IT-BPM industry confident of hitting $42 billion revenue target
The Information Technology and Business Process Association of the Philippines expects to attain its $42-billion revenue target this year, driven by growing interest among companies in establishing global capability centers in the country.
The IT-Business Process Management (IT-BPM) industry in the Philippines is optimistic about hitting a substantial $42 billion revenue target this year. This optimistic outlook is backed by the growing interest from companies in establishing global capability centers (GCCs) in the country. IBPAP president and CEO Jack Madrid expressed confidence in achieving this target, noting that last year the IT-BPM industry generated $40.3 billion in revenue.
The growth of this sector is anticipated to be driven by the expansion of GCCs. Madrid explained that these centers are owned and controlled by the parent companies of multinational corporations and offer various business services like finance, human resources, and information technology support. Unlike traditional outsourcing, they provide a more direct relationship between the service provider and the client company.
Currently, the Philippines hosts over 200 GCCs, placing it second only to India, which has around 2,200. Madrid emphasized that despite this ranking, the growth rate in the Philippines needs to be accelerated. He highlighted the need for the industry to focus on developing an AI-enabled workforce, stating that while demand exists, the availability of skilled talent remains a critical factor in achieving growth.
Madrid suggested that besides AI fluency, the workforce should possess deep domain knowledge, critical thinking, problem-solving, communication, and leadership skills.
As the year progresses and the holiday season approaches, IBPAP expects an uptick in hiring for the fourth quarter, driven by seasonal demand for outsourced services. This boost is expected to benefit business process outsourcing firms. Additionally, the lifting of the moratorium on IT ecozone applications in Metro Manila, initiated last July by the Office of the President, is expected to further support the industry.
This move has drawn about three to five IT park applications in Metro Manila, according to Tereso Panga, director general of the Philippine Economic Zone Authority.
The Luzon Economic Corridor (LEC) initiative is also anticipated to positively impact the IT-BPM industry. This initiative aims to hasten infrastructure investments, enhance connectivity, and fortify supply chains across Luzon's growth centers, including Subic, Clark, Manila, and Batangas. Madrid underscored that any advancement in the country's infrastructure, be it digital or physical, is vital for the industry.
He also stressed the importance of a robust human capital, asserting that improvements in Luzon's economic health will be beneficial for the IT-BPM sector, as it will enhance the availability of talent and designate specific regions as hubs.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
