage of the country’s thriving economy. The private equity fund will be invested on companies in the service and consumer sectors. Particularly, the business process outsourcing (BPO), real estate, and consumer finance industries. The Philippine Daily Inquirer reveals that Brummer plans to take minority investments in privately-held companies and eventually exit after several years once that company goes public or is acquired by a larger firm.
According to Brummer & Partners co-founder Patrick Brummer, the number of opportunities in the Philippines could pose as a challenge since choosing the best prospects could be difficult. The firm decided to invest in the Philippines as it displayed strong economic progression. As Brummer says, I d rather be investing in the Philippines than in the west in the next 10 years.
The assumption that the Philippine economy will grow significantly in the next decade echoes the positive predictions of organizations such as the Information Technology and Business Process Association of the Philippines, which predicts that the industry will grow to $15 billion by 2016.