• ‘IT-BPM to create 1M more jobs by 2022’


    The country’s information technology and business process management (IT-BPM) industry, or widely known as the business process outsourcing (BPO) sector, aspires to create one million more jobs by 2022, a significantly faster growth pace compared with the past 15 years, sector executives said.

    During the IT-BPM Roadmap 2017 to 2022 launch on Monday, IT and Business Process Association of the Philippines (iBPAP) Chairman of the Executive Committee Benedict Hernandez said the industry’s ambition is to “create another one million higher value direct jobs in IT-BPM over the next six years.”

    “There’s also an additional three to four indirect jobs created per direct job in our industry, according to research. So in total, we are looking at four to five million new jobs in the country,” said Hernandez, who is also the president of the Contact Center Association of the Philippines (CCAP).

    CCAP handles the voice component or the call center portion of the IT-BPM industry, which accounts for 80 percent to 90 percent of the total outsourcing services in the country.

    With the advent of the industry’s diversified growth in other professional outsourcing services areas than contact centers, Hernandez said the share of the voice segment to the industry might be reduced to 67 percent as non-voice professional outsourcing services increase to 33 percent by 2022.

    “Contact centers are still growing, but the growth in other areas has been really interesting,” Hernandez said.

    Non-voice segments of the industry that have manifested robust growth are the technical outsourcing services for healthcare, IT, and knowledge process outsourcing (KPO), the iBPAP official said.

    Aside from diversifying new growth areas, he also pointed out the industry’s drive to expand in the provincial areas, especially the Top 10 Next Wave Cities, rather than the Metro Manila-intensive growth to date. At present, Hernandez said 70 percent of BPO firms are located in the metro, while the 30 percent balance is located in the regions, which is expected to go higher in the next few years.

    At present, the 2017-2022 roadmap is 60 percent finished, but is expected to be completed and presented to the public on October 27.

    Hernandez said the roadmap would detail the status of the IT-BPM industry, its improvements from the 2010-2016 roadmap, the other issues to be addressed, as well as the viable industry targets.

    Based on the previous 2010-2016 roadmap, the industry is targeting revenues to hit $25 billion with 1.3 million workers. As of end-2015, actual industry revenues amounted to nearly $22 billion while it created a total 1.1 million jobs.

    Also according to the 2016 roadmap, Hernandez said the robust Philippine BPO industry already accounts for “near 10 percent” of the global outsourcing sector valued at $166 billion.

    He said the Philippines could take advantage of the opportunities presented by the global outsourcing market, saying, “What we see is there is still huge global market opportunity for IT and BPM. There is about a trillion dollar opportunity of IT in business process services that could be sourced from countries like the Philippines, and 17 percent of that or a $166 billion dollars has been sourced today.”

    “With a 6 percent compounded annual growth rate (CAGR), total global opportunity for outsourced IT-BPM is expected to grow from $166 billion to $250 billion by 2022. As a preferred destination for IT-BPM work, the Philippines has been growing at more than twice the global market growth rate over the last five years,” Hernandez said in a statement.

    “With the rapid evolution of digital technology and the changing preferences of clients, we will have an opportunity to accelerate our shift to higher value services. The main question the roadmap will address is what key investments are required to fully take advantage of the new market and technology trends,” he added.

    iBPAP 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.
    Aside from CCAP, iBPAP members include the Animation Council of the Philippines Inc.
    (ACPI), the Game Developers Association of the Philippines (GDAP), Global In-house Centers Council (GICC), the Healthcare Information Management Association of the Philippines (HIMAP), and the Philippine Software Industry Association (PSIA).


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