MANILA, Philippines – The Philippine information technology and business process management (IT-BPM) industry is “on its way” to hit its target of $25 billion worth of revenue by the end of the year, thanks to bullish incoming investors to the country.
“Currently, we are, on estimate have 1.1 million employees. And at the end of 2015, we hit $22 billion worth of revenues,” Danilo Sebastian Reyes, chairman of the IT and Business Process Association of the Philippines (IBPAP), told reporters, Wednesday, February 3.
IBPAP’s roadmap 2012 to 2016 had previously estimated the BPO (business process outsourcing) industry will hit $25 billion worth of revenues with 1.3 million employees by yearend.
Reyes said more investors are setting shop in the country this year, coming from more “spread out” geographical locations, including Europe and Australia.
"Some [investors] are in-house global centers who want diverse talents and skills, from finance and accounting to IT. So these are high-value services," Reyes said.
With such optimism in the industry, IBPAP are setting for greater heights with its third roadmap for 2017 to 2022, slated to be made public by August this year and to be presented to the new administration.
“We’re looking at expanding the services we currently offer, especially in the health care sector which seeks to grow five times its current number of 100,000 employees,” Reyes said.
Foreign investors have not expressed concerns yet with the changing leadership in the country, as the May 2016 presidential election is approaching, but Reyes said it hopes the new administration will “improve infrastructure, ensure business security, and friendly business environment.”
The BPO industry, with almost 1000 companies across the country have also successfully implemented the New Wave Cities, or locations within and outside Metro Manila where the services sector can set its offices.
The IBPAP has previously penned 15 cities, and the number is expected to climb to “at least 20.” As of today, 20% of the industry is outside the metropolitan cities.
“We’re still trying to grow that number. We’re looking at Northern Luzon, some parts of Visayas and Mindanao and really make growth inclusive. President (Benigno) Aquino (III) has previously hoped of making it 60%,” Reyes said.
In 2015, the service sector accounted to 7.4% of the country’s Gross Domestic Product (GDP), 8.9% of which comes from the BPO industry.