th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

IT-BPO industry will be worth Php 12 trillion by 2022

Government assures sector of tax incentives to foster its growth
By Entrepreneur Staff |

 

 

Expect the IT-BPO sector in the Philippines to grow, as its worth increases from Php 8 trillion (US$ 166 billion) to Php 12 trillion (US$ 250 billion) by 2022, spurred by the demand for outsourcing services projected to double up by the same year.

 

The Department of Trade and Industry through Sec. Ramon Lopez announced the projections at the recently-held general assembly meeting of the Information Technology and Business Process Association of the Philippines (IBPAP), the enabling body for the information technology and business process management (IT-BPM) sector in the country.

 

“The Philippines has been growing at more than twice the global market growth rate over the past five years,” said Secretary Lopez, stressing the rise in the total global opportunity for outsourced IT-BPM.

 

Secretary Lopez asked industry players to work with the government in developing strategies that will enable the industry to sustain its positive growth trajectory and create more jobs, particularly in light of the upcoming end of the IT-BMP Industry Roadmap 2011-2016.

 

The roadmap served as the industry’s guide, plotting out growth assumptions and action plans, and targeted revenues of up to Php 1.2 trillion (US$ 25 billion), plus an employee base of 1.3 million for the sector by year’s end.

 

A new industry roadmap covering 2017 to 2022 will be released to the public next month.

 

According to the trade chief, the IT-BMP sector’s contribution translates to a high value-added Php 916 thousand (US$ 19,000) per capita by year end, projected to further rise as the sector aims to acquire higher value projects on software development, healthcare information management, creative services and products and engineering services.

 

Policy reforms and other government initiatives for the IT-BPM industry were also outlined, including the implementation of the Training for Work Scholarship Program (TWSP), which has reportedly benefited over 230,000 graduates from 2010 to May 2016.

 

A partnership between the Commission on Higher Education and IBPAP has also resulted in the creation of the Service Management Program (SMP), a specialization track for business and IT schools that train manpower suited for the sector.

ADVERTISEMENT - CONTINUE READING BELOW

 

As for investment incentives, Sec. Lopez said that IT-BPM activities may avail of several tax incentive packages provided by the Board of Investments and the Philippine Economic Zone Authority, adding that the DTI is supporting the modernization of the country’s investment incentives programs.

 

“In granting incentives, our focus will be on creating decent jobs in the Philippines and as such, bias against foreign investors and against those serving the domestic market will be removed,” Sec. Lopez assured.

 

Latest Articles

Close