Article from Forbes.com by David Penn
In the Philippines, JP Morgan is one of the leading KPO companies in terms of finance and accounting. It is projected that the KPO industry is moving up to put up high-value services in outsourcing. With this, JP Morgan may lead in this effort to expand the industry especially in locations other than Metro Manila such as Cebu, which is now being considered as one of the top five outsourcing destinations in the world. Even though this would be a risky investment on the part of the company, the returns will be high if the necessary measures are implemented.
As of 2010, the contribution of the entire BPO industry to the GDP of the Philippines is around 49%. If JP Morgan continues to have higher levels of productivity, through new investments, the company would possibly yield higher gross value added to the industry, therefore, significantly contributing to the growth rate of the country.
Furthermore, when JP Morgan expands, it would demand for more labor force, therefore, giving more jobs to Filipinos and hopefully reducing the unemployment rate of 6.9% as of April 2012. In effect, this would spur the increase in private consumption spending that constitutes 54.3% of the GDP of the country as of the fourth quarter of 2011.
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