PeopleSupport

Here's what's happening on the microeconomic front. PeopleSupport (Nasdaq symbol: PSPT), one of the BPO stalwarts driving the economic expansion, has 7,500 employees in the Philippines. How fast is its business growing? Check out their 2006 earnings report:

For the full year 2006, PeopleSupport reported record revenues of $110.1 million, an increase of 77% from $62.1 million reported for the full year 2005.

The fourth quarter of 2006 was its best ever:

Revenue in the fourth quarter of 2006 was a record $31.0 million, an increase of 82% from the $17.0 million reported in the fourth quarter of 2005.

Of course, such rapid growth can't be sustained. The company expects its growth rate to moderate to about 27%-31% in 2007 (full-year revenue of $140 million to $144.5 million).

Here's the thing that other industries would kill for. The growth constraint on PeopleSupport, like all the other BPOs in the country, isn't its product line up or the presence of fierce competitors. It's simply not being able to find enough qualified personnel. That's the kind of situation many managers, and business owners, would like: growth held back not by market demand, but by operations.