IT-BPM sector to hit $25B 2016 revenue target

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The information technology and business process management (IT-BPM) sector of the country is “on track” to meet its goal of $25 billion in revenue and 1.3 million jobs by end-2016, a contribution of 7 percent to 7.5 percent of the Philippines’ gross domestic product for the year, according to an industry group.

Benedict Hernandez, chairman of the executive committee of the IT and Business Process Association of the Philippines (iBPAP), said that they are on track to achieve the goals indicated on the IT-BPM Roadmap 2012-2016.

“As far as the roadmap 2016 goals, which we actually set out five and a half years ago, we’re on goal and on target,” Hernandez told reporters during the opening of the first Philippine IT-BPM office of US-based Affinion Group last week.

“We were successful in diversifying the industry and its businesses over the last couple of years…of where are clients are coming from, and…we also manage to broaden the types of services and capabilities that the Philippines is known for,” he added.


Before the onset of the roadmap, Hernandez said a lot of clients were from the North America, but now that the 2012-2016 roadmap is about to end, clients in Asia and Europe are “growing faster than expected.”

IT-BPM services have also expanded, mainly in the areas of knowledge process outsourcing (KPO) and health information management (HIM). Other segments that are showing good growth are IT and engineering services, animation and gaming development, legal process outsourcing, and marketing services, Hernandez said.

“Over the years, it’s more of diversifying service portfolio in the Philippines. And [based on]the roadmap 2016, we are also successful in driving growth in multiple locations across the Philippines. That was part of our agenda in the roadmap…We’re happy that there’s group progression in the past six years,” the iBPAP chief said.

A lot of IT-BPM firms have located outside Metro Manila to the so-called Top 10 Next Wave cities.

As of the 2015-2016 list, the Next Wave Cities are Baguio City, Dasmariñas City, Dumaguete City, Lipa City, Malolos City, Naga City, Sta. Rosa City in Laguna, and Taytay City in Rizal.

Aside from the Next Wave Cities, there are also “New Centers of Excellence” and “Emerging Locations” where some IT-BPM firms have set up offices.

Davao and Iloilo City are dubbed as the new centers of excellence, while 10 others were named as emerging locations, including Balanga City, Batangas City, Iriga City, Laoag City, Legazpi City, Puerto Princesa City, Roxas City, Tarlac City, Tuguegarao City, and Zamboanga City.

Hernandez said iBPAP is now crafting the 2017-2022 IT-BPM Roadmap, which is will be launched on October 27 during the annual IT-BPM conference.

The group has teamed up with growth solutions and strategies provider Frost & Sullivan in crafting the 2017-2022 roadmap, and has partnered with 11 sponsors to fund the roadmap, he added.

Affinion opens BGC office
On the same day, US-based loyalty and customer engagement solutions provider Affinion Group opened its first IT-BPM office in the Philippines, located in Bonifacio Global City.

Affinion is a newcomer in the IT-BPM space in the Philippines, but views great prospects in the country and is expecting to expand its operations, depending on performance of its BGC office, the company said.

The BGC office houses 210 employees—out of Affinion’s 1,600 employees in its contact centers—and services Affinion’s accounts worldwide. The Philippine office is an addition to the group’s 28 call centers worldwide, some of which are in the US, Germany, Spain, Italy and Turkey.

Affinion caters its services to financial institutions like Mastercard, as well as travel companies.

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